Texas Community Bancshares, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the third quarter of 2024, the company achieved a net income of $515,000, a 12.9% increase from $456,000 in the same period of 2023. This growth was driven by a 13.0% rise in net interest income, which reached $3.2 million, up from $2.8 million in the prior year. Interest income for the quarter increased by 14.6% to $5.7 million, primarily due to higher loan yields, which rose to 5.80% from 5.01%. However, noninterest income decreased by 10.5% to $530,000, attributed to lower loan fee income and a lack of nonrecurring income seen in the previous year.

For the nine months ended September 30, 2024, the company reported a net loss of $1.8 million, a significant decline from a loss of $401,000 in the same period of 2023. This downturn was largely due to a $3.8 million pre-tax loss from the sale of 122 performing residential mortgage loans as part of a portfolio repositioning strategy. Despite this, net interest income for the nine months increased by 16.0% to $9.4 million, supported by a rise in interest income to $16.8 million, up from $13.7 million in 2023.

Total assets as of September 30, 2024, were $446.0 million, a slight decrease of 1.3% from $452.0 million at the end of 2023. The company experienced a 4.7% increase in net loans and leases, totaling $293.0 million, while total deposits rose by 2.9% to $326.3 million. The increase in deposits was driven by a rise in core deposits, which grew by 3.2% to $204.9 million.

Strategically, Texas Community Bancshares has been active in managing its loan portfolio, selling $27.1 million in residential mortgage loans at a loss as part of its repositioning efforts. The company also repurchased 69,931 shares of common stock, reducing equity by $1.0 million, and declared dividends totaling $380,000 for the nine months ended September 30, 2024.

The allowance for credit losses stood at 1.07% of total loans as of September 30, 2024, reflecting management's assessment of credit risk. The company continues to maintain a strong capital position, with a community bank leverage ratio of 10.59%, exceeding regulatory requirements.