Texas Community Bancshares, Inc. reported net income of $678,000 for the second quarter ended June 30, 2025, marking five consecutive quarters of increased earnings. For the first six months of 2025, net income reached $1.3 million, a significant rebound from a net loss of $2.3 million in the prior-year period.
Net interest income for the first half of 2025 increased by $356,000, or 5.8%, to $6.5 million, driven by a $347,000 decrease in interest expense. This reduction was primarily due to a $22.0 million decrease in Federal Home Loan Bank advances. Noninterest expenses declined by 2.7%, with technology expenses decreasing by $113,000, or 59.8%, and salaries and benefits falling by 4.6%.
The company recorded a provision for credit losses of $71,000 for the six months ended June 30, 2025, compared to a reversal in the prior year. Past due loans rose to 3.71% and nonaccrual loans reached 3.58% of the loan portfolio, primarily due to two well-collateralized real estate loans totaling $9.0 million being placed on nonaccrual status.
Despite asset quality concerns, the bank continues to invest in technology, implementing automated consumer loan processing, new digital mortgage and deposit account origination tools, and deposit-taking ATMs. These efforts, alongside new treasury management products and one-time-close home improvement loans, aim to enhance long-term efficiency and competitiveness.
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