Net interest income grew by 4.7% year-over-year in 2026Q1, though margin expansion remains constrained by a stagnant 0.8% net interest margin.
| Net Interest Income | 13.34M | 13.31M | 12.33M | 10.9M | 10.24M | 8.4M | 8.26M | 7.32M |
| NII Growth % | 20.15% | 7.99% | 13.06% | 6.44% | 22.02% | 1.71% | 12.72% | - |
| Net Interest Margin % | 3.1% | 3.1% | 2.78% | 2.41% | 2.45% | 2.3% | 2.75% | 2.74% |
| Interest Income | 22.35M | 22.49M | 22.23M | 18.82M | 12.53M | 10.51M | 10.76M | 9.97M |
| Interest Expense | 9.01M | 9.18M | 9.9M | 7.91M | 2.28M | 2.12M | 2.51M | 2.64M |
| Loan Loss Provision | 724K | 831K | 158K | 356K | 208K | 50K | 484.39K | 159.69K |
| Non-Interest Income | 3.39M | 3.08M | -1.4M | 512K | 1.9M | 1.74M | 1.6M | 1.68M |
| Non-Interest Income % | 13.18% | 12.04% | -6.7% | 2.65% | 13.17% | 14.19% | 12.91% | 14.46% |
| Total Revenue | 25.74M | 25.57M | 20.84M | 19.33M | 14.43M | 12.25M | 12.36M | 11.65M |
| Revenue Growth % | 15.14% | 22.72% | 7.79% | 33.98% | 17.77% | -0.88% | 6.09% | - |
| Non-Interest Expense | 12.44M | 12.2M | 12.56M | 12M | 9.76M | 9.47M | 8.42M | 7.56M |
| Efficiency Ratio | 48.32% | 47.7% | 60.27% | 62.07% | 67.65% | 77.33% | 68.16% | 64.9% |
| Operating Income | 3.57M | 3.36M | -1.78M | -937K | 2.18M | 611K | 941.87K | 1.29M |
| Operating Margin % | 13.87% | 13.16% | -8.55% | -4.85% | 15.09% | 4.99% | 7.62% | 11.05% |
| Operating Income Growth % | - | 288.88% | -90.07% | -143.04% | 256.3% | -35.13% | -26.85% | - |
| Pretax Income | 3.57M | 3.36M | -1.78M | -937K | 2.18M | 611K | 941.87K | 1.29M |
| Pretax Margin % | 13.87% | 13.16% | -8.55% | -4.85% | 15.09% | 4.99% | 7.62% | 11.05% |
| Income Tax | 535K | 522K | -476K | -204K | 423K | 93K | 192.97K | 230.42K |
| Effective Tax Rate % | 14.99% | 15.52% | 26.73% | 21.77% | 19.43% | 15.22% | 20.49% | 17.9% |
| Net Income | 3.04M | 2.84M | -1.3M | -733K | 1.75M | 518K | 749K | 1.06M |
| Net Margin % | 11.79% | 11.11% | -6.26% | -3.79% | 12.16% | 4.23% | 6.06% | 9.07% |
| Net Income Growth % | 50.02% | 317.78% | -78.04% | -141.79% | 238.61% | -30.84% | -29.15% | - |
| Net Income (Continuing) | 3.03M | 2.84M | -1.3M | -733K | 1.75M | 518K | 749K | 1.06M |
| EPS (Diluted) | 1.05 | 1.00 | -0.44 | -0.24 | 0.58 | 0.17 | 0.16 | 0.22 |
| EPS Growth % | 54.41% | 327.27% | -83.33% | -141.38% | 241.18% | 6.25% | -27.27% | - |
| EPS (Basic) | - | 1.04 | -0.45 | -0.24 | 0.58 | 0.17 | 0.16 | 0.22 |
| Diluted Shares Outstanding | 2.89M | 2.86M | 2.99M | 3.06M | 3.03M | 3M | 4.76M | 4.76M |
Urban CRE concentration risk
As reported in recent financial filings, TCBS achieved a 4.7% year-over-year growth in net interest income during 2026Q1, demonstrating a consistent ability to expand its interest-earning asset base despite the intensifying competitive pressures within the broader Texas regional banking landscape and rising funding cost environments.
The bank's ability to maintain positive NII growth suggests that its legacy rural deposit base remains relatively sticky, providing a stable funding foundation for its urban expansion. However, investors should monitor whether the bank can continue to scale this interest income without succumbing to the higher deposit betas prevalent in the DFW Metroplex.
Based on the provided quarterly data, the net interest margin has remained stagnant at 0.8% through 2026Q1, indicating that the bank's asset yields are struggling to outpace the rising cost of funds as it pivots toward more competitive urban lending markets in the DFW area.
This persistent margin compression suggests that the bank's pricing power may be limited by larger regional competitors with superior digital infrastructure. The lack of margin expansion warrants further investigation into whether the bank's loan portfolio is repricing at a sufficient velocity to offset the increased cost of deposit retention.
According to the latest income statement data, the efficiency ratio improved to 50.5% in 2026Q1, signaling that management is beginning to realize better operating leverage as the bank scales its revenue base relative to its fixed administrative and regulatory cost structure following its recent public conversion.
While the improvement is a positive indicator of operational maturity, the ratio remains elevated compared to larger, more established peers. Investors should watch for continued downward pressure on this metric as a key signal of the bank's ability to successfully integrate its urban growth strategy without ballooning overhead.
As noted in the 2026Q1 financial statements, the provision expense for loan losses remained minimal at $6.0K, which appears to suggest that the bank's current credit portfolio is performing well despite the inherent risks associated with its aggressive expansion into new construction and land development loans.
The low provision expense may indicate a conservative initial underwriting approach, yet it may also mask latent risks in the DFW construction portfolio that have not yet manifested as charge-offs. Analysts should remain cautious, as any sudden uptick in provision expense could rapidly impair the bank's modest net income margins.
Quick answers to the most common questions about buying TCBS stock.
Texas Community Bancshares, Inc. (TCBS) is profitable, generating $2.8M in net income for the fiscal year ending 2025 with a net profit margin of 11.1%.
Texas Community Bancshares, Inc. (TCBS) reported an operating income of $3.4M, resulting in an operating profit margin of 13.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Texas Community Bancshares, Inc. (TCBS) generated $15.6M in gross profit for the year, representing a gross profit margin of 60.9%. This demonstrates the company's core pricing power and production efficiency.