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What changed in Texas Community Bancshares, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Texas Community Bancshares, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+277 added−266 removedSource: 10-K (2026-03-25) vs 10-K (2025-03-27)

Top changes in Texas Community Bancshares, Inc.'s 2025 10-K

277 paragraphs added · 266 removed · 230 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

103 edited+13 added−17 removed169 unchanged
Biggest changeBecause the tables present contractual maturities and do not reflect repricing or the effect of prepayments, actual maturities may differ. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to ​ ​ ​ ​ ​ ​ Four-Family ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential ​ Multi-Family ​ Construction ​ Commercial ​ ​ ​ ​ Real Estate ​ Real Estate ​ and Land ​ Real Estate ​ Farmland ​ ​ (In thousands) Amounts due in: ​ ​ ​ ​ ​ One year or less ​ $ 1,090 $ 7,757 $ 30,465 $ 12,447 $ 1,975 After one year through five years ​ 7,361 ​ — ​ 11,686 ​ 15,591 ​ 3,482 After five years through 15 years ​ 21,717 ​ — ​ 1,422 ​ 10,841 ​ 1,121 After 15 years ​ 115,419 ​ 2,724 ​ 10,563 ​ 17,189 ​ 2,962 Total ​ $ 145,587 $ 10,481 $ 54,136 $ 56,068 $ 9,540 ​ 7 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ ​ Agriculture Commercial Municipalities and Other Total ​ ​ (in thousands) Amounts due in: ​ ​ ​ ​ ​ One year or less ​ $ 1 $ 2,268 $ — $ 1,443 $ 57,446 After one year through five years ​ ​ 54 ​ 2,565 ​ 845 ​ 3,098 ​ 44,682 After five years through 15 years ​ ​ — ​ 1,482 ​ 2,985 ​ 954 ​ 40,522 After 15 years ​ ​ — ​ — ​ 5,423 ​ — ​ 154,280 Total ​ $ 55 $ 6,315 $ 9,253 $ 5,495 $ 296,930 ​ The following table sets forth our fixed and adjustable-rate loans at December 31, 2024 that are contractually due after December 31, 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Due After December 31, 2025 ​ Fixed Adjustable Total ​ ​ (In thousands) Real estate loans: ​ ​ ​ 1-4 family residential ​ $ 141,057 ​ $ 3,440 ​ $ 144,497 Multi-family ​ 2,724 ​ — ​ 2,724 Construction and land ​ 10,719 ​ 12,952 ​ 23,671 Commercial ​ 23,681 ​ 19,940 ​ 43,621 Farmland ​ 4,984 ​ 2,580 ​ 7,564 Agriculture loans ​ 54 ​ — ​ 54 Commercial loans ​ 4,047 ​ — ​ 4,047 Municipalities ​ ​ 9,253 ​ ​ — ​ ​ 9,253 Consumer and other loans ​ 4,053 ​ — ​ 4,053 Total loans ​ $ 200,572 ​ $ 38,912 ​ $ 239,484 ​ One- to-Four Family Residential Real Estate Lending .
Biggest changeBecause the tables present contractual maturities and do not reflect repricing or the effect of prepayments, actual maturities may differ. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Four-Family ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential ​ Multi-Family ​ Construction ​ Commercial ​ ​ ​ ​ Real Estate ​ Real Estate ​ and Land ​ Real Estate ​ Farmland ​ ​ (In thousands) Amounts due in: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One year or less ​ $ 1,963 $ — $ 17,132 $ 3,968 $ 184 After one year through five years ​ 5,248 ​ — ​ 7,735 ​ 13,755 ​ 3,295 After five years through 15 years ​ 21,362 ​ — ​ 3,201 ​ 5,735 ​ 1,717 After 15 years ​ 111,810 ​ 10,943 ​ 20,304 ​ 38,068 ​ 11,889 Total ​ $ 140,383 $ 10,943 $ 48,372 $ 61,526 $ 17,085 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ ​ ​ ​ ​ ​ ​ ​ Agriculture ​ ​ ​ Commercial ​ ​ ​ Municipalities ​ ​ ​ and Other ​ ​ ​ Total ​ ​ (in thousands) Amounts due in: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One year or less ​ $ 7 $ 5,781 $ — $ 1,322 $ 30,357 After one year through five years ​ ​ 26 ​ 1,830 ​ 872 ​ 2,307 ​ 35,068 After five years through 15 years ​ ​ — ​ 1,202 ​ 7,256 ​ 971 ​ 41,444 After 15 years ​ ​ — ​ — ​ 6,762 ​ — ​ 199,776 Total ​ $ 33 $ 8,813 $ 14,890 $ 4,600 $ 306,645 ​ 7 Table of Contents The following table sets forth our fixed and adjustable-rate loans at December 31, 2025 that are contractually due after December 31, 2026. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Due After December 31, 2026 ​ ​ ​ ​ Fixed ​ ​ ​ Adjustable ​ ​ ​ Total ​ ​ (In thousands) Real estate loans: ​ ​ ​ ​ ​ ​ 1-4 family residential ​ $ 132,380 ​ $ 6,040 ​ $ 138,420 Multi-family ​ 7,672 ​ 3,271 ​ 10,943 Construction and land ​ 5,484 ​ 25,756 ​ 31,240 Commercial ​ 19,276 ​ ​ 38,282 ​ 57,558 Farmland ​ 13,049 ​ 3,852 ​ 16,901 Agriculture loans ​ 26 ​ — ​ 26 Commercial loans ​ 2,280 ​ 752 ​ 3,032 Municipalities ​ ​ 13,714 ​ ​ 1,176 ​ ​ 14,890 Consumer and other loans ​ 3,278 ​ — ​ 3,278 Total loans ​ $ 197,159 ​ $ 79,129 ​ $ 276,288 ​ One- to-Four Family Residential Real Estate Lending .
These are the counties in which our offices are located. 6 Table of Contents Lending Activities General. Our historical lending activity consists primarily of originating one-to four-family residential mortgage loans, commercial real estate loans, and construction and land loans. To a substantially lesser extent, we originate agricultural loans, commercial loans, loans to municipalities, and consumer and other loans.
These are the counties in which our offices are located. Lending Activities General. Our historical lending activity consists primarily of originating one-to four-family residential mortgage loans, commercial real estate loans, and construction and land loans. To a substantially lesser extent, 6 Table of Contents we originate agricultural loans, commercial loans, loans to municipalities, and consumer and other loans.
At December 31, 2024, Broadstreet Bank was in compliance with the loans-to-one borrower limitations. Capital Distributions. The Federal Deposit Insurance Act generally provides that an insured depository institution may not make any capital distribution if, after making such distribution, the institution would fail to meet any applicable regulatory capital requirement.
At December 31, 2025, Broadstreet Bank was in compliance with the loans-to-one borrower limitations. Capital Distributions. The Federal Deposit Insurance Act generally provides that an insured depository institution may not make any capital distribution if, after making such distribution, the institution would fail to meet any applicable regulatory capital requirement.
Among other things, these provisions generally require that extensions of credit to insiders: ● be made on terms that are substantially the same as, and follow credit underwriting procedures that are not less stringent than, those prevailing for comparable transactions with unaffiliated persons and that do not involve more than the normal risk of repayment or present other unfavorable features; and 23 Table of Contents ● not exceed certain limitations on the amount of credit extended to such persons, individually and in the aggregate, which limits are based, in part, on the amount of Broadstreet Bank’s capital.
Among other things, these provisions generally require that extensions of credit to insiders: ● be made on terms that are substantially the same as, and follow credit underwriting procedures that are not less stringent than those prevailing for comparable transactions with unaffiliated persons and that do not involve more than the normal risk of repayment or present other unfavorable features; and ● not exceed certain limitations on the amount of credit extended to such persons, individually and in the aggregate, which limits are based, in part, on the amount of Broadstreet Bank’s capital.
As such, it is grouped with any other capital losses for the year to which it is carried and is used to offset any capital gains. Any undeducted loss remaining after the five-year carryover period is no longer deductible. At December 31, 2024, Broadstreet Bank had no capital loss carryovers. Corporate Dividends.
As such, it is grouped with any other capital losses for the year to which it is carried and is used to offset any capital gains. Any undeducted loss remaining after the five-year carryover period is no longer deductible. At December 31, 2025, Broadstreet Bank had no capital loss carryovers. Corporate Dividends.
Management’s periodic evaluation of the adequacy of the allowance is based on various factors, including, but not limited to, management’s ongoing review and grading of loans, facts and issues related to specific loans, historical loan loss and delinquency experience, trends in past due and nonaccrual loans, existing risk characteristics of 15 Table of Contents specific loans or loan pools, the fair value of underlying collateral, current economic conditions and other qualitative and quantitative factors which could affect potential credit losses.
Management’s periodic evaluation of the adequacy of the allowance is based on various factors, including, but not limited to, management’s ongoing review and grading of loans, facts and issues related to specific loans, historical loan loss and delinquency experience, trends in past due and nonaccrual loans, existing risk characteristics of specific loans or loan pools, the fair value of underlying collateral, current economic conditions and other qualitative and quantitative factors which could affect potential credit losses.
At December 31, 2024, Broadstreet Bank met the criteria for being considered “well capitalized.” Insurance of Deposit Accounts. The Deposit Insurance Fund of the Federal Deposit Insurance Corporation insures deposits at Federal Deposit Insurance Corporation-insured financial institutions such as Broadstreet Bank, generally up to a maximum of $250,000 per separately insured depositor.
At December 31, 2025, Broadstreet Bank met the criteria for being considered “well capitalized.” Insurance of Deposit Accounts. The Deposit Insurance Fund of the Federal Deposit Insurance Corporation insures deposits at Federal Deposit Insurance Corporation-insured financial institutions such as Broadstreet Bank, generally up to a maximum of $250,000 per separately insured depositor.
The following tables set forth the contractual maturities of our total loan portfolio at December 31, 2024. Demand loans, loans having no stated repayment schedule or maturity, and overdraft loans are reported as being due in one year or less.
The following tables set forth the contractual maturities of our total loan portfolio at December 31, 2025. Demand loans, loans having no stated repayment schedule or maturity, and overdraft loans are reported as being due in one year or less.
The Texas Department of Savings and Mortgage Lending supervises and regulates all areas of Broadstreet Bank’s operations including, without limitation, the making of loans, the issuance of securities, the conduct of corporate affairs, the satisfaction of capital adequacy requirements, the payment of dividends, and the establishment or closing of banking offices.
The Texas Department of Savings and Mortgage Lending supervises and regulates all areas of Broadstreet Bank’s operations including, without limitation, the making of loans, the purchase of securities, the conduct of corporate affairs, the satisfaction of capital adequacy requirements, the payment of dividends, and the establishment or closing of banking offices.
Control, as defined under federal law, means ownership, control of or holding irrevocable proxies representing more than 25% of any class of voting stock, control in any manner of the election of a majority of the institution’s directors, or 27 Table of Contents a determination by the regulator that the acquirer has the power, directly or indirectly, to exercise a controlling influence over the management or policies of the institution.
Control, as defined under federal law, means ownership, control of or holding irrevocable proxies representing more than 25% of any class of voting stock, control in any manner of the election of a majority of the institution’s directors, or a determination by the regulator that the acquirer has the power, directly or indirectly, to exercise a controlling influence over the management or policies of the institution.
Texas law further provides that, subject to the limitations established by rule of the Texas Finance Commission, a Texas savings bank may make any loan or investment or engage in any activity permitted under state law for a bank or 21 Table of Contents savings and loan association or under federal law for a federal savings and loan association, savings bank or national bank if such institution’s principal office is located in Texas.
Texas law further provides that, subject to the limitations established by rule of the Texas Finance Commission, a Texas savings bank may make any loan or investment or engage in any activity permitted under state law for a bank or savings and loan association or under federal law for a federal savings and loan association, savings bank or national bank if such institution’s principal office is located in Texas.
The following discussion of federal and state taxation is intended only to summarize certain pertinent tax matters and is not a comprehensive description of the tax rules applicable to Texas Community Bancshares or Broadstreet Bank. Our federal and state tax returns have not been audited for the past five years. 28 Table of Contents Federal Taxation Method of Accounting.
The following discussion of federal and state taxation is intended only to summarize certain pertinent tax matters and is not a comprehensive description of the tax rules applicable to Texas Community Bancshares or Broadstreet Bank. Our federal and state tax returns have not been audited for the past five years. Federal Taxation Method of Accounting.
As a result, 11 Table of Contents in addition to the risks associated with traditional construction loans, speculative construction loans carry the added risk that the builder will have to pay the property taxes and other carrying costs of the property until an end buyer is found. Land loans have substantially similar risks to speculative construction loans. Balloon Loans.
As a result, in addition to the risks associated with traditional construction loans, speculative construction loans carry the added risk that the builder will have to pay the property taxes and other carrying costs of the property until an end buyer is found. Land loans have substantially similar risks to speculative construction loans. Balloon Loans.
We also use borrowings, and occasionally brokered deposits, to supplement cash flow needs, manage the maturities of liabilities for interest rate risk purposes and to manage the cost of funds. In addition, we receive funds from scheduled loan payments, investment maturities, loan prepayments, retained earnings and income on earning assets.
We also use borrowings, brokered deposits, and listed deposits to supplement cash flow needs, manage the maturities of liabilities for interest rate risk purposes and to manage the cost of funds. In addition, we receive funds from scheduled loan payments and prepayments, investment maturities and paydowns, retained earnings and income on earning assets.
At December 31, 2024, based on this limitation, Broadstreet Bank’s loans-to-one-borrower limit was approximately $12.0 million. Notwithstanding this legal limit, Broadstreet Bank had an in-house limit of $3.0 million for a consumer borrower and $8.0 million for a commercial borrower at December 31, 2024.
At December 31, 2025, based on this limitation, Broadstreet Bank’s loans-to-one-borrower limit was approximately $12.9 million. Notwithstanding this legal limit, Broadstreet Bank had an in-house limit of $3.0 million for a consumer borrower and $8.0 million for a commercial borrower at December 31, 2025.
At each successive lower capital category, an insured depository institution is subject to more restrictions and prohibitions, including restrictions on growth, restrictions on interest rates paid on deposits, restrictions or prohibitions 24 Table of Contents on the payment of dividends, and restrictions on the acceptance of brokered deposits.
At each successive lower capital category, an insured depository institution is subject to more restrictions and prohibitions, including restrictions on growth, restrictions on interest rates paid on deposits, restrictions or prohibitions on the payment of dividends, and restrictions on the acceptance of brokered deposits.
An institution’s determination as to the classification of its assets and the amount of its valuation allowances is subject to review by the regulatory authorities, such that additional general or specific loss allowances may be required.
An institution’s determination as to the 14 Table of Contents classification of its assets and the amount of its valuation allowances is subject to review by the regulatory authorities, such that additional general or specific loss allowances may be required.
Institutions with capital complying with the ratio and otherwise meeting the specified requirements and electing the alternative framework are considered to comply with the applicable regulatory capital requirements, including the risk-based requirements. The community bank leverage ratio was established at 9% Tier 1 capital to total average assets, effective January 1, 2020.
Institutions with capital complying with the ratio and otherwise meeting the specified requirements and electing the 22 Table of Contents alternative framework are considered to comply with the applicable regulatory capital requirements, including the risk-based requirements. The community bank leverage ratio was established at 9% Tier 1 capital to total average assets, effective January 1, 2020.
An institution is “adequately capitalized” if it has a total risk-based capital ratio of 8.0% or greater, a Tier 1 risk-based capital ratio of 6.0% or greater, a leverage ratio of 4.0% or greater and a common equity Tier 1 ratio of 4.5% or greater.
An institution is “adequately capitalized” if it has a total risk-based capital ratio of 8.0% or greater, a Tier 1 risk-based capital ratio of 6.0% or greater, a leverage ratio of 4.0% or greater and a common equity Tier 1 ratio of 4.5% or 24 Table of Contents greater.
At December 31, 2024, Broadstreet Bank had no minimum tax credit carryovers. Net Operating Loss Carryovers. As a result of the Tax Cuts and Jobs Act generally, a financial institution may carry net operating losses forward indefinitely. At December 31, 2023, Broadstreet Bank had a $2.3 million federal net operating loss carryforward. Capital Loss Carryovers.
At December 31, 2025, Broadstreet Bank had no minimum tax credit carryovers. Net Operating Loss Carryovers. As a result of the Tax Cuts and Jobs Act generally, a financial institution may carry net operating losses forward indefinitely. At December 31, 2024, Broadstreet Bank had a $2.8 million federal net operating loss carryforward. Capital Loss Carryovers.
A less than satisfactory rating may also prevent a financial institution, such as Broadstreet Bank or its holding company, from 20 Table of Contents obtaining necessary regulatory approvals to access the capital markets, pay dividends, acquire other financial institutions or establish new branches.
A less than satisfactory rating may also prevent a financial institution, such as Broadstreet Bank or its holding company, from obtaining necessary regulatory approvals to access the capital markets, pay dividends, acquire other financial institutions or establish new branches.
The USA PATRIOT Act 25 Table of Contents contains provisions intended to encourage information sharing among bank regulatory agencies and law enforcement bodies and imposes affirmative obligations on financial institutions, such as enhanced recordkeeping and customer identification requirements. Prohibitions Against Tying Arrangements .
The USA PATRIOT Act contains provisions intended to encourage information sharing among bank regulatory agencies and law enforcement bodies and imposes affirmative obligations on financial institutions, such as enhanced recordkeeping and customer identification requirements. Prohibitions Against Tying Arrangements .
Government and agency ​ — ​ — % — ​ — % Total securities available for sale ​ $ 75,189 ​ 100.0 % $ 93,327 ​ 100.0 % ​ The following table sets forth information regarding fair values, weighted average yields and maturities of available for sale investments. The yields have been computed on a tax equivalent basis.
Government and agency ​ — ​ — % — ​ — % Total securities available for sale ​ $ 59,893 ​ 100.0 % $ 75,189 ​ 100.0 % ​ The following table sets forth information regarding fair values, weighted average yields and maturities of available for sale investments. The yields have been computed on a tax equivalent basis.
Failure to meet the qualifying criteria within the grace period or maintain a leverage ratio of 8% or greater requires the institution to comply with the generally applicable regulatory capital requirements. 22 Table of Contents At December 31, 2024, Broadstreet Bank had opted into the community bank leverage ratio framework and its capital exceeded all applicable requirements. Loans-to-One Borrower.
Failure to meet the qualifying criteria within the grace period or maintain a leverage ratio of 8% or greater requires the institution to comply with the generally applicable regulatory capital requirements. At December 31, 2025, Broadstreet Bank had opted into the community bank leverage ratio framework and its capital exceeded all applicable requirements. Loans-to-One Borrower.
At December 31, 2024, all of these loans were performing according to their terms. We consider a number of factors in originating commercial real estate loans. We evaluate the qualifications and financial condition of the borrower, including credit history, profitability and expertise, as well as the value and condition of the property securing the loan.
At December 31, 2025, all of these loans were performing according to their terms. 8 Table of Contents We consider a number of factors in originating commercial real estate loans. We evaluate the qualifications and financial condition of the borrower, including credit history, profitability and expertise, as well as the value and condition of the property securing the loan.
We have also originated residential mortgage loans secured by owner-occupied properties located in the northern and eastern sections of the Dallas Metroplex. These loans are originated primarily through existing relationships and word-of-mouth referrals. These are generally jumbo loans with low loan-to-value ratios, generally in the range of 60% to 75%.
We have also originated residential mortgage loans secured by owner-occupied properties located in the the Dallas Fort Worth Metroplex. These loans are originated primarily through existing relationships and word-of-mouth referrals. These are generally jumbo loans with low loan-to-value ratios, generally in the range of 60% to 75%.
An environmental phase one report is obtained when required by policy or when the possibility exists that hazardous materials may have existed on the site or the site may have been impacted by adjoining properties that handled hazardous materials.
An environmental phase one report is 10 Table of Contents obtained when required by policy or when the possibility exists that hazardous materials may have existed on the site or the site may have been impacted by adjoining properties that handled hazardous materials.
At December 31, 2024, our investment portfolio consisted of securities and obligations issued by U.S. Government-sponsored enterprises and others including mortgage-backed securities and collateralized mortgage obligations, corporate bonds including bank subordinated debt as well as state and municipal securities. At December 31, 2024, we also owned $3.5 million of Federal Home Loan Bank of Dallas stock.
At December 31, 2025, our investment portfolio consisted of securities and obligations issued by U.S. Government-sponsored enterprises and others including mortgage-backed securities and collateralized mortgage obligations, corporate bonds including bank subordinated debt as well as state and municipal securities. At December 31, 2025, we also owned $2.6 million of Federal Home Loan Bank of Dallas stock.
Costs relating to the development and improvement of the property, however, are capitalized to the extent of estimated fair value less estimated costs to sell. 13 Table of Contents Delinquent Loans .
Costs relating to the development and improvement of the property, however, are capitalized to the extent of estimated fair value less estimated costs to sell. Delinquent Loans .
At December 31, 2024, our largest commercial real estate loan relationship consisted of a $7.5 million loan secured by self-storage facilities. At December 31, 2024, this loan was performing according to its original terms. Multi-Family Loans. At December 31, 2024, we had $10.5 million in multi-family loans, or 3.5% of total loans.
At December 31, 2025, our largest commercial real estate loan relationship consisted of a $7.2 million loan secured by self-storage facilities. At December 31, 2025, this loan was performing according to its original terms. Multi-Family Loans. At December 31, 2025, we had $10.9 million in multi-family loans, or 3.6% of total loans.
The deposit operations of Broadstreet Bank also are subject to, among others, the: ● Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records; ● Check Clearing for the 21 st Century Act (also known as “Check 21”), which gives “substitute checks,” such as digital check images and copies made from that image, the same legal standing as the original paper check; and ● Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services.
The deposit operations of Broadstreet Bank also are subject to, among others, the: ● Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records; ● Check Clearing for the 21 st Century Act (also known as “Check 21”), which gives “substitute checks,” such as digital check images and copies made from that image, the same legal standing as the original paper check; and ● Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services. 26 Table of Contents Federal Home Loan Bank System Broadstreet Bank is a member of the Federal Home Loan Bank System, which consists of 11 regional Federal Home Loan Banks.
While we may originate loans to builders whether or not the collateral property underlying the loan is under contract for sale, we consider each project carefully in light of current residential real estate market conditions.
While we may originate loans to builders whether or not the collateral property underlying the loan is under contract for sale, we consider each project carefully and evaluate current residential real estate market conditions.
At December 31, 2024, our largest construction and land development loan relationship consisted of three loans totaling $8.0 million, which is fully funded. At December 31, 2024, all of these loans were performing according to their original terms. 9 Table of Contents Our construction loans are primarily secured by properties in our primary market area.
At December 31, 2025, our largest construction and land development loan relationship consisted of four loans totaling $9.0 million, which is fully funded. At December 31, 2025, all of these loans were performing according to their original terms. Our construction loans are primarily secured by properties in our primary market area.
At December 31, 2024, our largest loan relationship with one borrower had extensions of credit totaling $9.0 million, when fully funded, secured primarily by single-family residential construction and multi-family construction projects. At December 31, 2024, the loans were fully funded and were performing according to the original terms. Our lending is subject to written underwriting standards and origination procedures.
At December 31, 2025, our largest loan relationship with one borrower had extensions of credit totaling $9.0 million, when fully funded, secured primarily by duplex construction projects and land. At December 31, 2025, the loans were performing according to the original terms. Our lending is subject to written underwriting standards and origination procedures.
As of June 30, 2024 (the most recent date for which data is available), our deposit market share in Smith County was 0.27% (19 th among 26 Federal Deposit Insurance Corporation-insured institutions with offices in the county), 8.90% in Van Zandt County (6 th among 8 Federal Deposit Insurance Corporation-insured institutions with offices in the county) and 19.94% in Wood County (3 rd among 7 Federal Deposit Insurance Corporation-insured institutions with offices in the county).
As of June 30, 2025 (the most recent date for which data is available), our deposit market share in Smith County was 0.33% (19 th among 27 Federal Deposit Insurance Corporation-insured institutions with offices in the county), 8.52% in Van Zandt County (6 th among 8 Federal Deposit Insurance Corporation-insured institutions with offices in the county) and 19.78% in Wood County (3 rd among 7 Federal Deposit Insurance Corporation-insured institutions with offices in the county).
On the basis of this review of our assets, our classified and special mention assets at the dates indicated were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ 2024 2023 ​ ​ (In thousands) ​ ​ ​ ​ ​ ​ ​ Substandard assets ​ $ 3,904 ​ $ 3,667 Doubtful assets ​ ​ — ​ — Loss assets ​ ​ — ​ — Total classified assets ​ $ 3,904 ​ $ 3,667 Special mention assets ​ $ 6,931 ​ $ 788 Foreclosed assets ​ $ — ​ $ 162 ​ Allowance for Credit Losses The allowance for credit losses is maintained at a level which, in management’s judgment, is adequate to absorb current expected credit losses inherent in the loan portfolio.
On the basis of this review of our assets, our classified and special mention assets at the dates indicated were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ (In thousands) ​ ​ ​ ​ ​ ​ ​ Substandard assets ​ $ 3,067 ​ $ 3,904 Doubtful assets ​ ​ — ​ — Loss assets ​ ​ — ​ — Total classified assets ​ $ 3,067 ​ $ 3,904 Special mention assets ​ $ 1,776 ​ $ 6,931 Foreclosed assets ​ $ 9,104 ​ $ — ​ Allowance for Credit Losses The allowance for credit losses is maintained at a level which, in management’s judgment, is adequate to absorb current expected credit losses inherent in the loan portfolio.
Government and agency ​ 1,439 ​ 6.5 % 1,734 ​ 6.7 % Total securities held to maturity ​ $ 22,096 ​ 100.0 % $ 26,020 ​ 100.0 % ​ The following table sets forth information regarding amortized costs, weighted average yields and maturities of all held to maturity investments. The yields have been computed on a tax equivalent basis.
Government and agency ​ 971 ​ 5.3 % 1,439 ​ 6.5 % Total securities held to maturity ​ $ 18,283 ​ 100.0 % $ 22,096 ​ 100.0 % ​ The following table sets forth information regarding amortized costs, weighted average yields and maturities of all held to maturity investments. The yields have been computed on a tax equivalent basis.
We generally will limit the maximum number of speculative units (units that are not pre-sold) approved for each builder, typically starting with one speculative loan per builder until we develop a relationship with the builder. At December 31, 2024, speculative construction loans consisted of thirteen loans totaling $5.1 million, upon completion.
We generally will limit the maximum number of speculative units (units that are not pre-sold) approved for each builder, typically starting with one speculative loan per builder until we develop a relationship with the builder. At December 31, 2025, speculative construction loans consisted of eighteen loans totaling $9.7 million, upon completion.
In addition to the loans disclosed in the table below, we had loans in process, with scheduled closings, of $6.2 million and $22.9 million at December 31, 2024 and December 31, 2023, respectively.
In addition to the loans disclosed in the table below, we had loans in process, with scheduled closings, of $15.6 million and $6.2 million at December 31, 2025 and December 31, 2024, respectively.
As a Maryland business corporation, Texas Community Bancshares is required to file a personal property and income tax return and pay taxes to the State of Maryland. ​ ITEM 1A. Risk Factors Not applicable, as Texas Community Bancshares is a “smaller reporting company.” ​
As a Maryland business corporation, Texas Community Bancshares is required to file a personal property and income tax return and pay taxes to the State of Maryland. 29 Table of Contents ​ ITEM 1A. Risk Factors Not applicable, as Texas Community Bancshares is a “smaller reporting company.” ​ ITEM 1B. Unresolved Staff Comments None. ​
Government and Agency ​ ​ — ​ — % ​ — ​ — % ​ 1,439 ​ 6.68 % ​ — ​ — % ​ — ​ — % ​ 1,439 ​ 6.68 % Total securities held to maturity ​ $ 365 ​ ​ ​ $ 134 ​ ​ ​ $ 1,439 ​ ​ ​ $ 1,068 ​ ​ ​ $ 19,090 ​ ​ ​ $ 22,096 ​ ​ ​ ​ For additional information regarding our investment securities portfolio, see Note 3 to the notes to consolidated financial statements. 18 Table of Contents During the year ended December 31, 2023, the Company entered into interest rate swap agreements with a total notional amount of $25 million to hedge the risk of changes in the fair value of fixed rate available for sale securities for changes in the Secured Overnight Financing Rate (SOFR).
Government and Agency ​ ​ — ​ — % ​ — ​ — % ​ 971 ​ 6.02 % ​ — ​ — % ​ — ​ — % ​ 971 ​ 6.02 % Total securities held to maturity ​ $ — ​ ​ ​ $ 135 ​ ​ ​ $ 971 ​ ​ ​ $ 1,065 ​ ​ ​ $ 16,112 ​ ​ ​ $ 18,283 ​ ​ ​ ​ For additional information regarding our investment securities portfolio, see Note 3 to the notes to consolidated financial statements. 18 Table of Contents During the year ended December 31, 2023, the Company entered into interest rate swap agreements with a total notional amount of $25 million to hedge the risk of changes in the fair value of fixed rate available for sale securities for changes in the Secured Overnight Financing Rate (SOFR).
While the majority of the Company’s loan portfolio is comprised of fixed rate loans, we have updated our commercial lending terms and are originating more commercial loans with adjustable rates. Loan Portfolio Composition. The following table sets forth the composition of our loan portfolio by type of loan at the dates indicated.
While the majority of the Company’s loan portfolio is comprised of fixed rate loans, we have updated our commercial lending pricing and terms to adjustable rates or maximum fixed-rates of 5-years. Loan Portfolio Composition. The following table sets forth the composition of our loan portfolio by type of loan at the dates indicated.
While scheduled loan payments and income on earning assets are relatively stable sources of funds, deposit inflows and outflows can vary widely and are influenced by prevailing interest rates, market conditions and levels of competition. Deposits. Our deposits are generated primarily from our primary market area. We occasionally attain brokered deposits.
While scheduled loan payments and income on earning assets are relatively stable sources of funds, deposit inflows and outflows can vary widely and are influenced by prevailing interest rates, market conditions and levels of competition. Deposits.
As of December 31, 2024 and 2023, all of our available for sale investment securities are carried at fair value through accumulated other comprehensive loss and our held to maturity securities are carried at cost. 17 Table of Contents The following table summarizes securities available for sale: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ 2024 ​ 2023 ​ ​ ​ Fair ​ Percentage of ​ Fair ​ Percentage of ​ ​ Value Total Value Total ​ Securities available for sale: ​ ​ ​ ​ ​ Residential mortgage-backed ​ $ 9,151 ​ 12.2 % $ 24,925 ​ 26.7 % Collateralized mortgage obligations ​ ​ 46,568 ​ 61.9 % ​ 49,879 ​ 53.4 % State and municipal ​ 13,277 ​ 17.7 % 13,350 ​ 14.3 % Corporate bonds ​ 6,193 ​ 8.2 % 5,173 ​ 5.6 % U.S.
As of December 31, 2025 and 2024, all of our available for sale investment securities are carried at fair value through accumulated other comprehensive loss and our held to maturity securities are carried at cost. 17 Table of Contents The following table summarizes securities available for sale: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ 2025 ​ 2024 ​ ​ ​ Fair ​ Percentage of ​ Fair ​ Percentage of ​ ​ ​ ​ ​ Value ​ ​ ​ Total ​ ​ ​ Value ​ ​ ​ Total ​ Securities available for sale: ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential mortgage-backed ​ $ 5,796 ​ 9.7 % $ 9,151 ​ 12.2 % Collateralized mortgage obligations ​ ​ 35,742 ​ 59.7 % ​ 46,568 ​ 61.9 % State and municipal ​ 8,743 ​ 14.6 % 13,277 ​ 17.7 % Corporate bonds ​ 9,612 ​ 16.0 % 6,193 ​ 8.2 % U.S.
Supervision and Regulation General As a Texas-chartered savings bank, Broadstreet Bank is subject to examination and regulation by the Texas Department of Savings and Mortgage Lending, and is also subject to examination by the Federal Deposit Insurance Corporation as deposit insurer.
Broadstreet Bank has one subsidiary, Mineola Financial Service Corporation, which is currently inactive. Supervision and Regulation General As a Texas-chartered savings bank, Broadstreet Bank is subject to examination and regulation by the Texas Department of Savings and Mortgage Lending, and is also subject to examination by the Federal Deposit Insurance Corporation as deposit insurer.
The allowance for credit losses allocated to each category is not necessarily indicative of future losses in any particular category and does not restrict the use of the allowance to absorb losses in other categories. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ ​ 2024 ​ 2023 ​ ​ ​ ​ ​ ​ Percent of ​ ​ ​ ​ ​ ​ Percent of ​ ​ ​ ​ ​ ​ ​ ​ Allowance ​ Percent of ​ ​ ​ ​ Allowance ​ Percent of ​ ​ ​ ​ ​ ​ in Each ​ Loans in ​ ​ ​ ​ in Each ​ Loans in ​ ​ ​ ​ ​ Category ​ Each ​ ​ ​ Category ​ Each ​ ​ ​ Allowance ​ to Total ​ Category ​ Allowance ​ to Total ​ Category ​ ​ ​ for Credit ​ Allocated ​ to Total ​ for Credit ​ Allocated ​ to Total ​ ​ Losses Allowance Loans Losses Allowance Loans ​ ​ ​ (Dollars in thousands) ​ Real estate loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 Residential & multi-family ​ $ 1,355 ​ 42.1 % 52.5 % $ 1,621 ​ 52.4 % 64.1 % Commercial ​ ​ 605 ​ 18.8 ​ 18.9 ​ ​ 482 ​ 15.6 ​ 14.8 ​ Construction and land 632 ​ 19.6 ​ 18.2 ​ ​ 378 ​ 12.2 ​ 13.3 ​ Farmland 74 ​ 2.3 ​ 3.2 ​ ​ 66 ​ 2.1 ​ 2.9 ​ Agriculture loans 1 ​ — ​ — ​ ​ 2 ​ 0.1 ​ 0.1 ​ Commercial loans 375 ​ 11.6 ​ 2.1 ​ ​ 441 ​ 14.2 ​ 2.4 ​ Municipalities ​ ​ 83 ​ 2.6 ​ 3.1 ​ ​ 18 ​ 0.6 ​ 0.8 ​ Consumer and other loans 97 ​ 3.0 ​ 1.9 ​ ​ 88 ​ 2.8 ​ 1.7 ​ Total allocated allowance $ 3,222 ​ 100 % 100 % $ 3,096 ​ 100 % 100 % ​ Investment Activities General .
The allowance for credit losses allocated to each category is not necessarily indicative of future losses in any particular category and does not restrict the use of the allowance to absorb losses in other categories. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ ​ 2025 ​ 2024 ​ ​ ​ ​ ​ ​ Percent of ​ ​ ​ ​ ​ ​ Percent of ​ ​ ​ ​ ​ ​ ​ ​ Allowance ​ Percent of ​ ​ ​ ​ Allowance ​ Percent of ​ ​ ​ ​ ​ ​ in Each ​ Loans in ​ ​ ​ ​ in Each ​ Loans in ​ ​ ​ ​ ​ Category ​ Each ​ ​ ​ Category ​ Each ​ ​ ​ Allowance ​ to Total ​ Category ​ Allowance ​ to Total ​ Category ​ ​ ​ for Credit ​ Allocated ​ to Total ​ for Credit ​ Allocated ​ to Total ​ ​ ​ ​ ​ Losses ​ ​ ​ Allowance ​ ​ ​ Loans ​ ​ ​ Losses ​ ​ ​ Allowance ​ ​ ​ Loans ​ ​ ​ (Dollars in thousands) ​ Real estate loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 Residential & multi-family ​ $ 1,399 ​ 40.7 % 49.4 % $ 1,355 ​ 42.1 % 52.5 % Commercial ​ ​ 718 ​ 20.9 ​ 20.1 ​ ​ 605 ​ 18.8 ​ 18.9 ​ Construction and land 591 ​ 17.2 ​ 15.8 ​ ​ 632 ​ 19.6 ​ 18.2 ​ Farmland 152 ​ 4.4 ​ 5.6 ​ ​ 74 ​ 2.3 ​ 3.2 ​ Agriculture loans 1 ​ — ​ — ​ ​ 1 ​ — ​ — ​ Commercial loans 407 ​ 11.8 ​ 2.8 ​ ​ 375 ​ 11.6 ​ 2.1 ​ Municipalities ​ ​ 102 ​ 3.0 ​ 4.8 ​ ​ 83 ​ 2.6 ​ 3.1 ​ Consumer and other loans 70 ​ 2.0 ​ 1.5 ​ ​ 97 ​ 3.0 ​ 1.9 ​ Total allocated allowance $ 3,440 ​ 100 % 100 % $ 3,222 ​ 100 % 100 % ​ Investment Activities General .
Market Area We consider Franklin County, Hopkins County, Smith County, Van Zandt County and Wood County, and contiguous areas, as our primary market area for originating loans and gathering deposits. Our main office and six branch offices are located in these counties including the Tyler, Texas branch in Smith County which opened in the first quarter of 2024.
Market Area We consider our primary market area, for originating loans and gathering deposits, the counties in which our main office and six branch offices are located, which include, Franklin County, Hopkins County, Smith County, Van Zandt County and Wood County, and contiguous areas.
At December 31, 2024, we had $145.6 million of loans secured by one- to four-family real estate, or 49.0% of total loans. The majority of our one-to-four family residential real estate loans are secured by properties located in our primary market area.
At December 31, 2025, we had $140.4 million of loans secured by one- to four-family real estate, or 45.8% of total loans. The majority of our one-to-four family residential real estate loans are secured by properties located in our primary market area.
Broadstreet Bank is subject to comprehensive regulation and examination by the Texas Department of Savings and Mortgage Lending and the Federal Deposit Insurance Corporation and is a member of the Federal Home Loan Bank system.
We offer a variety of deposit accounts, including checking accounts, money market accounts, savings accounts and certificate of deposit accounts. Broadstreet Bank is subject to comprehensive regulation and examination by the Texas Department of Savings and Mortgage Lending and the Federal Deposit Insurance Corporation and is a member of the Federal Home Loan Bank system.
The following table sets forth our loan delinquencies, including nonaccrual loans, by type and amount at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2024 ​ 2023 ​ ​ 30-59 ​ 60-89 ​ 90 Days ​ 30-59 ​ 60-89 ​ 90 Days ​ ​ Days ​ Days ​ or More ​ Days ​ Days ​ or More ​ Past Due Past Due Past Due Past Due Past Due Past Due ​ ​ (In thousands) Real estate loans: ​ ​ ​ ​ ​ ​ 1-4 family residential ​ $ 260 ​ $ 8 ​ $ 25 $ 344 $ 271 $ 137 Multi-family ​ — ​ — ​ — ​ — ​ — ​ — Commercial ​ 301 ​ ​ ​ — ​ — ​ 410 ​ 22 Construction and land ​ — ​ — ​ 301 ​ 808 ​ 1,153 ​ — Farmland ​ — ​ — ​ — ​ — ​ — ​ — Agriculture loans ​ — ​ — ​ — ​ — ​ — ​ — Commercial loans ​ 2 ​ — ​ — ​ — ​ — ​ 8 Consumer and other loans ​ 2 ​ — ​ — ​ — ​ — ​ — Total ​ $ 565 ​ $ 8 ​ $ 326 $ 1,152 $ 1,834 $ 167 ​ Nonperforming Assets.
The following table sets forth our loan delinquencies, including nonaccrual loans, by type and amount at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2025 ​ 2024 ​ ​ 30-59 ​ 60-89 ​ 90 Days ​ 30-59 ​ 60-89 ​ 90 Days ​ ​ Days ​ Days ​ or More ​ Days ​ Days ​ or More ​ ​ ​ ​ Past Due ​ ​ ​ Past Due ​ ​ ​ Past Due ​ ​ ​ Past Due ​ ​ ​ Past Due ​ ​ ​ Past Due ​ ​ (In thousands) Real estate loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ $ 113 ​ $ 49 ​ $ — $ 260 $ 8 $ 25 Multi-family ​ — ​ — ​ — ​ — ​ — ​ — Commercial ​ — ​ — ​ — ​ 301 ​ — ​ — Construction and land ​ — ​ — ​ — ​ — ​ — ​ 301 Farmland ​ — ​ — ​ — ​ — ​ — ​ — Agriculture loans ​ — ​ — ​ — ​ — ​ — ​ — Commercial loans ​ 181 ​ — ​ 1 ​ 2 ​ — ​ — Municipalities ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Consumer and other loans ​ 22 ​ 3 ​ — ​ 2 ​ — ​ — Total ​ $ 316 ​ $ 52 ​ $ 1 $ 565 $ 8 $ 326 ​ 13 Table of Contents Nonperforming Assets.
Maturities are based on the final contractual payment dates and do not reflect the impact of prepayments or early redemptions that may occur. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ ​ ​ Due in One Year ​ One to Five Years ​ Five to Ten Years ​ After Ten Years ​ No Fixed Maturity ​ Total Investment Securities ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Weighted ​ ​ ​ ​ Weighted ​ ​ ​ ​ Weighted ​ ​ ​ ​ Weighted ​ ​ ​ ​ Weighted ​ ​ ​ Amortized ​ Average ​ Amortized ​ Average ​ Amortized ​ Average ​ Amortized ​ Average ​ Amortized ​ Average ​ Amortized ​ Average ​ ​ Cost Yield Cost Yield Cost Yield Cost Yield Cost Yield Cost Yield ​ Securities held to maturity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential mortgage-backed ​ $ — ​ — % $ — ​ — % $ — ​ — % $ — ​ — % $ 19,090 ​ 1.76 % $ 19,090 ​ 1.76 % State and municipal ​ 365 ​ 4.29 % 134 ​ 2.65 % — ​ — % 1,068 ​ 2.20 % — ​ — % 1,567 ​ 2.73 % U.S.
Maturities are based on the final contractual payment dates and do not reflect the impact of prepayments or early redemptions that may occur. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ ​ Due in One Year ​ One to Five Years ​ Five to Ten Years ​ After Ten Years ​ No Fixed Maturity ​ Total Investment Securities ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Weighted ​ ​ ​ ​ Weighted ​ ​ ​ ​ Weighted ​ ​ ​ ​ Weighted ​ ​ ​ ​ Weighted ​ ​ ​ Amortized ​ Average ​ Amortized ​ Average ​ Amortized ​ Average ​ Amortized ​ Average ​ Amortized ​ Average ​ Amortized ​ Average ​ ​ ​ ​ ​ Cost ​ ​ ​ Yield ​ ​ ​ Cost ​ ​ ​ Yield ​ ​ ​ Cost ​ ​ ​ Yield ​ ​ ​ Cost ​ ​ ​ Yield ​ ​ ​ Cost ​ ​ ​ Yield ​ ​ ​ Cost ​ ​ ​ Yield ​ Securities held to maturity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential mortgage-backed ​ $ — ​ — % $ — ​ — % $ — ​ — % $ — ​ — % $ 16,112 ​ 1.74 % $ 16,112 ​ 1.74 % State and municipal ​ — ​ — % 135 ​ 2.66 % — ​ — % 1,065 ​ 4.94 % — ​ — % 1,200 ​ 4.68 % U.S.
Broadstreet Bank is empowered by statute, subject to the limitations contained in those statutes, to take and pay interest on savings and time deposits, to accept demand deposits, to make loans on residential and other real estate, to make consumer and commercial loans, to invest, with certain limitations, in equity securities and in debt obligations of banks and corporations and to provide various other banking services for the benefit of Broadstreet Bank’s customers.
In addition, Broadstreet Bank’s deposit accounts are insured by the Federal Deposit Insurance Corporation to the maximum extent permitted by law, and it has certain enforcement powers over the Bank. 21 Table of Contents Broadstreet Bank is empowered by statute, subject to the limitations contained in those statutes, to take and pay interest on savings and time deposits, to accept demand deposits, to make loans on residential and other real estate, to make consumer and commercial loans, to invest, with certain limitations, in equity securities and in debt obligations of banks and corporations and to provide various other banking services for the benefit of Broadstreet Bank’s customers.
The policy statement also states that a holding company should inform the Federal Reserve Board supervisory staff before redeeming or repurchasing common stock or perpetual preferred stock if the holding company is experiencing financial weaknesses or if the repurchase or redemption would result in a net reduction, at the end of a quarter, in the amount of such equity instruments outstanding compared with the beginning of the quarter in which the redemption or repurchase occurred.
The policy statement also states that a holding company should inform the Federal Reserve Board supervisory staff before redeeming or repurchasing common stock or perpetual preferred stock if the holding company is experiencing financial weaknesses or if the repurchase or redemption would result in a net reduction, at the end of a quarter, in the amount of such equity instruments outstanding compared with the beginning of the quarter in which the redemption or repurchase occurred. 27 Table of Contents These regulatory policies may affect the ability of Texas Community Bancshares to pay dividends, repurchase shares of common stock or otherwise engage in capital distributions.
Under this system of regulation, the regulatory authorities have extensive discretion in connection with their supervisory, enforcement, rulemaking and examination activities and policies, including rules or policies that: establish minimum capital levels; restrict the timing and amount of dividend payments; govern the classification of assets; provide oversight for the adequacy of the allowance for credit losses for regulatory purposes; and establish the timing and amounts of assessments and fees.
Broadstreet Bank also is a member of and owns stock in the Federal Home Loan Bank of Dallas, which is one of the 11 regional banks in the Federal Home Loan Bank System. 20 Table of Contents Under this system of regulation, the regulatory authorities have extensive discretion in connection with their supervisory, enforcement, rulemaking and examination activities and policies, including rules or policies that: establish minimum capital levels; restrict the timing and amount of dividend payments; govern the classification of assets; provide oversight for the adequacy of the allowance for credit losses for regulatory purposes; and establish the timing and amounts of assessments and fees.
We also invest in securities, which have historically consisted primarily of mortgage-backed securities and obligations issued by U.S. government sponsored enterprises and others, state and municipal securities, collateralized mortgage obligations, corporate bonds, and Federal Home Loan Bank stock. We offer a variety of deposit accounts, including checking accounts, money market accounts, savings accounts and certificate of deposit accounts.
We also invest in securities, 5 Table of Contents which have historically consisted primarily of mortgage-backed securities and obligations issued by U.S. government sponsored enterprises and others, state and municipal securities, collateralized mortgage obligations, corporate bonds, and Federal Home Loan Bank stock.
The following table sets forth the distribution of total deposits by account type at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2024 ​ 2023 ​ ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ Average ​ Amount Percent Rate Amount Percent Rate ​ ​ (Dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Noninterest-bearing demand deposits ​ $ 41,465 ​ 12.3 % — % $ 45,538 ​ 14.4 % — % Interest-bearing demand deposits ​ 71,959 ​ 21.4 % ​ 0.66 % ​ 63,581 ​ 20.0 % 0.41 % Regular savings deposits and other deposits ​ 43,266 ​ 12.9 % ​ 0.29 % ​ 49,755 ​ 15.7 % 0.31 % Money market deposits ​ 49,203 ​ 14.7 % ​ 3.26 % ​ 39,672 ​ 12.5 % 3.23 % Certificates of deposit ​ 129,935 ​ 38.7 % ​ 4.31 % ​ 118,695 ​ 37.4 % 3.58 % Total ​ $ 335,828 ​ 100.0 % ​ ​ ​ $ 317,241 100.0 % ​ ​ ​ At December 31, 2024 and 2023, the aggregate amount of uninsured deposits, which includes deposit account balances in excess of $250,000, which is the maximum amount for federal deposit insurance, was $50.3 million and $37.2 million, respectively.
The following table sets forth the distribution of total deposits by account type at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2025 ​ 2024 ​ ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ Amount ​ ​ ​ Percent ​ ​ ​ Rate ​ ​ ​ Amount ​ ​ ​ Percent ​ ​ ​ Rate ​ ​ (Dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Noninterest-bearing demand deposits ​ $ 45,871 ​ 14.0 % ​ — % $ 41,465 ​ 12.3 % — % Interest-bearing demand deposits ​ 60,603 ​ 18.5 % ​ 0.57 % ​ 71,959 ​ 21.4 % 0.66 % Regular savings deposits and other deposits ​ 41,605 ​ 12.7 % ​ 0.38 % ​ 43,266 ​ 12.9 % 0.29 % Money market deposits ​ 46,040 ​ 14.0 % ​ 2.65 % ​ 49,203 ​ 14.7 % 3.26 % Certificates of deposit ​ 133,785 ​ 40.8 % ​ 3.95 % ​ 129,935 ​ 38.7 % 4.31 % Total ​ $ 327,904 ​ 100.0 % ​ ​ ​ $ 335,828 100.0 % ​ ​ ​ At December 31, 2025 and 2024, the aggregate amount of uninsured deposits, which includes deposit account balances in excess of $250,000, which is the maximum amount for federal deposit insurance, was $45.8 million and 19 Table of Contents $50.3 million, respectively.
At December 31, 2024, these loans amounted to $44.6 million, of which $27.8 million were jumbo loans and $16.8 million were conventional loans. Our one-to-four family residential real estate loans are generally underwritten to Freddie Mac guidelines. Substantially all of our residential mortgage loans are fixed-rate loans.
At December 31, 2025, these loans amounted to $42.4 million, of which $14.8 million were jumbo loans with current balances exceeding the 2025 conforming loan limits and $27.6 million were conventional loans. Our one-to-four family residential real estate loans are generally underwritten to Freddie Mac guidelines. Substantially all of our residential mortgage loans are fixed-rate loans.
We have also developed long-term relationships with borrowers who now reside in the northern and eastern sections of the Dallas Metroplex and continue to provide them with financing, including residential construction. At December 31, 2024, five construction loans totaling $3.2 million, upon completion, were in process to individual borrowers in the Metroplex.
We have also developed long-term relationships with borrowers who now reside in the Dallas Fort Worth Metroplex and continue to provide them with financing, including residential construction. At December 31, 2025, ten construction loans totaling $7.5 million, upon completion, were in process to borrowers in the Dallas Fort Worth Metroplex.
At December 31, 2024, the Company had total consolidated assets of $443,457,000, net loans and leases of $293,708,000, deposits of $335,828,000 and stockholders’ equity of $52,108,000. Our executive offices are located at 215 West Broad Street, Mineola, Texas 75773 and our telephone number is (903) 569-2602. Our website address is www.broadstreet.bank .
At December 31, 2025, the Company had total consolidated assets of $429,842,000, net loans and leases of $303,205,000, deposits of $327,904,000 and stockholders’ equity of $53,757,000. Our executive offices are located at 215 West Broad Street, Mineola, Texas 75773 and our telephone number is (903) 569-2602. Our website address is www.broadstreet.bank .
Broadstreet Bank does not know of any practice, condition or violation that may lead to termination of its deposit insurance. Privacy Regulations. Federal regulations generally require that Broadstreet Bank disclose its privacy policy, including identifying with whom it shares a customer’s “non-public personal information,” to customers at the time of establishing the customer relationship and annually thereafter.
Federal regulations generally require that Broadstreet Bank disclose its privacy policy, including identifying with whom it shares a customer’s “non-public personal information,” to customers at the time of 25 Table of Contents establishing the customer relationship and annually thereafter.
Our consumer loan portfolio generally consists of loans secured predominately by used automobiles, recreational vehicles, all-terrain vehicles and boats, as well as share loans secured by a deposit account at Broadstreet Bank. 10 Table of Contents Loan Underwriting Risks Commercial Real Estate Loans.
At December 31, 2025, consumer and other loans were $4.6 million, or 1.5% of total loans. Our consumer loan portfolio generally consists of loans secured predominately by used automobiles, recreational vehicles, all-terrain vehicles and boats, as well as share loans secured by a deposit account at Broadstreet Bank. Loan Underwriting Risks Commercial Real Estate Loans.
For further information regarding our borrowings from the Federal Home Loan Bank of Dallas, see note 8 of the notes to consolidated financial statements. Personnel As of December 31, 2024, we had 60 full-time employees and eight part-time employees. Our employees are not represented by any collective bargaining group. Management believes that we have good working relations with our employees.
For further information regarding our borrowings from the Federal Home Loan Bank of Dallas, see note 9 of the notes to consolidated financial statements. Personnel and Human Capital Resources As of December 31, 2025, we had 61 full-time employees and 10 part-time employees. Our employees are not represented by any collective bargaining group.
The majority of Broadstreet Bank’s loans are currently fixed-rate loans, however the Bank is originating more 5 Table of Contents commercial loans with adjustable rates to diversify our loan portfolio and decrease risk associated with fluctuations in market rates.
The majority of Broadstreet Bank’s loans are currently fixed-rate loans, however the Bank’s pricing and terms for commercial loans have changed to adjustable rates or maximum fixed-rate of 5-years to diversify our loan portfolio and decrease risk associated with fluctuations in market rates.
These loans are generally secured by business assets, such as equipment and accounts receivable. Commercial loans secured by accounts receivable are made with adjustable rates and for terms not to exceed 12 months. Commercial equipment loans are made with fixed-interest rates and for terms generally up to 60 months.
We make commercial loans primarily to small businesses in our market area. These loans are generally secured by business assets, such as equipment and accounts receivable. Commercial loans secured by accounts receivable are made with adjustable rates and for terms not to exceed 12 months.
Individual loan officer approval authorities range up to $200,000. Our Loan Committee has approval authority up to $500,000 on commercial and $750,000 on residential properties. Our Executive Committee has approval authority up to $2.0 million. Our Board of Directors must approve all loans greater than or equal to $2.0 million. These loan approval authorities are established by our loan policy.
Our Executive Committee has approval authority up to $2.5 million. Our Board of Directors must approve all loans greater than or equal to $2.5 million. These loan approval authorities are established by our loan policy.
At December 31, 2024, we had outstanding advances of $49.9 million from the Federal Home Loan Bank of Dallas. At December 31, 2024, we had unused borrowing capacity of $102.4 million with the Federal Home Loan Bank of Dallas.
At December 31, 2025, we had outstanding advances of $45.7 million from the Federal Home Loan Bank of Dallas. At December 31, 2025, we had unused borrowing capacity of $100.3 million with the Federal Home Loan Bank of Dallas.
The following table sets forth information regarding our nonperforming assets. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ 2024 2023 ​ ​ (Dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ Nonaccrual loans: ​ ​ ​ ​ Real estate loans: ​ ​ ​ ​ 1-4 family residential ​ $ 610 ​ $ 497 ​ Multi-family ​ — ​ — ​ Commercial ​ 51 ​ 61 ​ Construction and land ​ 301 ​ — ​ Farmland ​ — ​ — ​ Agriculture loans ​ — ​ — ​ Commercial loans ​ 1,163 ​ 351 ​ Consumer loans ​ — ​ — ​ Total nonaccrual loans ​ $ 2,125 ​ $ 909 ​ ​ ​ ​ ​ ​ ​ ​ ​ Accruing loans past due 90 days or more ​ — ​ 30 ​ Other nonperforming loans under 90 days past due ​ ​ 135 ​ ​ 241 ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate owned: ​ ​ ​ ​ 1-4 family residential ​ — ​ — ​ Multi-family ​ — ​ — ​ Commercial ​ — ​ 162 ​ Construction and land ​ — ​ — ​ Bank owned property held for sale ​ 480 ​ — ​ Total real estate owned ​ 480 ​ 162 ​ ​ ​ ​ ​ ​ ​ ​ ​ Total nonperforming assets ​ $ 2,740 ​ $ 1,342 ​ ​ ​ ​ ​ ​ ​ ​ ​ Total nonperforming loans to total loans ​ 0.76 % 0.33 % Total nonaccruing loans to total loans ​ 0.72 % 0.32 % Total nonperforming assets to total assets ​ 0.62 % 0.30 % ​ 14 Table of Contents Classified Assets .
The following table sets forth information regarding our nonperforming assets. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ (Dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ Nonaccrual loans: ​ ​ ​ ​ ​ ​ Real estate loans: ​ ​ ​ ​ ​ ​ 1-4 family residential ​ $ 968 ​ $ 610 ​ Multi-family ​ — ​ — ​ Commercial ​ 42 ​ 51 ​ Construction and land ​ — ​ 301 ​ Farmland ​ — ​ — ​ Agriculture loans ​ — ​ — ​ Commercial loans ​ 1,000 ​ 1,163 ​ Municipalities ​ ​ — ​ ​ — ​ Consumer loans ​ 4 ​ — ​ Total nonaccrual loans ​ $ 2,014 ​ $ 2,125 ​ ​ ​ ​ ​ ​ ​ ​ ​ Accruing loans past due 90 days or more ​ 1 ​ — ​ Other nonperforming loans under 90 days past due ​ ​ 121 ​ ​ 135 ​ ​ ​ ​ ​ ​ ​ ​ ​ Real estate owned: ​ ​ ​ ​ ​ 1-4 family residential ​ — ​ — ​ Multi-family ​ 5,749 ​ — ​ Commercial ​ — ​ — ​ Construction and land ​ 3,355 ​ — ​ Bank owned property held for sale ​ 167 ​ 480 ​ Total real estate owned ​ 9,271 ​ 480 ​ ​ ​ ​ ​ ​ ​ ​ ​ Total nonperforming assets ​ $ 11,407 ​ $ 2,740 ​ ​ ​ ​ ​ ​ ​ ​ ​ Total nonperforming loans to total loans ​ 0.70 % 0.76 % Total nonaccruing loans to total loans ​ 0.66 % 0.72 % Total nonperforming assets to total assets ​ 2.65 % 0.62 % ​ Classified Assets .
At December 31, 2024, our construction portfolio also included $4.5 million in commercial real estate construction, $15.4 million in apartment or duplex construction, and $1.5 million in subdivision developments. At December 31, 2024, our largest single family residence construction loan was for $752,000, upon completion.
At December 31, 2025, our construction portfolio also included $5.1 million in commercial real estate construction and development loans, $6.3 million in apartment or duplex construction, and $2.2 million in subdivision developments. At December 31, 2025, our largest single family residence construction loan was a speculative construction loan of $1.2 million, upon completion.
We had no loans held for sale at December 31, 2024 and December 31, 2023, respectively. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2024 ​ 2023 ​ Amount Percent Amount Percent ​ ​ (Dollars in thousands) ​ Real estate loans: ​ ​ ​ 1-4 family residential ​ $ 145,587 49.0 % $ 172,205 60.8 % Multi-family ​ 10,481 3.5 ​ 9,259 3.3 ​ Construction & land ​ 54,136 18.2 ​ 37,526 13.3 ​ Commercial ​ 56,068 18.9 ​ 41,788 14.8 ​ Farmland ​ 9,540 3.2 ​ 8,317 2.9 ​ Agriculture loans ​ 55 0.0 ​ 150 0.1 ​ Commercial loans ​ 6,315 2.1 ​ 6,900 2.4 ​ Municipalities ​ 9,253 3.1 ​ 2,173 0.8 ​ Consumer and other ​ 5,495 1.9 ​ 4,710 1.7 ​ Total loans ​ 296,930 100.0 % 283,028 100.00 % Less: ​ ​ ​ Allowance for losses ​ 3,222 ​ ​ 3,096 ​ ​ Total loans and leases, net ​ $ 293,708 ​ ​ $ 279,932 ​ ​ ​ Contractual Maturities.
We had no loans held for sale at December 31, 2025 and December 31, 2024, respectively. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2025 ​ 2024 ​ ​ ​ ​ Amount ​ ​ ​ Percent ​ ​ ​ Amount ​ ​ ​ Percent ​ ​ (Dollars in thousands) ​ Real estate loans: ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ $ 140,383 45.8 % $ 145,587 49.0 % Multi-family ​ 10,943 3.6 ​ 10,481 3.5 ​ Construction & land ​ 48,372 15.8 ​ 54,136 18.2 ​ Commercial ​ 61,526 20.1 ​ 56,068 18.9 ​ Farmland ​ 17,085 5.6 ​ 9,540 3.2 ​ Agriculture loans ​ 33 0.0 ​ 55 0.0 ​ Commercial loans ​ 8,813 2.8 ​ 6,315 2.1 ​ Municipalities ​ 14,890 4.8 ​ 9,253 3.1 ​ Consumer and other ​ 4,600 1.5 ​ 5,495 1.9 ​ Total loans ​ 306,645 100.0 % 296,930 100.0 % Less: ​ ​ ​ ​ ​ ​ ​ Allowance for losses ​ 3,440 ​ ​ 3,222 ​ ​ Total loans and leases, net ​ $ 303,205 ​ ​ $ 293,708 ​ ​ ​ Contractual Maturities.
At December 31, 2024, our construction and development loans totaled $33.1 million, or 11.2% of our total loan portfolio, in addition to $21.0 million in land loans. At December 31, 2024, $7.7 million of our single-family construction loans were to individuals and $3.9 million were to builders.
At December 31, 2025, our construction and development loans totaled $23.9 million, or 7.8% of our total loan portfolio, in addition to $24.5 million in land loans. At December 31, 2025, $5.7 million of our single-family construction loans were to individuals and $4.6 million were to builders.
The variety of deposit accounts offered allows us to be competitive in obtaining funds and responding to changes in consumer demand. Based on experience, we believe that our deposits are relatively stable. However, the ability to attract and maintain deposits and the rates paid on these deposits, has been and will continue to be significantly affected by market conditions.
The flow of deposits is influenced significantly by general economic conditions, changes in money market and other prevailing interest rates and competition. The variety of deposit accounts offered allows us to be competitive in obtaining funds and responding to changes in consumer demand. Based on experience, we believe that our deposits are relatively stable.
Multi-family loan underwriting and terms are based on commercial real estate loan guidelines. At December 31, 2024, our largest multi-family loan relationship consisted of one loan totaling $7.7 million, which is secured by a townhome apartment complex. At December 31, 2024, all multi-family loans were performing according to their original terms. Construction and Land Loans .
Multi-family loan underwriting and terms are based on commercial real estate loan guidelines. At December 31, 2025, our largest multi-family loan relationship consisted of one loan totaling $7.7 million, which is secured by a townhome apartment complex. This loan was paid off in full in January 2026.
At December 31, 2024, we had $54.1 million in construction and land loans, or 18.2% of total loans. We make construction loans primarily to individuals for the construction of their primary residences and to contractors and builders of single-family homes.
At December 31, 2025, all multi-family loans were performing according to their original terms. Construction and Land Loans . At December 31, 2025, we had $48.4 million in construction and land loans, or 15.8% of total loans. We make construction loans primarily to individuals for the construction of their primary residences and to contractors and builders of single-family homes.
During the year ended 8 Table of Contents December 31, 2024, we derived $194,000 in noninterest income from the facilitation of 35 loan applications for a total of $10.0 million. Commercial Real Estate Loans . At December 31, 2024, we had $56.1 million in commercial real estate loans, or 18.9% of total loans.
During the year ended December 31, 2025, we derived $144,000 in noninterest income from the facilitation of 22 loan applications for a total of $7.7 million. Commercial Real Estate Loans . At December 31, 2025, we had $61.5 million in commercial real estate loans, or 20.1% of total loans.
Consumer loan collections depend on the borrower’s continuing financial stability, and therefore are likely to be adversely affected by various factors, including job loss, divorce, illness or personal bankruptcy. Furthermore, the application of various federal and state laws, including federal and state bankruptcy and insolvency laws, may limit the amount that can be recovered on such loans.
Loan collections depend on the borrower’s continuing financial stability, and therefore are 12 Table of Contents likely to be adversely affected by various factors, including job loss, divorce, illness or personal bankruptcy.
At December 31, 2024 and December 31, 2023, we had no deposits that were uninsured for any reason other than being in excess of the maximum amount for federal deposit insurance. At December 31, 2024 and 2023, the amount of deposits that were brokered was $22.0 million and $12.0 million, respectively. All brokered deposits were fully insured.
At December 31, 2025 and 2024, the aggregate amount of our uninsured certificates of deposit balances in excess of $250,000 was $13.6 million and $10.7 million, respectively. At December 31, 2025 and December 31, 2024, we had no deposits that were uninsured for any reason other than being in excess of the maximum amount for federal deposit insurance.
Depending on the collateral used to secure the loans, commercial loans are generally made in amounts of up to 80% of the value of the collateral securing the loan.
Commercial equipment loans are made with fixed-interest rates and for terms generally up to 60 months based on useful life of the equipment. Depending on the collateral used to secure the loans, commercial loans are generally made in amounts of up to 80% of the value of the collateral securing the loan.
The following table sets forth the maturity of our uninsured certificates of deposit at December 31, 2024. ​ ​ ​ ​ ​ ​ At December 31, ​ 2024 ​ ​ (In thousands) Maturity Period: ​ ​ Three months or less ​ $ 3,361 Over three through six months ​ ​ 3,189 Over six through twelve months ​ ​ 3,148 Over twelve months ​ 999 Total ​ $ 10,697 ​ Borrowings .
The following table sets forth the maturity of our uninsured portion of certificates of deposit at December 31, 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ ​ ​ 2025 ​ ​ (In thousands) Maturity Period: ​ ​ ​ Three months or less ​ $ 5,325 Over three through six months ​ ​ 2,089 Over six through twelve months ​ ​ 5,526 Over twelve months ​ 634 Total ​ $ 13,574 ​ Borrowings .
The following table sets forth activity in our allowance for credit losses on loans for the periods indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the Years Ended ​ ​ December 31, ​ ​ 2024 2023 ​ ​ (Dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses at beginning of year ​ $ 3,096 ​ $ 1,755 ​ Provision for credit losses ​ ​ 269 ​ ​ 329 ​ Charge-offs: ​ ​ ​ ​ ​ ​ ​ Real estate loans: ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ ​ 16 ​ ​ — ​ Multi-family ​ ​ — ​ ​ — ​ Commercial ​ ​ — ​ ​ — ​ Construction and land ​ ​ — ​ ​ — ​ Agriculture loans ​ ​ — ​ ​ — ​ Commercial loans ​ ​ 84 ​ ​ — ​ Consumer loans ​ ​ 28 ​ ​ 44 ​ Consumer Other – Overdrafts ​ ​ 58 ​ ​ 31 ​ Total charge-offs ​ ​ 186 ​ ​ 75 ​ ​ ​ ​ ​ ​ ​ ​ ​ Recoveries: ​ ​ ​ ​ ​ ​ Real estate loans: ​ ​ ​ ​ ​ ​ 1-4 family residential ​ ​ — ​ ​ — ​ Multi-family ​ ​ — ​ ​ — ​ Commercial ​ ​ — ​ ​ — ​ Construction and loan ​ ​ — ​ ​ — ​ Agriculture loans ​ ​ — ​ ​ — ​ Commercial loans ​ ​ — ​ ​ — ​ Consumer loans ​ ​ 43 ​ ​ 9 ​ Total recoveries ​ ​ 43 ​ ​ 9 ​ Net (charge-offs) recoveries ​ ​ (143) ​ ​ (66) ​ Overage from off-balance sheet credit exposures ​ ​ — ​ ​ 53 ​ Adjustment for adoption of CECL methodology ​ ​ — ​ ​ 1,025 ​ Allowance for credit losses at end of year ​ $ 3,222 ​ $ 3,096 ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses to nonperforming loans ​ ​ 142.6 % 267.6 % Allowance for credit losses to total loans outstanding at the end of the year ​ ​ 1.09 % 1.09 % Net (charge-offs) recoveries to average loans outstanding during the year ​ ​ (0.05) % (0.02) % ​ 16 Table of Contents Allocation of Allowance for Credit Losses.
However, regulatory agencies are not directly involved in the process for establishing the allowance for credit losses as the process is our responsibility and any increase or decrease in the allowance is the responsibility of management. 15 Table of Contents The following table sets forth activity in our allowance for credit losses on loans for the periods indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the Years Ended ​ ​ December 31, ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ (Dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses at beginning of year ​ $ 3,222 ​ $ 3,096 ​ Provision for credit losses ​ ​ 736 ​ ​ 269 ​ Charge-offs: ​ ​ ​ ​ ​ ​ ​ Real estate loans: ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ ​ 3 ​ ​ 16 ​ Multi-family ​ ​ — ​ ​ — ​ Commercial ​ ​ — ​ ​ — ​ Construction and land ​ ​ 453 ​ ​ — ​ Agriculture loans ​ ​ — ​ ​ — ​ Commercial loans ​ ​ 8 ​ ​ 84 ​ Municipalities ​ ​ — ​ ​ — ​ Consumer loans ​ ​ 15 ​ ​ 28 ​ Consumer Other – Overdrafts ​ ​ 45 ​ ​ 58 ​ Total charge-offs ​ ​ 524 ​ ​ 186 ​ ​ ​ ​ ​ ​ ​ ​ ​ Recoveries: ​ ​ ​ ​ ​ ​ ​ Real estate loans: ​ ​ ​ ​ ​ ​ ​ 1-4 family residential ​ ​ — ​ ​ — ​ Multi-family ​ ​ — ​ ​ — ​ Commercial ​ ​ — ​ ​ — ​ Construction and loan ​ ​ — ​ ​ — ​ Agriculture loans ​ ​ — ​ ​ — ​ Commercial loans ​ ​ — ​ ​ — ​ Municipalities ​ ​ — ​ ​ — ​ Consumer loans ​ ​ 6 ​ ​ 43 ​ Total recoveries ​ ​ 6 ​ ​ 43 ​ Net (charge-offs) recoveries ​ ​ (518) ​ ​ (143) ​ Allowance for credit losses at end of year ​ $ 3,440 ​ $ 3,222 ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses to nonperforming loans ​ ​ 161.0 % 142.6 % Allowance for credit losses to total loans outstanding at the end of the year ​ ​ 1.12 % 1.09 % Net (charge-offs) recoveries to average loans outstanding during the year ​ ​ (0.17) % (0.05) % ​ 16 Table of Contents Allocation of Allowance for Credit Losses.
Commercial construction and land development loans generally can be made with maximum loan-to-value of 80% of the estimated market value of the completed project or loan-to-cost of 80% of the estimated construction costs of the completed project. Before making a commitment to fund a construction loan, we require an appraisal of the property by an independent licensed appraiser.
Commercial construction and land development loans generally can be made with maximum loan-to-value of 80% of the estimated market value of the completed project or loan-to-cost of 80% of the estimated construction costs of the completed project, whichever is less.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe Chief Operating Officer (COO) along with the ISO are responsible for developing and implementing our Program and reporting on cybersecurity matters to the Board. Our COO and ISO have over 25 years of combined related experience. We view cybersecurity as a shared responsibility, and we periodically perform simulations and tabletop exercises and incorporate external resources and advisors as needed.
Biggest changeThe Chief Operating Officer (COO) along with the ISO are responsible for developing and implementing our Program and reporting on cybersecurity matters to the Board. Our COO and ISO have over 25 years of combined related 30 Table of Contents experience.
The ISO also provides periodic cybersecurity updates to the Board of Directors. We face a number of cybersecurity risks in connection with our business. Although such risks have not materially affected us, including our business strategy, results of operations, or financial condition, to date.
The COO also provides periodic cybersecurity updates to the Board of Directors. We face a number of cybersecurity risks in connection with our business. Although such risks have not materially affected us, including our business strategy, results of operations, or financial condition, to date.
Disruptions in our information technology systems or a compromise of security with respect to our systems could adversely affect our operating results by limiting our ability to effectively monitor and control our operations, adjust to changing market conditions, implement strategic initiatives or support our customer transactions and our business may be adversely affected by security breaches at third-parties. ​
Disruptions in our information technology systems or a compromise of security with respect to our systems could adversely affect our operating results by limiting our ability to effectively monitor and control our operations, adjust to changing market conditions, implement strategic initiatives or support our customer transactions and our business may be adversely affected by security breaches at third-parties. ​ ​ 31 Table of Contents
The Company’s Compliance Committee and Information Security Committee along with the company’s Board of Directors oversee areas 30 Table of Contents of operational risk such as information technology activities; risks associated with development, infrastructure, and cybersecurity; oversight of information security risk assessments, strategies, policies, and programs; and disaster recovery, business continuity, and incident response process.
The Company’s Compliance Committee and Information Security Committee along with the company’s Board of Directors oversee areas of operational risk such as information technology activities; risks associated with development, infrastructure, and cybersecurity; oversight of information security risk assessments, strategies, policies, and programs; and disaster recovery, business continuity, and incident response process.
The Information Security Officer (“ISO”) regularly updates the Board, management and any appropriate committees on the information and cybersecurity risks, threats, exposures, and mitigation measures. The Company’s incident response process is periodically tested and includes cybersecurity scenarios.
The Information Security Officer (“ISO”) reports regularly to the Board, management and any appropriate committees on the information and cybersecurity risks, threats, exposures, and mitigation measures. The Company’s incident response process is periodically tested and includes cybersecurity scenarios.
The Program leverages recognized security frameworks, such as the National Institute of Standards and Technology (NIST), Financial Services Information Sharing and Analysis Center (FS-ISAC), Federal Financial Institutions Examination Council (FFIEC), and Ransomware Self-Assessment Tool (R-SAT), to organize, improve, and assess the program and to better manage and reduce cybersecurity risk. The Program is assessed and updated annually and as needed.
The Program leverages recognized security frameworks, such as the National Institute of Standards and Technology (NIST), Financial Services Information Sharing and Analysis Center (FS-ISAC), and Federal Financial Institutions Examination Council (FFIEC) to organize, improve, and assess the program and to better manage and reduce cybersecurity risk. The Program is assessed and updated annually and as needed.
The Program is overseen by the Information Security Committee, Board of Directors, and Compliance Committee. The Company’s Board of Directors monitors the Program including policies and practices.
We view cybersecurity as a shared responsibility, and we periodically perform simulations and tabletop exercises and incorporate external resources and advisors as needed. The Program is overseen by the Information Security Committee, Board of Directors, and Compliance Committee. The Company’s Board of Directors monitors the Program including policies and practices.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe following table sets forth information regarding our offices as of December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Leased or ​ Year Acquired ​ Net Book Value of Location Owned or Leased Real Property ​ ​ ​ ​ ​ ​ (In thousands) Main Office: ​ ​ ​ ​ 215 West Broad Street Mineola, TX 75773 ​ Own ​ 1964 ​ $ 1,724 ​ ​ ​ ​ ​ ​ ​ ​ Branch Offices: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1224 North Pacific Street Mineola, TX 75773 Lease 1999 ​ $ 81 ​ ​ ​ ​ ​ ​ ​ ​ 415 West Frank Street Grand Saline, TX 75140 Own 2006 ​ $ 971 ​ ​ ​ ​ ​ ​ ​ ​ 500 South Main Street Winnsboro, TX 75494 Own 2005 ​ $ 1,231 ​ ​ ​ ​ ​ ​ ​ ​ 304 South Main Street Lindale, TX 75771 Own 2017 ​ $ 4,174 ​ ​ ​ ​ ​ ​ ​ ​ 500 West Pine Street Edgewood, TX 75117 Own 2018 ​ $ 825 ​ ​ ​ ​ ​ ​ ​ ​ 917 East Southeast Loop 323 Tyler, TX 75701 ​ Own ​ 2023 ​ $ 2,466 ​ ​ ​ ​ ​ ​ ​ ​ ​ In 2024, the Company listed two buildings for sale that were purchased for future expansion.
Biggest changeThe following table sets forth information regarding our offices as of December 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Leased or ​ Year Acquired ​ Net Book Value of Location ​ ​ ​ Owned ​ ​ ​ or Leased ​ ​ ​ Land, Building & Equipment ​ ​ ​ ​ ​ ​ (In thousands) Main Office: ​ ​ ​ ​ ​ ​ ​ 215 West Broad Street Mineola, TX 75773 ​ Own ​ 1964 ​ $ 1,668 ​ ​ ​ ​ ​ ​ ​ ​ Corporate Office: ​ ​ ​ ​ ​ ​ ​ 5755 Eagles Nest Blvd Tyler, TX 75703 ​ Lease ​ 2025 ​ $ 34 ​ ​ ​ ​ ​ ​ ​ ​ Branch Offices: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1224 North Pacific Street Mineola, TX 75773 Lease 1999 ​ $ 75 ​ ​ ​ ​ ​ ​ ​ ​ 415 West Frank Street Grand Saline, TX 75140 Own 2006 ​ $ 935 ​ ​ ​ ​ ​ ​ ​ ​ 500 South Main Street Winnsboro, TX 75494 Own 2005 ​ $ 1,191 ​ ​ ​ ​ ​ ​ ​ ​ 304 South Main Street Lindale, TX 75771 Own 2017 ​ $ 4,062 ​ ​ ​ ​ ​ ​ ​ ​ 500 West Pine Street Edgewood, TX 75117 Own 2018 ​ $ 773 ​ ​ ​ ​ ​ ​ ​ ​ 917 East Southeast Loop 323 Tyler, TX 75701 ​ Own ​ 2023 ​ $ 2,412 ​ ​ ​ ​ ​ ​ ​ ​ ​ In 2025, the Company leased corporate office space in Tyler, Texas for employee and customer accessibility and began due diligence for purchase of land in Terrell, Texas for a new branch.
ITEM 2. Properties As of December 31, 2024, the net book value of our land, building and equipment was $11.5 million.
ITEM 2. Properties As of December 31, 2025, the net book value of our land, building and equipment was $11.5 million.
Removed
These properties are now classified as other real estate owned. In the first quarter of 2024, we opened a new branch in Tyler, Texas and moved into the new branch building located at the same location in Lindale. We believe that all other current facilities are adequate to meet our present and foreseeable needs, subject to possible future expansion. ​
Added
At December 31, 2025, the book value of the land being purchased was $117,000 and the Company closed on the property on January 5, 2026 for a purchase price of $1.5 million. We believe that all other current facilities are adequate to meet our present and foreseeable needs with future expansion in Terrell, Texas. ​

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeAt December 31, 2024, we were not a party to any pending legal proceedings that we believe would have a material adverse effect on our financial condition, results of operations or cash flows. ​ ITEM 4. Mine Safety Disclosures Not applicable. 31 Table of Contents PART II
Biggest changeAny liability that could arise with respect to this action is not reasonably estimable at December 31, 2025 and in the opinion of the Company, any such liability will not have a material adverse effect on the Company’s consolidated financial statements. ​ ITEM 4. Mine Safety Disclosures Not applicable. 32 Table of Contents PART II
Added
The Company has been named a defendant in a legal action arising from the conduct of its normal business and employment activities. Management believes that the legal action against the Company is without merit and intends to defend against it.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe program has no stated expiration date. ​ The following table summarizes the Company’s repurchases of its outstanding shares of common stock during the quarter ended December 31, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Number of Shares Purchased ​ Average Price Paid Per Share ​ Total Number of Shares Purchased as Part of Publicly Announced Plans ​ Maximum Number of Shares That May Yet be Purchased Under the Plans October 1, 2024 - October 31, 2024 ​ 5,000 ​ $ 15.05 ​ ​ 5,000 ​ ​ 76,385 November 1, 2024 - November 30, 2024 ​ 10,000 ​ ​ 15.02 ​ ​ 10,000 ​ ​ 66,385 December 1, 2024 - December 31, 2024 ​ 22,500 ​ ​ 15.09 ​ ​ 22,500 ​ ​ 43,885 Total ​ 37,500 ​ $ 15.07 ​ ​ 37,500 ​ ​ ​ ​ There were no sales of unregistered securities during the year ended December 31, 2024. ​ ITEM 6.
Biggest changeThe program has no stated expiration date. ​ The following table summarizes the Company’s repurchases of its outstanding shares of common stock during the quarter ended December 31, 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Number of Shares Purchased ​ ​ ​ ​ ​ Average Price Paid Per Share ​ ​ ​ ​ ​ Total Number of Shares Purchased as Part of Publicly Announced Plans ​ ​ ​ ​ ​ Maximum Number of Shares That May Yet be Purchased Under the Plans October 1, 2025 - October 31, 2025 ​ 23,000 ​ ​ 16.22 ​ ​ 23,000 ​ ​ 27,468 November 1, 2025 - November 30, 2025 ​ 18,000 ​ ​ 16.01 ​ ​ 18,000 ​ ​ 9,468 December 1, 2025 - December 31, 2025 ​ 9,468 ​ ​ 16.35 ​ ​ 9,468 ​ ​ - Total ​ 50,468 ​ $ 16.17 ​ ​ 50,468 ​ ​ ​ ​ There were no sales of unregistered securities during the year ended December 31, 2025. ​ ITEM 6.
ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The common stock of Texas Community Bancshares is listed on The Nasdaq Capital Market under the symbol “TCBS”. As of March 11, 2025, we had 553 stockholders of record, and 3,061,652 shares of common stock outstanding.
ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The common stock of Texas Community Bancshares is listed on The Nasdaq Capital Market under the symbol “TCBS”. As of March 19, 2026, we had 535 stockholders of record, and 2,885,392 shares of common stock outstanding.
On May 16, 2023, the Company announced a program to repurchase up to 164,842 shares of the Company’s outstanding common stock or approximately 5% of the shares then outstanding. On November 9, 2023, after completing the purchase of 164,842 shares, the Company announced a second repurchase program of 161,316 shares, or approximately 5% of the shares outstanding.
On May 16, 2023, the Company announced a program to repurchase up to 164,842 shares of the Company’s outstanding common stock or approximately 5% of the shares then outstanding.
Added
On November 9, 2023, after completing the purchase of 164,842 shares, the Company announced a second repurchase program of 161,316 shares, or approximately 5% of the shares then outstanding, which was completed on April 14, 2025. On February 27, 2025, the Company announced a third repurchase program of 153,083 shares, or approximately 5% of the shares then outstanding.
Added
On December 16, 2025, after completing the purchase of 153,083 shares, the Company announced a fourth repurchase program of 144,364 shares, or approximately 5% of the shares then outstanding.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changePenalties related to unrecognized tax benefits are classified as income tax expense. 35 Table of Contents Selected Financial Data The following selected consolidated financial data sets forth certain financial highlights of the Company and should be read in conjunction with the audited consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K. ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ 2024 2023 ​ ​ (In thousands) Selected Financial Condition Data: ​ ​ ​ ​ Total assets ​ $ 443,457 ​ $ 452,044 Cash and cash equivalents ​ ​ 13,290 ​ ​ 13,060 Interest bearing deposits in banks ​ 9,720 ​ 12,298 Securities available for sale ​ 75,189 ​ 93,327 Securities held to maturity ​ 22,096 ​ 26,020 Loans and leases receivable, net ​ 293,708 ​ 279,932 Premises and equipment, net ​ 11,526 ​ 11,609 Bank owned life insurance ​ 6,370 ​ 6,238 Other real estate owned ​ 480 ​ 162 Restricted investments carried at cost ​ 4,252 ​ 3,909 Core deposit intangible ​ 132 ​ 265 Total deposits ​ 335,828 ​ 317,241 Advances from the Federal Home Loan Bank ​ 49,878 ​ 76,896 Total shareholders' equity ​ 52,108 ​ 53,689 ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ 2024 2023 ​ ​ (In thousands) Selected Operating Data: ​ ​ ​ ​ Interest income ​ $ 22,452 ​ ​ 18,978 Interest expense ​ ​ 9,902 ​ ​ 7,914 Net interest income ​ ​ 12,550 ​ 11,064 Provision for credit losses ​ ​ 158 ​ 356 Net interest income after provision for credit losses ​ ​ 12,392 ​ 10,708 Noninterest (loss) income ​ ​ (1,903) ​ 352 Noninterest expense ​ ​ 12,270 ​ 11,997 Loss before income taxes ​ ​ (1,781) ​ (937) Income tax benefit ​ ​ (476) ​ (204) Net loss $ (1,305) ​ $ (733) ​ 36 Table of Contents ​ ​ ​ ​ ​ ​ ​ At or For the Years Ended ​ ​ December 31, ​ ​ 2024 2023 ​ ​ ​ ​ ​ Performance Ratios: ​ ​ Return on average assets ​ (0.29) % (0.17) % Return on average equity ​ (3.08) % (1.75) % Interest rate spread (1) ​ 2.51 % 2.27 % Net interest margin (2) ​ 2.98 % 2.73 % Noninterest expense to average assets 2.73 % 2.79 % Efficiency ratio (3) 115.24 % 105.09 % Average interest-earning assets to average interest-bearing liabilities 120.01 % 123.43 % ​ ​ ​ ​ ​ ​ Capital Ratios: ​ Average equity to average assets 9.44 % 9.77 % Total capital to risk-weighted assets (4) 15.60 % 16.73 % Tier 1 capital to risk-weighted assets (4) 14.59 % 15.65 % Common equity tier 1 capital to risk-weighted assets (4) 14.59 % 15.65 % Tier 1 capital to average assets 10.84 % 10.76 % ​ ​ ​ ​ ​ ​ Asset Quality Ratios: ​ Allowance for credit losses as a percentage of total loans 1.09 % 1.09 % Allowance for credit losses as a percentage of nonperforming loans 142.57 % 267.59 % Allowance for credit losses as a percentage of nonaccrual loans 151.62 % 340.59 % Nonaccrual loans as a percentage of total loans 0.72 % 0.32 % Net (charge-offs) recoveries to average outstanding loans during the year (0.05) % (0.02) % Nonperforming loans as a percentage of total loans 0.76 % 0.41 % Nonperforming loans as a percentage of total assets 0.51 % 0.26 % Total nonperforming assets as a percentage of total assets 0.62 % 0.30 % ​ ​ ​ ​ ​ ​ Other Data: ​ Number of offices ​ 7 6 ​ Number of full-time employees ​ 60 62 ​ Number of part-time employees ​ 8 5 ​ (1) Represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
Biggest changePenalties related to unrecognized tax benefits are classified as income tax expense. 36 Table of Contents Selected Financial Data The following selected consolidated financial data sets forth certain financial highlights of the Company and should be read in conjunction with the audited consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ At December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Selected Financial Condition Data (Amounts in thousands): ​ ​ ​ ​ ​ ​ Total assets ​ $ 429,842 ​ $ 443,457 Cash and cash equivalents ​ ​ 6,450 ​ ​ 13,290 Interest bearing deposits in banks ​ 5,509 ​ 9,720 Securities available for sale ​ 59,893 ​ 75,189 Securities held to maturity ​ 18,283 ​ 22,096 Loans and leases receivable, net ​ 303,205 ​ 293,708 Premises and equipment, net ​ 11,459 ​ 11,526 Bank owned life insurance ​ 6,544 ​ 6,370 Other real estate owned ​ 9,271 ​ 480 Restricted investments carried at cost ​ 2,773 ​ 3,715 Core deposit intangible ​ — ​ 132 Total deposits ​ 327,904 ​ 335,828 Advances from the Federal Home Loan Bank ​ 45,669 ​ 49,878 Total shareholders' equity ​ 53,757 ​ 52,108 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Twelve Months Ended December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Selected Operating Data (Amounts in thousands): ​ ​ ​ ​ ​ ​ Interest income ​ $ 22,491 ​ ​ 22,452 Interest expense ​ ​ 9,177 ​ ​ 9,902 Net interest income ​ ​ 13,314 ​ 12,550 Provision for credit losses ​ ​ 831 ​ 158 Net interest income after provision for credit losses ​ ​ 12,483 ​ 12,392 Noninterest income (loss) ​ ​ 3,079 ​ (1,903) Noninterest expense ​ ​ 12,198 ​ 12,270 Income (Loss) before income taxes ​ ​ 3,364 ​ (1,781) Income tax expense (benefit) ​ ​ 522 ​ (476) Net income (loss) $ 2,842 ​ $ (1,305) ​ 37 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the Years Ended ​ ​ December 31, ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ ​ ​ Performance Ratios: ​ ​ ​ ​ Return on average assets ​ 0.65 % (0.29) % Return on average equity ​ 6.18 % (3.08) % Interest rate spread (1) ​ 2.80 % 2.51 % Net interest margin (2) ​ 3.26 % 2.98 % Noninterest expense to average assets 2.77 % 2.73 % Efficiency ratio (3) 74.41 % 115.24 % Average interest-earning assets to average interest-bearing liabilities 120.45 % 120.01 % ​ ​ ​ ​ ​ ​ Capital Ratios: ​ ​ ​ Average equity to average assets 10.45 % 9.44 % Total capital to risk-weighted assets 16.67 % 15.60 % Tier 1 capital to risk-weighted assets 15.57 % 14.59 % Common equity tier 1 capital to risk-weighted assets 15.57 % 14.59 % Tier 1 capital to average assets 11.74 % 10.84 % ​ ​ ​ ​ ​ ​ Asset Quality Ratios: ​ ​ ​ Allowance for credit losses as a percentage of total loans 1.12 % 1.09 % Allowance for credit losses as a percentage of nonperforming loans 161.05 % 142.57 % Allowance for credit losses as a percentage of nonaccrual loans 170.80 % 151.62 % Nonaccrual loans as a percentage of total loans 0.66 % 0.72 % Net (charge-offs) recoveries to average outstanding loans during the year (0.17) % (0.05) % Nonperforming loans as a percentage of total loans 0.70 % 0.76 % Nonperforming loans as a percentage of total assets 0.50 % 0.51 % Total nonperforming assets as a percentage of total assets 2.65 % 0.62 % ​ ​ ​ ​ ​ ​ Other Data: ​ ​ ​ Number of offices ​ 7 7 ​ Number of full-time employees ​ 61 60 ​ Number of part-time employees ​ 10 8 ​ (1) Represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
We have implemented the following strategies to manage our interest rate risk: ● maintaining capital levels that exceed the thresholds for well-capitalized status under federal regulations; ● maintaining a high level of liquidity; ● growing our volume of core deposit accounts; 44 Table of Contents ● managing our investment securities portfolio so as to reduce the average maturity and effective life of the portfolio; ● continuing to diversify our investment securities portfolio by continuing to add collateralized mortgage obligations (CMOs) and subordinated debt; ● managing our borrowings from the Federal Home Loan Bank of Dallas; ● managing our loan services by adding wholesale lending products to continue to offer these services while reducing interest rate risk in the loan portfolio; ● continuing to diversify our loan portfolio by adding more commercial-related loans, which typically have shorter maturities, adjustable rates, and fee income; and ● Derivatives.
We have implemented the following strategies to manage our interest rate risk: ● maintaining capital levels that exceed the thresholds for well-capitalized status under federal regulations; ● maintaining a high level of liquidity; ● growing our volume of core deposit accounts; ● managing our investment securities portfolio so as to reduce the average maturity and effective life of the portfolio; 46 Table of Contents ● diversifying our securities portfolio by continuing to add collateralized mortgage obligations (CMOs) and subordinated debt; ● managing our borrowings from the Federal Home Loan Bank of Dallas; ● managing our loan services by adding wholesale lending products to continue to offer these services while reducing interest rate risk in the loan portfolio; ● continuing to diversify our loan portfolio by adding more commercial loans, which typically have shorter maturities, adjustable rates, and fee income; and ● Derivatives.
For additional information, see the consolidated statements of cash flows for the years ended December 31, 2024 and 2023 included as part of the consolidated financial statements appearing elsewhere in this annual report. We are committed to maintaining a strong liquidity position. We monitor our liquidity position on a daily basis.
For additional information, see the consolidated statements of cash flows for the years ended December 31, 2025 and 2024 included as part of the consolidated financial statements appearing elsewhere in this annual report. We are committed to maintaining a strong liquidity position. We monitor our liquidity position on a daily basis.
(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (3) Net interest margin represents net interest income divided by average total interest-earning assets. 40 Table of Contents Rate/Volume Analysis The following tables present the effects of changing rates and volumes on our net interest income for the periods indicated.
(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (3) Net interest margin represents net interest income divided by average total interest-earning assets. 42 Table of Contents Rate/Volume Analysis The following tables present the effects of changing rates and volumes on our net interest income for the periods indicated.
In 2024, we sold a block of 111 residential loans totaling $24.3 million to reallocate into commercial real estate and other categories to accelerate diversifying the portfolio with a goal of increasing our interest income and mitigating interest rate risk.
In 2024, we sold a block of 111 residential loans totaling $24.3 million to reallocate into commercial real estate and other categories to accelerate diversification of the portfolio with a goal of increasing our interest income and mitigating interest rate risk.
Management is not aware of any conditions or events since the most recent notification of well-capitalized status that would change our category. See Note 17 of the notes to consolidated financial statements. Off-Balance Sheet Arrangements Commitments.
Management is not aware of any conditions or events since the most recent notification of well-capitalized status that would change our category. See Note 18 of the notes to consolidated financial statements. Off-Balance Sheet Arrangements Commitments.
Net interest income is the difference between the interest income we earn on our interest-earning assets and the interest we pay on our interest-bearing liabilities. Our results of operations also are affected by our provisions for credit losses, non-interest income and non-interest expense.
Net interest income is the difference between the interest income we earn on our interest-earning assets and the interest we pay on our interest-bearing liabilities. Our results of operations also are affected by our provision for credit losses, non-interest income and non-interest expense.
As an “emerging growth company” we may delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. We determined not to take advantage of the benefits of this extended transition period. 34 Table of Contents The following represent our critical accounting policies: Allowance for Credit Losses .
As an “emerging growth company” we may delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. We determined not to take advantage of the benefits of this extended transition period. The following represent our critical accounting policies: Allowance for Credit Losses .
We also invest in securities, which 32 Table of Contents have historically consisted primarily of mortgage-backed securities and obligations issued by U.S. government sponsored enterprises and others, state and municipal securities, collateralized mortgage obligations, corporate bonds, and Federal Home Loan Bank stock. We offer a variety of deposit accounts, including checking accounts, savings accounts and certificate of deposit accounts.
We also invest in securities, which have historically consisted primarily of mortgage-backed securities and obligations issued by U.S. government sponsored enterprises and others, state and municipal securities, collateralized mortgage obligations, corporate bonds, and Federal Home Loan Bank stock. We offer a variety of deposit accounts, including checking accounts, savings accounts and certificate of deposit accounts.
(2) Represents net interest income as a percentage of average interest-earning assets. (3) Represents noninterest expenses divided by the sum of net interest income and noninterest income. ​ Comparison of Financial Condition at December 31, 2024 and December 31, 2023 Total Assets.
(2) Represents net interest income as a percentage of average interest-earning assets. (3) Represents noninterest expenses divided by the sum of net interest income and noninterest income. ​ Comparison of Financial Condition at December 31, 2025 and December 31, 2024 Total Assets.
The increased yield on loans is primarily due to increased market interest rates, higher loan rates and fees primarily from an increase in commercial real estate as part of the execution of a strategic restructuring of the loan portfolio in which $24.3 million in residential loans were sold and replaced with other higher-yielding loans.
The increased yield on loans is primarily due to changes in market interest rates, higher loan rates and fees primarily from an increase in commercial real estate, and a decrease in residential real estate as part of the execution of a strategic restructuring of the loan portfolio in which $24.3 million in residential loans were sold and replaced with other higher-yielding loans in 2024.
We are being cautiously optimistic with our lending and strategic decisions, staying focused on long-term goals and taking advantage of opportunities while being diligent about recognizing and mitigating risk. At December 31, 2024, our allowance for credit losses to total loans and leases was 1.09%. The Company continues to monitor rates and loan demand weekly and align pricing accordingly.
We are being cautiously optimistic with our lending and strategic decisions, staying focused on long-term goals and taking advantage of opportunities while being diligent about recognizing and mitigating risk. At December 31, 2025, our allowance for credit losses to total loans and leases was 1.12%. The Company continues to monitor rates and loan demand weekly and align pricing accordingly.
The amount of dividends that Broadstreet Bank may declare and pay to Texas Community Bancshares, Inc. is governed by applicable banking laws and regulations. At December 31, 2024, Texas Community Bancshares, Inc. (on a stand-alone unconsolidated basis) had liquid assets totaling $7.8 million. Liquidity management and asset quality continue to be high priorities.
The amount of dividends that Broadstreet Bank may declare and pay to Texas Community Bancshares, Inc. is governed by applicable banking laws and regulations. At December 31, 2025, Texas Community Bancshares, Inc. (on a stand-alone unconsolidated basis) had liquid assets totaling $3.7 million. Liquidity management and asset quality continue to be high priorities.
Bank owned life insurance provides us with non-interest income that is nontaxable. Federal regulations generally limit our investment in bank owned life insurance to 25% of our Tier 1 capital plus our allowance for credit losses. At December 31, 2024, our investment in bank owned life insurance was $6.4 million, which was within this investment limit.
Bank owned life insurance provides us with non-interest income that is nontaxable. Federal regulations generally limit our investment in bank owned life insurance to 25% of our Tier 1 capital plus our allowance for credit losses. At December 31, 2025, our investment in bank owned life insurance was $6.5 million, which was within this investment limit.
Although the majority of our loans were fixed-rate loans, with the growth in the commercial lending portfolio in 2024, many of our originations were loans with adjustable rates.
Although the majority of our loans were fixed-rate loans, with the growth in the commercial lending portfolio in 2025, many of our originations were loans with adjustable rates.
The following are the various liquidity sources we had available at December 31, 2024 that we could use as needed: ● FHLB borrowing capacity of $102.4 million ● $18 million in credit lines with 2 correspondent banks ● Federal Reserve discount window ● Qwickrate (listed) CD Program ● Brokered deposits ● The ability to sell securities. ● The ability to sell a group of loans in the secondary market on an as needed basis ● The ability to sell a portion of our BOLI assets At December 31, 2024, Broadstreet Bank exceeded all of its regulatory capital requirements, and was categorized as well-capitalized at that date.
The following are the various liquidity sources we had available at December 31, 2025 that we could use as needed: ● FHLB borrowing capacity of $100.3 million ● $8 million in credit lines with 2 correspondent banks ● Federal Reserve discount window ● Qwickrate (listed) CD Program ● Brokered deposits ● The ability to sell securities. ● The ability to sell a group of loans in the secondary market on an as needed basis ● The ability to sell a portion of our BOLI assets At December 31, 2025, Broadstreet Bank exceeded all of its regulatory capital requirements, and was categorized as well-capitalized at that date.
Our Risk Management and Interest Rate Risk Management Officer is responsible for evaluating the interest rate risk inherent in our assets and liabilities, for determining the level of risk that is appropriate, given our business strategy, operating environment, capital, liquidity and performance objectives, and for managing this risk consistent with the policy and guidelines approved by our board of directors.
Our Asset/Liability Committee is responsible for evaluating the interest rate risk inherent in our assets and liabilities, for determining the level of risk that is appropriate, given our business strategy, operating environment, capital, liquidity and performance objectives, and for managing this risk consistent with the policy and guidelines approved by our board of directors.
We have originated one-to-four family residential mortgage loans secured primarily by owner-occupied properties primarily located in the northern and eastern sections of the Dallas Metroplex for over ten years and continue to do so primarily through existing relationships and word-of-mouth referrals.
We have originated one-to-four family residential mortgage loans secured primarily by owner-occupied properties located in the Dallas Fort Worth Metroplex for over ten years and continue to do so primarily through existing relationships and word-of-mouth referrals.
The increase in population in our market area as well as the expansion in Smith county has provided opportunities for 33 Table of Contents residential mortgage lending, construction and land lending, and commercial real estate lending.
The increase in population in our market area as well as the expansion in Smith county has provided opportunities for residential mortgage lending, construction and land lending, and commercial real estate lending.
Such commitments are subject to the same credit policies and approval process accorded to loans we make. At December 31, 2024, we had outstanding commitments to originate loans of $18.0 million. We anticipate that we will have sufficient funds available to meet our current lending commitments.
Such commitments are subject to the same credit policies and approval process accorded to loans we make. At December 31, 2025, we had outstanding commitments to originate loans of $35.7 million. We anticipate that we will have sufficient funds available to meet our current lending commitments.
Accordingly, although the tables provide an indication of our interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates, and actual results may differ. Interest rate risk calculations also may not reflect the fair values of financial instruments.
Accordingly, although the tables provide an indication of our interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates, and actual results may differ.
The estimates and assumptions that we use are based on historical experience and various other factors and are believed to be reasonable under the circumstances.
The estimates and assumptions that we use are 35 Table of Contents based on historical experience and various other factors and are believed to be reasonable under the circumstances.
Time deposits that are scheduled to mature in less than one year from December 31, 2024 totaled $96.2 million. Management expects that a substantial portion of these time deposits will be retained.
Time deposits that are scheduled to mature in less than one year from December 31, 2025 totaled $102.6 million. Management expects that a substantial portion of these time deposits will be retained.
We then calculate what the net interest income would be for the same period under the assumptions that the United States Treasury yield curve increases or decreases instantaneously by 200 and 400 basis point increments, with changes in interest rates representing immediate and permanent, parallel shifts in the yield curve.
We then calculate what the net interest income would be for the same period under the assumptions that the United States Treasury yield curve increases or decreases instantaneously by various rate change scenarios ranging from 100 to 400 basis point increments, with changes in interest rates representing immediate and permanent, parallel shifts in the yield curve.
The total interim construction loan portfolio consisted of 55 loans with funded balances of $33.1 million at December 31, 2024 compared to 82 loans at December 31, 2023 with funded balances of $31.5 million. Construction loans continue to be a large segment of our loan portfolio with the majority of the loans being originated in our primary market. Deposits.
The total interim construction loan portfolio consisted of 54 loans with funded balances of $23.9 million at December 31, 2025 compared to 55 loans at December 31, 2024 with funded balances of $33.1 million. Construction loans continue to be a large segment of our loan portfolio with the majority of the loans being originated in our primary market.
The primary impact of inflation on our operations is reflected in increased operating costs. Unlike most industrial companies, virtually all of the assets and liabilities of a financial institution are monetary in nature. As a result, interest rates, generally, have a more significant impact on a financial institution’s performance than does inflation.
Unlike most industrial companies, virtually all of the assets and liabilities of a financial institution are monetary in nature. As a result, interest rates, generally, have a more significant impact on a financial institution’s performance than does inflation.
During 2023, the Bank entered into interest rate swap agreements with a total notional amount of $25 million to hedge the risk of changes in the fair value of fixed rate AFS securities for changes in the SOFR benchmark rate.
See the Securities section of the management discussion and analysis for more information. During 2023, the Bank entered into interest rate swap agreements with a total notional amount of $25 million to hedge the risk of changes in the fair value of fixed rate AFS securities for changes in the SOFR benchmark rate.
The model estimates the economic value of each type of asset, liability and off-balance sheet contract under the assumptions that the United States Treasury yield curve increases or decreases instantaneously by 200 and 400 basis point increments, with changes in interest rates representing immediate and permanent, parallel shifts in the yield curve.
The model estimates the economic value of each type of asset, liability and off-balance 47 Table of Contents sheet contract under the assumptions that the United States Treasury yield curve increases or decreases instantaneously by rate change scenarios ranging from 100 to 400 basis point increments, with changes in interest rates representing immediate and permanent, parallel shifts in the yield curve.
Refer to additional detail regarding the fair value hedge in Note 19 – Derivatives of the accompanying consolidated financial statements. 42 Table of Contents Interest Expense.
Refer to additional detail regarding the fair value hedge in Note 20 – Derivatives of the accompanying consolidated financial statements. Interest Expense.
However, if a substantial portion of these time deposits is not retained, we may utilize advances from the Federal Home Loan Bank of Dallas or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense. Contractual Obligations. In the ordinary course of our operations, we enter into certain contractual obligations.
However, if a substantial portion of these time deposits is not retained, we may utilize advances from the Federal Home Loan Bank of Dallas or other wholesale funding sources, or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense. Contractual Obligations.
The average balance of Federal Home Loan Bank advances decreased by $3.0 million, or 4.2%, to $68.2 million for the year ended December 31, 2024 from $71.2 million for the year ended December 31, 2023.
The average balance of Federal Home Loan Bank advances decreased by $18.0 million, or 26.4%, to $50.2 million for the year ended December 31, 2025 from $68.2 million for the year ended December 31, 2024.
Core deposits totaled $205.9 million, or 61.3% of total deposits, as of December 31, 2024, compared to $198.5 million, or 62.6% of total deposits, as of December 31, 2023. ● Continue to manage credit risk to maintain a low level of nonperforming assets. Historically, we have been able to maintain a high level of asset quality.
Core deposits totaled $194.1 million, or 59.2% of total deposits, as of December 31, 2025, compared to $205.9 million, or 61.3% of total deposits, as of December 31, 2024. ● Continue to manage credit risk to maintain a low level of nonperforming assets. Historically, we have been able to maintain a high level of asset quality.
The table above indicates that at December 31, 2024, in the event of an instantaneous parallel 200 basis point increase in interest rates, we would experience a 0.78% increase in EVE, and in the event of an instantaneous 200 basis point decrease in interest rates, we would experience a 8.65% decrease in EVE.
The table above indicates that at December 31, 2025, in the event of an instantaneous parallel 200 basis point increase in interest rates, we would experience a 0.98% decrease in EVE, and in the event of an instantaneous 200 basis point decrease in interest rates, we would experience a 7.03% decrease in EVE.
Interest income on net loans and leases increased $3.1 million, or 24.0%, to $15.9 million for the year ended December 31, 2024 from $12.8 million for the year ended December 31, 2023 primarily due to an increase of $14.7 million, or 5.5%, in the average balance of the loan portfolio from $268.2 million for the year ended December 31, 2023 to $282.9 million for the year ended December 31, 2024, and an increase of 84 basis points, or 17.5%, in the average yield on loans from 4.79% for the year ended December 31, 2023 to 5.63% for the year ended December 31, 2024.
Interest income on net loans and leases increased $1.8 million, or 11.0%, to $17.7 million for the year ended December 31, 2025 from $15.9 million for the year ended December 31, 2024 primarily due to an increase of $15.4 million, or 5.4%, in the average balance of the loan portfolio from $282.9 million for the year ended December 31, 2024 to $298.3 million for the year ended December 31, 2025, and an increase of 30 basis points, or 5.3%, in the average yield on loans from 5.63% for the year ended December 31, 2024 to 5.93% for the year ended December 31, 2025.
Originations consisted primarily of $11.1 million in one-to-four family residential mortgage loans, $2.7 million in multifamily loans, interim construction loans of $25.2 million (when fully funded upon completion), $19.5 million in commercial real estate loans, $5.1 million in consumer loans, $5.0 million in commercial and industrial loans, $17.7 million in land and development loans, $3.2 million in farmland loans and $8.5 million in municipal loans.
Originations consisted primarily of $11.4 million in one-to-four family residential mortgage loans, $2.1 million in multifamily loans, interim construction loans of $27.0 million (when fully funded upon completion), $18.9 million in commercial real estate loans, $2.2 million in consumer and other loans, $2.6 million in commercial and industrial loans, $6.9 million in land and development loans, $9.7 million in farmland loans and $5.9 million in municipal loans.
When customers have questions regarding their loans, they are able to deal directly with us rather than another institution. At December 31, 2024, one-to-four family residential mortgage loans totaled $145.6 million, or 49.0% of total loans. This amount includes one- to four-family residential mortgage loans originated in the Dallas Metroplex.
When customers have questions regarding their loans, they are able to deal directly with us rather than another institution. At December 31, 2025, one-to-four family residential mortgage loans totaled $140.4 million, or 45.8% of total loans. This amount includes one- to four-family residential mortgage loans originated in the Dallas Fort Worth Metroplex.
At December 31, 2024, the portfolio was comprised of 86.4% residential mortgage backed securities, 7.1% state and municipal securities and 6.5% U.S. government and agency bonds. Loans and Leases Receivable, Net. Net loans and leases receivable increased $13.8 million, or 4.9%, to $293.7 million at December 31, 2024 from $279.9 million at December 31, 2023.
At December 31, 2025, the portfolio was comprised of 88.1% residential mortgage backed securities, 6.6% state and municipal securities and 5.3% U.S. government and agency bonds. Loans and Leases Receivable, Net. Net loans and leases receivable increased $9.5 million, or 3.2%, to $303.2 million at December 31, 2025 from $293.7 million at December 31, 2024.
These unrealized losses are due to increases in market interest rates since the time of purchase. At December 31, 2024, the AFS portfolio was comprised of 12.2% residential mortgage backed securities, 61.9% collateralized mortgage obligations, 17.7% state and municipal securities and 8.2% corporate bonds. Securities Held to Maturity.
These unrealized losses are due to increases in market interest rates since the time of purchase. At December 31, 2025, the AFS portfolio was comprised of 59.7% collateralized mortgage obligations, 16.0% corporate bonds, 14.6% state and municipal securities, and 9.7% residential mortgage backed securities. Securities Held to Maturity.
Overview Our business consists primarily of taking deposits from the general public and investing those deposits, together with funds generated from operations and borrowings from the Federal Home Loan Bank of Dallas, in residential real estate loans, commercial real estate loans, construction and land loans and, to a lesser extent, commercial loans and consumer and other loans.
You should read the information in this section in conjunction with the other business and financial information provided in this annual report. 33 Table of Contents Overview Our business consists primarily of taking deposits from the general public and investing those deposits, together with funds generated from operations and borrowings from the Federal Home Loan Bank of Dallas, in residential real estate loans, commercial real estate loans, construction and land loans and, to a lesser extent, commercial loans and consumer and other loans.
Net interest margin increased 25 basis points to 2.98% for the year ended December 31, 2024 from 2.73% for the year ended December 31, 2023. Provision for Credit Losses.
Net interest margin increased 28 basis points to 3.26% for the year ended December 31, 2025 from 2.98% for the year ended December 31, 2024. Provision for Credit Losses.
At December 31, 2024, the weighted average life (WAL) of our securities portfolio is 4.5 years. The gross unrealized losses on the AFS securities is $6.5 million, or 8.0% of the $81.6 million AFS portfolio and 13.5% of capital. Unrealized losses on the HTM securities were $2.6 million, or 11.8% of the $22.1 million HTM portfolio and 5.4% of capital.
At December 31, 2025, the weighted average life (WAL) of our securities portfolio is 4.9 years. The gross unrealized losses on the AFS securities is $3.9 million, or 6.1% of the $63.8 million AFS portfolio and 6.9% of capital. Unrealized losses on the HTM securities were $1.5 million, or 8.2% of the $18.3 million HTM portfolio and 2.6% of capital.
Interest income increased $3.5 million, or 18.4%, to $22.5 million for the year ended December 31, 2024 from $19.0 million at December 31, 2023. This was primarily the result of increased interest income on loans resulting from an increase in the average balance and average yield for the year ended December 31, 2024.
Interest income was unchanged at $22.5 million for the years ended December 31, 2024 and 2025. This was primarily the result of increased interest income on loans resulting from an increase in the average balance and average yield for the year ended December 31, 2025.
Gross unrealized losses on the available for sale portfolio consisting of 77 securities decreased from $7.2 million, or 7.2% of the portfolio’s amortized cost of $100.5 million at December 31, 2023, to $6.5 million, or 8.0% of the amortized cost of $81.6 million at December 31, 2024.
Gross unrealized losses on the available for sale portfolio consisting of 66 securities decreased from $6.5 million, or 8.0% of the portfolio’s amortized cost of $81.6 million at December 31, 2024, to $3.9 million, or 6.1% of the amortized cost of $63.8 million at December 31, 2025.
The average yield on securities declined by seven basis points, or 1.8%, from 4.10% for the year ended December 31, 2023 to 4.03% for the year ended December 31, 2024. The yield decrease is reflective of changes in the securities portfolio due to maturities, principal payments, and strategic purchases and sales.
The average yield on securities increased by 18 basis points, or 4.5%, from 4.03% for the year ended December 31, 2024 to 4.21% for the year ended December 31, 2025. The yield increase is reflective of changes in the securities portfolio due to maturities, principal payments, and strategic purchases and sales.
Housing supply and demand are monitored for indicators of a significant change in the local housing markets. The Bank has raised in-house mortgage rates while continuing to offer secondary market options to moderate loan funding and we have seen a decrease in mortgage demand due to higher market interest rates.
Housing supply and 49 Table of Contents demand are monitored for indicators of a significant change in the local housing markets. The Bank adjusts in-house mortgage rates based on market pricing while continuing to offer secondary market options to moderate loan funding and we have seen a moderate increase in mortgage demand due to relatively lower market interest rates.
We are monitoring housing supply and demand, primarily in our Mineola and Lindale markets where home sales and new home construction have been active, for indicators of a significant changes in the local housing markets. The decrease in mortgage demand has been offset by increases in commercial real estate and construction and land loan demand.
We are monitoring housing supply and demand, primarily in our Mineola, Lindale and Tyler markets where home sales and new home construction have been active, for indicators of a significant changes in the local housing markets.
The levels of these assets depend on our operating, financing, lending, and investing activities during any given period. Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities.
Our most liquid assets are cash and cash equivalents and short-term investments including interest-bearing demand deposits. The levels of these assets depend on our operating, financing, lending, and investing activities during any given period. Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities.
Dividends on restricted investments including stock in the Federal Home Loan Bank and Texas Independent Bank (TIB) increased $62,000, or 39.0%, from $159,000 for the year ended December 31, 2023 to $221,000 for the year ended December 31, 2024.
Dividends on restricted investments including stock in the Federal Home Loan Bank and Texas Independent Bank (TIB) decreased $54,000, or 24.4%, from $221,000 for the year ended December 31, 2024 to $167,000 for the year ended December 31, 2025.
Total assets were $443.5 million as of December 31, 2024, a decrease of $8.5 million, or 1.9%, when compared to total assets of $452.0 million as of December 31, 2023.
Total assets were $429.8 million as of December 31, 2025, a decrease of $13.7 million, or 3.1%, when compared to total assets of $443.5 million as of December 31, 2024.
Salary and employee benefit expenses decreased by $229,000, or 3.2%, to $6.8 million for the year ended December 31, 2024 from $7.1 million for the year ended December 31, 2023.
Salary and employee benefit expenses decreased by $308,000, or 4.5%, to $6.5 million for the year ended December 31, 2025 from $6.8 million for the year ended December 31, 2024.
The Company entered into an interest rate swap agreement in the year ended December 31, 2024 to convert a portion of its interest rate exposure from fixed rates to floating rates to help manage the interest rate risk position.
This is a decrease of $460,000, or 102.2% from interest income of $450,000 for the year ended December 31, 2024. The Company had entered into the interest rate swap agreement in 2023 to convert a portion of its interest rate exposure from fixed rates to floating rates to help manage the interest rate risk position.
There was also an increase of $484,000 in fed funds interest income for the year ended December 31, 2024 primarily from an increase of 27 basis points, or 5.3%, in average yield on fed funds sold from 5.11% for the year ended December 31, 2023 to 5.38% for the year ended December 31, 2024 and a $8.8 million, or 237.8%, increase in average fed funds sold from $3.7 million for the year ended December 31, 2023 to $12.5 million for the year ended December 31, 2024.
There was also a decrease of $464,000 in fed funds interest income for the year ended December 31, 2025 primarily from a decrease of 105 basis points, or 19.6%, in average yield on fed funds sold from 5.38% for the year ended December 31, 2024 to 4.33% for the year ended December 31, 2025 and a $7.7 million, or 61.6%, decrease in average fed funds sold from $12.5 million for the year ended December 31, 2024 to $4.8 million for the year ended December 31, 2025.
The table above indicates that at December 31, 2024, in the event of an instantaneous parallel 200 basis point increase in interest rates, we would experience a 7.50% increase in net interest income, and in the event of an instantaneous 200 basis point decrease in interest rates, we would experience a 6.70% decrease in net interest income. 45 Table of Contents Net Economic Value .
The table above indicates that at December 31, 2025, in the event of an instantaneous parallel 200 basis point increase in interest rates, we would experience a 3.49% increase in net interest income, and in the event of an instantaneous 200 basis point decrease in interest rates, we would experience a 0.93% decrease in net interest income.
At December 31, 2024, there were 191 accounts with balances in excess of the $250,000 FDIC insurance limit with a total balance of $98.0 million, or 29.2% of deposits. The amount that was over $250,000 was $50.3 million, or 15.0%, that was potentially uninsured, including certificates of deposit of $10.7 million and $39.6 million in checking, MMDA and savings accounts.
At December 31, 2025, there were 195 accounts with balances in excess of the $250,000 FDIC insurance limit with a total balance of $94.6 million, or 28.9% of deposits. The amount that was over $250,000 was $45.8 million, or 14.0%, that was potentially uninsured, including certificates of deposit of $13.6 million and $32.2 million in checking, MMDA and savings accounts.
This was offset by an increase in average cost of 21 basis points, or 5.9%, from 3.60% for the year ended December 31, 2023 to 3.81% for the year ended December 31, 2024. As overall liquidity has improved, this has enabled the Company to pay down FHLB advances to $49.9 million at December 31, 2024. Net Interest Income .
This was offset by an increase in average cost of 30 basis points, or 7.9%, from 3.81% for the year ended December 31, 2024 to 4.11% for the year ended December 31, 2025. The Company has paid down FHLB advances to $45.7 million at December 31, 2025. Net Interest Income .
The information in this section has been derived from the consolidated financial statements, which appear elsewhere in this annual report. You should read the information in this section in conjunction with the other business and financial information provided in this annual report.
The information in this section has been derived from the consolidated financial statements, which appear elsewhere in this annual report.
Net interest income increased $1.5 million, or 13.5%, to $12.6 million for the year ended December 31, 2024 from $11.1 million for the year ended December 31, 2023, primarily due to an increase in interest-earning assets of $15.3 million, or 3.8%, to $420.4 million at December 31, 2024 from $405.1 million at December 31, 2023, and an increase in net interest rate spread of 24 basis points, or 10.6%, from 2.27% for the year ended December 31, 2023 to 2.51% for the year ended December 31, 2024.
Net interest income increased $764,000, or 6.1%, to $13.3 million for the year ended December 31, 2025 from $12.6 million for the year ended December 31, 2024, primarily due to an increase in net interest rate spread of 29 basis points, or 11.5%, from 2.51% for the year ended December 31, 2024 to 2.80% for the year ended December 31, 2025.
During the year ended December 31, 2024, interim construction loans (when fully funded upon completion) decreased by $11.8 million, or 21.7%, to $42.5 million at December 31, 2024 from $54.3 million at December 31, 2023.
During the year ended December 31, 2025, interim construction loans (when fully funded upon completion) decreased by $6.5 million, or 15.2%, to $36.0 million at December 31, 2025 from $42.5 million at December 31, 2024.
This decrease is primarily due to a decrease in the average balance of securities of $12.6 million, or 10.2%, from $123.5 million, for the year ended December 31, 2023 to $110.9 million for the year ended December 31, 2024.
This decrease is primarily due to a decrease in the average balance of securities of $13.1 million, or 11.8%, from $110.9 million, for the year ended December 31, 2024 to $97.8 million for the year ended December 31, 2025.
At December 31, 2024, there were 191 accounts with balances in excess of $250,000 with a total of $98.0 million, or 29.2% of deposits. The amount that was over $250,000 was $50.3 million, or 15.0%, that was potentially uninsured, including certificates of deposit of $10.7 million and $39.6 million in checking, MMDA and savings accounts.
At December 31, 2025, there were 195 accounts with balances in excess of $250,000 with a total of $94.6 million, or 28.8% of deposits. The amount that was over $250,000 was $45.8 million, or 14.0%, that was potentially uninsured, including certificates of deposit of $13.6 million and $32.2 million in checking, MMDA and savings accounts.
Securities held to maturity decreased by $3.9 million, or 15.0%, to $22.1 million at December 31, 2024 from $26.0 million at December 31, 2023. This decrease is primarily due to principal repayments of $3.4 million and one call of $395,000.
Securities held to maturity decreased by $3.8 million, or 17.2%, to $18.3 million at December 31, 2025 from $22.1 million at December 31, 2024. This decrease is primarily due to principal repayments of $3.4 million and maturities of $365,000.
This increase resulted primarily from an increase in yield of 103 basis points, or 20.1%, from 5.14% for the year ended December 31, 2023 to 6.17% for the year ended December 31, 2024 and an increase in average balance of $488,000, or 15.8%, from $3.1 million for the year ended December 31, 2023 to $3.6 million for the year ended December 31, 2024.
This decrease resulted primarily from an decrease in average balance of $650,000, or 18.1%, from $3.6 million for the year ended December 31, 2024 to $2.9 million for the year ended December 31, 2025, and a decrease in yield of 48 basis points, or 7.8%, from 6.17% for the year ended December 31, 2024 to 5.69% for the year ended December 31, 2025.
We also compute amounts by which the net present value of our assets and liabilities (net economic value of equity or “EVE”) would change in the event of a range of assumed changes in market interest rates. This model uses a discounted cash flow analysis and an option-based pricing approach to measure the interest rate sensitivity of net portfolio value.
Net Economic Value . We also compute amounts by which the net present value of our assets and liabilities (net economic value of equity or “EVE”) would change in the event of a range of assumed changes in market interest rates.
The increase in the effective tax rate was primarily due to taxable income increasing at a faster rate than nontaxable income. Management of Market Risk General . Our most significant form of market risk is interest rate risk because, as a financial institution, the majority of our assets and liabilities are sensitive to changes in interest rates.
Our most significant form of market risk is interest rate risk because, as a financial institution, the majority of our assets and liabilities are sensitive to changes in interest rates.
In addition, at December 31, 2024, we had three unused lines of credit which included an unsecured $10.0 million and a secured $3.0 million line of credit with Texas Independent Bankers Bank and an unsecured $5.0 million line of credit with First Horizon Bank. At December 31, 2024, there was no outstanding balance with any of these facilities.
In addition, at December 31, 2025, we had two unused lines of credit for a total of $8.0 million, which included an unsecured $3.0 million line of credit with Texas Independent Bankers Bank and an unsecured $5.0 million line of credit with First Horizon Bank.
At December 31, 2024, commercial real estate loans amounted to $56.1 million, or 19.0% of total loans compared to $41.8 million, or 14.8% at December 31, 2023, and construction and land loans amounted to $54.1 million, or 18.4% of total loans compared to $37.5 million, or 13.3% at December 31, 2023.
At December 31, 2025, commercial real estate loans amounted to $61.5 million, or 20.1% of total loans compared to $56.1 million, or 18.9% at December 31, 2024, and construction and land loans amounted to $48.4 million, or 15.8% of total loans compared to $54.1 million, or 18.2% at December 31, 2024.
Cash and Cash Equivalents. Total cash and cash equivalents (which includes fed funds sold) increased $230,000, or 1.5%, to $13.3 million (including $9.3 million in Fed Funds sold) at December 31, 2024 from $13.1 million (including $7.6 million in Fed Funds sold) at December 31, 2023. These accounts provided a favorable yield while maintaining a high level of liquidity.
Total cash and cash equivalents (which includes fed funds sold) decreased $6.8 million, or 51.1%, to $6.5 million (including $2.6 million in Fed Funds sold) at December 31, 2025 from $13.3 million (including $9.3 million in Fed Funds sold) at December 31, 2024. These balances provided a favorable yield while maintaining adequate liquidity for strategic funding needs.
Deposits increased $18.6 million, or 5.9%, to $335.8 million at December 31, 2024 from $317.2 million at December 31, 2023. Core deposits (defined as all deposits other than certificates of deposit) increased $7.4 million, or 3.7%, to $205.9 million at December 31, 2024 from $198.5 million at December 31, 2023.
Core deposits (defined as all deposits other than certificates of deposit) decreased $11.8 million, or 5.7%, to $194.1 million at December 31, 2025 from $205.9 million at December 31, 2024. Retail certificates of deposit increased $5.1 million, or 4.8%, to $113.1 million at December 31, 2025 from $107.9 million at December 31, 2024.
No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are daily average balances. Nonaccrual loans are included in the computation of average balances. Average yields for loans include loan fees of $511,000 and $631,000 for the years ended December 31, 2024 and 2023, respectively.
All average balances are daily average balances. Nonaccrual loans are included in the computation of average balances. Average yields for loans include loan fees of $557,000 and $511,000 for the years ended December 31, 2025 and 2024, respectively.
We have not recorded deferred loan fees, as we have determined them to be immaterial. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ 2024 ​ 2023 ​ ​ Average ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ Outstanding ​ ​ ​ ​ Average ​ Outstanding ​ ​ ​ ​ Average ​ ​ ​ Balance Interest Yield/Rate Balance Interest Yield/Rate ​ ​ ​ (Dollars in thousands) Interest-earning assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans ​ $ 282,894 ​ $ 15,923 ​ 5.63 % $ 268,179 ​ $ 12,842 ​ 4.79 % Allowance for credit losses ​ ​ (3,044) ​ ​ ​ ​ (2,642) ​ ​ ​ ​ Securities ​ ​ 110,893 ​ 4,464 4.03 % ​ 123,494 ​ 5,061 4.10 % Restricted stock ​ ​ 3,584 ​ 221 6.17 % ​ 3,096 ​ 159 5.14 % Interest-bearing deposits in banks ​ ​ 13,271 ​ 723 5.45 % ​ 8,787 ​ 452 5.14 % Federal funds sold ​ ​ 12,465 ​ 671 5.38 % ​ 3,661 ​ 187 5.11 % Financial derivative ​ ​ 380 ​ ​ 450 ​ ​ ​ ​ 559 ​ ​ 277 ​ ​ ​ Total interest-earning assets ​ ​ 420,443 ​ 22,452 5.34 % ​ 405,134 ​ 18,978 4.68 % Noninterest-earning assets ​ ​ 28,720 ​ ​ ​ ​ 24,667 ​ ​ Total assets ​ $ 449,163 ​ ​ ​ ​ $ 429,801 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing demand deposits ​ $ 69,237 ​ 454 0.66 % $ 60,271 ​ 247 0.41 % Regular savings and other deposits ​ 45,652 ​ 134 0.29 % 55,509 ​ 171 0.31 % Money market deposits ​ 44,526 ​ 1,453 3.26 % 32,626 ​ 1,055 3.23 % Certificates of deposit ​ 121,986 ​ 5,252 4.31 % 108,011 ​ 3,871 3.58 % Total interest-bearing deposits ​ 281,401 ​ 7,293 2.59 % 256,417 ​ 5,344 2.08 % Advances from the Federal Home Loan Bank ​ 68,224 ​ 2,599 3.81 % 71,198 ​ 2,561 3.60 % Other liabilities ​ 724 ​ 10 1.38 % 608 ​ 9 1.48 % Total interest-bearing liabilities ​ 350,349 ​ 9,902 2.83 % 328,223 ​ 7,914 2.41 % Noninterest-bearing demand deposits ​ 51,760 ​ ​ ​ ​ 54,943 ​ ​ ​ ​ Other noninterest-bearing liabilities ​ 4,641 ​ ​ ​ ​ 4,652 ​ ​ ​ ​ Total liabilities ​ 406,750 ​ ​ ​ ​ 387,818 ​ ​ ​ ​ Total shareholders' equity ​ 42,413 ​ ​ ​ ​ 41,983 ​ ​ ​ ​ Total liabilities and shareholders' equity ​ $ 449,163 ​ ​ ​ ​ $ 429,801 ​ ​ ​ ​ Net interest income ​ ​ ​ $ 12,550 ​ ​ ​ ​ $ 11,064 ​ Net interest rate spread (1) ​ ​ ​ ​ ​ 2.51 % ​ ​ ​ 2.27 % Net interest-earning assets (2) ​ $ 70,094 ​ ​ ​ ​ ​ $ 76,911 ​ ​ ​ ​ Net interest margin (3) ​ ​ ​ ​ ​ 2.98 % ​ ​ ​ 2.73 % Average interest-earning assets to interest-bearing liabilities ​ ​ ​ ​ ​ 120.01 % ​ ​ ​ 123.43 % (1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
We have not recorded deferred loan fees, as we have determined them to be immaterial. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ 2025 ​ 2024 ​ ​ Average ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ Outstanding ​ ​ ​ ​ Average ​ Outstanding ​ ​ ​ ​ Average ​ ​ ​ Balance ​ ​ ​ Interest ​ ​ ​ Yield/Rate ​ ​ ​ Balance ​ ​ ​ Interest ​ ​ ​ Yield/Rate ​ ​ ​ (Dollars in thousands) Interest-earning assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans ​ $ 298,300 ​ $ 17,681 ​ 5.93 % $ 282,894 ​ $ 15,923 ​ 5.63 % Allowance for credit losses ​ ​ (3,260) ​ ​ ​ ​ (3,044) ​ ​ ​ ​ Securities ​ ​ 97,846 ​ 4,123 4.21 % ​ 110,893 ​ 4,464 4.03 % Restricted stock ​ ​ 2,934 ​ 167 5.69 % ​ 3,584 ​ 221 6.17 % Interest-bearing deposits in banks ​ ​ 7,442 ​ 323 4.34 % ​ 13,271 ​ 723 5.45 % Federal funds sold ​ ​ 4,781 ​ 207 4.33 % ​ 12,465 ​ 671 5.38 % Financial derivative ​ ​ 18 ​ ​ (10) ​ ​ ​ ​ 380 ​ ​ 450 ​ ​ ​ Total interest-earning assets ​ ​ 408,061 ​ 22,491 5.51 % ​ 420,443 ​ 22,452 5.34 % Noninterest-earning assets ​ ​ 31,765 ​ ​ ​ ​ 28,720 ​ ​ ​ ​ Total assets ​ $ 439,826 ​ ​ ​ ​ $ 449,163 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing demand deposits ​ $ 64,213 ​ 363 0.57 % $ 69,237 ​ 454 0.66 % Regular savings and other deposits ​ 42,731 ​ 162 0.38 % 45,652 ​ 134 0.29 % Money market deposits ​ 45,236 ​ 1,201 2.65 % 44,526 ​ 1,453 3.26 % Certificates of deposit ​ 136,209 ​ 5,379 3.95 % 121,986 ​ 5,252 4.31 % Total interest-bearing deposits ​ 288,389 ​ 7,105 2.46 % 281,401 ​ 7,293 2.59 % Advances from the Federal Home Loan Bank ​ 50,186 ​ 2,063 4.11 % 68,224 ​ 2,599 3.81 % Other liabilities ​ 218 ​ 9 4.13 % 724 ​ 10 1.38 % Total interest-bearing liabilities ​ 338,793 ​ 9,177 2.71 % 350,349 ​ 9,902 2.83 % Noninterest-bearing demand deposits ​ 50,640 ​ ​ ​ ​ 51,760 ​ ​ ​ ​ Other noninterest-bearing liabilities ​ 4,430 ​ ​ ​ ​ 4,641 ​ ​ ​ ​ Total liabilities ​ 393,863 ​ ​ ​ ​ 406,750 ​ ​ ​ ​ Total shareholders' equity ​ 45,963 ​ ​ ​ ​ 42,413 ​ ​ ​ ​ Total liabilities and shareholders' equity ​ $ 439,826 ​ ​ ​ ​ $ 449,163 ​ ​ ​ ​ Net interest income ​ ​ ​ $ 13,314 ​ ​ ​ ​ $ 12,550 ​ ​ Net interest rate spread (1) ​ ​ ​ ​ ​ 2.80 % ​ ​ ​ 2.51 % Net interest-earning assets (2) ​ $ 69,268 ​ ​ ​ ​ ​ $ 70,094 ​ ​ ​ ​ Net interest margin (3) ​ ​ ​ ​ ​ 3.26 % ​ ​ ​ 2.98 % Average interest-earning assets to interest-bearing liabilities ​ ​ ​ ​ ​ 120.45 % ​ ​ ​ 120.01 % (1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
Interest expense on deposit accounts increased $2.0 million, or 37.8%, to $7.3 million for the year ended December 31, 2024 from $5.3 million for the year ended December 31, 2023, due to an increase in the average deposit cost of 51 basis points, or 24.4%, from 2.08% for the year ended December 31, 2023 to 2.59% for the year ended December 31, 2024 and an increase in average interest-bearing deposits of $25.0 million, or 9.8%, from $256.4 million for the year ended December 31, 2023 to $281.4 million for the year ended December 31, 2024, with the increase being primarily in higher cost certificates of deposit and money market deposits, offset by a decrease in lower cost savings accounts.
Interest expense on deposit accounts decreased $188,000, or 2.6%, to $7.1 million for the year ended December 31, 2025 from $7.3 million for the year ended December 31, 2024, due to a decrease in the average deposit cost of 13 basis points, or 4.9%, from 2.59% for the year ended December 31, 2024 to 2.46% for the year ended December 31, 2025 and partially offset by an increase in average interest-bearing deposits of $7.0 million, or 2.5%, from $281.4 million for the year ended December 31, 2024 to $288.4 million for the year ended December 31, 2025.
At December 31, 2024, $13.3 million in commercial real estate loans are outside of our primary market area. During the year ended December 31, 2024, loan originations totaled $98.1 million of which $9.1 million were renewals or refinancings of existing loans with Broadstreet Bank (including interim construction loans converting to a permanent loan), resulting in net originations of $88.3 million.
During the year ended December 31, 2025, loan originations totaled $86.7 million of which $10.3 million were renewals or refinancings of existing loans with Broadstreet Bank (including interim construction loans converting to a permanent loan), resulting in net originations of $76.4 million.
This migration to higher yielding accounts is due to the interest rate environment, competition and additional brokered deposits. At December 31, 2024, market rates had levelled off some and the Bank’s deposit rates had decreased. Interest expense on Federal Home Loan Bank advances increased $38,000, or 1.5%, to $2.6 million for the year ended December 31, 2024.
At December 31, 2025, market rates had leveled off some and the Bank’s deposit rates had decreased. Interest expense on Federal Home Loan Bank advances decreased $536,000, or 20.6%, to $2.1 million for the year ended December 31, 2025 from $2.6 million for the year ended December 31, 2024.
In 2024, the Company sold eight securities totaling $20.1 million at a gain of $190,000 and purchased nine securities totaling $19.4 million as part of a balance sheet restructuring strategy to increase interest income and diversify the portfolio.
In 2025, the Company sold 20 securities totaling $23.8 million at a gain of $117,000 and purchased 16 securities totaling $23.7 million as part of a balance sheet restructuring strategy to increase interest income and diversify the portfolio. The Company also purchased $30.0 million in short-term securities as part of a tax management strategy.
The decrease was due primarily to a decrease in securities of $22.0 million, or 18.4%, to $97.3 million at December 31, 2024 from $119.3 million at December 31, 2023 and a decrease in interest bearing deposits in banks of $2.6 million, or 21.1%, to $9.7 million at December 31, 2024 from $12.3 million at December 31, 2023 partially offset by an increase in net loans and leases of $13.8 million, or 4.9%, to $293.7 million at December 31, 2024 from $279.9 million at December 31, 2023, an increase in other real estate owned of $318,000, or 196.3% to $480,000 at December 31, 2024 which consisted of two buildings the Company had purchased for expansion and had listed for sale, an increase of $343,000, or 8.8%, to $4.3 million at December 31, 2024 in restricted investments carried at cost, which includes $3.5 million in FHLB stock.
The decrease was due primarily to a decrease in securities of $19.1 million, or 19.6%, to $78.2 million at December 31, 2025 from $97.3 million at December 31, 2024, a decrease in cash and equivalents of $6.8 million, or 51.1%, to $6.5 million at December 31, 2025 from $13.3 million at December 31, 2024, and a decrease in interest bearing deposits in banks of $4.2 million, or 43.3%, to $5.5 million at December 31, 2025 from $9.7 million at December 31, 2024 partially offset by an increase in net loans and leases of $9.5 million, or 3.2%, to $303.2 million at December 31, 2025 from $293.7 million at December 31, 2024, and an increase in other real estate owned of $8.8 million, or 1837.5% to $9.3 million at December 31, 2025 which consisted of a foreclosed multifamily property, two parcels of land received in lieu of foreclosure, and a building the Bank had purchased for expansion and had listed for sale.
Impact of Inflation and Changing Prices The consolidated financial statements and related data have been prepared in accordance with U.S. GAAP, which requires the measurement of financial position and operating results in terms of historical dollars without considering changes in the relative purchasing power of money over time due to inflation.
GAAP, which requires the measurement of financial position and operating results in terms of historical dollars without considering changes in the relative purchasing power of money over time due to inflation. The primary impact of inflation on our operations is reflected in increased operating costs.
In addition to the loan sale, there was $98.1 million in loan originations partially offset by $53.7 million in payoffs and other principal reductions and $13.5 million in contractual repayments. The loan portfolio has become more diverse in line with the Bank’s strategic plan to increase loans in the commercial real estate sector.
There was $86.8 million in loan originations partially offset by $44.3 million in payoffs and other principal reductions and $11.9 million in contractual repayments. Loan portfolio diversification efforts continue in line with the Bank’s strategic plan to increase loans in the commercial real estate portfolio.
Net unrealized losses on the available for sale portfolio, including derivatives, decreased by $826,000, or 14.8%, to $4.8 million, net of tax, from $5.7 million, net of tax, due primarily to decreases in market interest rates.
Unrealized losses on the available for sale portfolio decreased by $2.6 million, or 40.0%, to $3.9 million, from $6.5 million, due primarily to decreases in market interest rates.
The net loss was $1.3 million for the year ended December 31, 2024, compared to a net loss of $733,000 for the year ended December 31, 2023, an increased loss of $572,000, or 78.0%.
Net income was $2.8 million for the year ended December 31, 2025, compared to a net loss of $1.3 million for the year ended December 31, 2024, an increase of $4.1 million.
Interest income from interest bearing deposits in banks increased $271,000, or 60.0%, from $452,000 for the year ended December 31, 2023 to $723,000 for the year ended December 31, 2024, resulting primarily from the increase in average yield of 31 basis points, or 6.1%, from 5.14% for the year ended December 31, 2023 to 5.45% for the year ended December 31, 2024 and an increase in average interest bearing deposits of $4.5 million, or 51.0% from $8.8 million for the year ended December 31, 2023 to $13.3 million for the year ended December 31, 2024.
Interest income from interest bearing deposits in banks decreased $400,000, or 55.3%, from $723,000 for the year ended December 31, 2024 to $323,000 for the year ended December 31, 2025, resulting primarily from a decrease in average yield of 111 basis points, or 20.3%, from 5.45% for the year ended December 31, 2024 to 4.34% for the year ended December 31, 2025 and a decrease in average interest bearing deposits of $5.9 million, or 44.4% from $13.3 million for the year ended December 31, 2024 to $7.4 million for the year ended December 31, 2025.

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