Texas Community Bancshares, Inc. reported a net loss of $1.3 million for the fiscal year ending December 31, 2024, compared to a net loss of $733,000 in the previous year. This increase in loss was primarily attributed to a $3.8 million loss on the sale of loans as part of a strategic repositioning of the balance sheet. Despite the loss, the company experienced a 13.4% increase in net interest income, which rose to $12.6 million from $11.1 million in 2023, driven by higher interest income from loans and a favorable increase in the average yield on interest-earning assets.
Total assets for Texas Community Bancshares decreased by 1.9% to $443.5 million as of December 31, 2024, down from $452.0 million in 2023. The decline was primarily due to a significant reduction in securities, which fell by 19.4% to $75.2 million. However, net loans and leases increased by 4.9% to $293.7 million, reflecting a strategic shift towards commercial real estate and construction loans. The company also reported a 5.9% increase in total deposits, which reached $335.8 million, supported by a rise in brokered deposits.
In terms of operational developments, Texas Community Bancshares opened a new branch in Tyler, Texas, in early 2024, expanding its footprint in a growing market. The company also sold a block of residential mortgage loans totaling $24.3 million to diversify its loan portfolio and mitigate interest rate risk. As of December 31, 2024, the company had 60 full-time employees, a slight decrease from 62 in the previous year, reflecting ongoing adjustments in operational efficiency.
The company’s allowance for credit losses stood at 1.09% of total loans, consistent with the previous year, indicating stable asset quality despite the challenging economic environment. The total nonperforming assets ratio increased to 0.62% from 0.30% in 2023, primarily due to a rise in nonaccrual loans. Looking ahead, Texas Community Bancshares aims to continue its focus on community banking while diversifying its loan portfolio and managing credit risk effectively. The company remains committed to maintaining a strong liquidity position and is well-capitalized under regulatory requirements, with a community bank leverage ratio of 10.84% as of December 31, 2024.
About Texas Community Bancshares, Inc.
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