Texas Community Bancshares, Inc. 10-Q

Item 1. Financial Statements Texas Community Bancshares, Inc. and Subsidiaries Consolidated Statements of Financial Condition September 30, 2025 and December 31, 2024 (Amounts in thousands, except share and per share data) ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2025 ​ 2024 ​ ​ (unaudited) ​ ​ ​ Assets ​ ​ ​ ​ Cash and due from banks $ 5,047 $ 4,015 Federal funds sold ​ ​ 7,136 ​ ​ 9,275 Cash and cash equivalents ​ ​ 12,183 ​ ​ 13,290 Interest bearing deposits in banks ​ ​ 1,297 ​ ​ 9,720 Securities available for sale ​ ​ 85,896 ​ ​ 75,189 Securities held to maturity (fair values of $ 17,359 at September 30, 2025 and $ 19,531 at December 31, 2024) ​ ​ 19,074 ​ ​ 22,096 Loans receivable, net of allowance for credit losses of $ 3,247 at September 30, 2025 and $ 3,222 at December 31, 2024 ​ ​ 283,701 ​ ​ 292,416 Net investment in direct financing leases ​ ​ 1,228 ​ ​ 1,292 Accrued interest receivable ​ ​ 1,605 ​ ​ 1,919 Premises and equipment, net ​ ​ 11,435 ​ ​ 11,526 Bank-owned life insurance ​ ​ 6,497 ​ ​ 6,370 Other real estate owned ​ ​ 9,271 ​ ​ 480 Restricted investments carried at cost ​ ​ 3,463 ​ ​ 4,252 Core deposit intangible ​ ​ 33 ​ ​ 132 Deferred income taxes ​ ​ 2,015 ​ ​ 2,688 Financial derivative ​ ​ — ​ ​ 419 Other assets ​ ​ 1,787 ​ ​ 1,668 ​ ​ $ 439,485 ​ $ 443,457 Liabilities and Shareholders' Equity ​ ​ ​ ​ Liabilities ​ ​ ​ ​ Noninterest bearing ​ $ 49,190 ​ $ 41,466 Interest bearing ​ ​ 284,972 ​ ​ 294,362 Total deposits ​ ​ 334,162 ​ ​ 335,828 Advances from Federal Home Loan Bank (FHLB) ​ ​ 48,772 ​ ​ 49,878 Accrued expenses and other liabilities ​ ​ 3,016 ​ ​ 5,643 Total liabilities ​ ​ 385,950 ​ ​ 391,349 Shareholders' Equity ​ ​ ​ ​ ​ ​ Preferred stock, $ 0.01 par value, 1,000,000 shares authorized, none issued and outstanding ​ ​ — ​ ​ — Common stock, $ 0.01 par value, 19,000,000 shares authorized, 3,366,516 issued and 2,937,743 outstanding at September 30, 2025 and 3,370,425 issued and 3,088,152 outstanding at December 31, 2024 ​ ​ 34 ​ ​ 34 Additional paid in capital ​ ​ 33,010 ​ ​ 32,493 Retained earnings ​ ​ 31,804 ​ ​ 30,163 Accumulated other comprehensive loss ​ ​ ( 3,255 ) ​ ​ ( 4,766 ) Unearned Employee Stock Ownership Program (ESOP) shares, at cost ​ ​ ( 1,934 ) ​ ​ ( 2,039 ) Treasury stock, at cost ( 428,773 shares at September 30, 2025 and 282,273 shares at December 31, 2024) ​ ​ ( 6,124 ) ​ ​ ( 3,777 ) Total shareholders' equity ​ ​ 53,535 ​ ​ 52,108 ​ ​ $ 439,485 ​ $ 443,457 See Notes to Consolidated Financial Statements ​ 1 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Consolidated Statements of Operations (Unaudited) Three and Nine Months Ended September 30, 2025 and 2024 (Amounts in thousands, except share and per share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ ​ 2025 2024 2025 2024 Interest Income ​ ​ ​ ​ Loans, including fees ​ $ 4,334 ​ $ 4,043 ​ $ 13,005 ​ $ 11,553 Debt securities ​ ​ ​ ​ ​ ​ ​ Taxable ​ 1,055 ​ 1,033 ​ 2,984 ​ 3,407 Non taxable ​ 45 ​ 37 ​ 136 ​ 119 Dividends on restricted investments ​ 35 ​ 55 ​ 129 ​ 164 Federal funds sold ​ 49 ​ 274 ​ 166 ​ 580 Deposits with banks ​ 46 ​ 125 ​ 262 ​ 603 Financial derivative ​ — ​ 135 ​ ( 10 ) ​ 375 Total interest income ​ 5,564 ​ 5,702 ​ 16,672 ​ 16,801 Interest Expense ​ ​ ​ ​ ​ ​ ​ ​ Deposits ​ 1,781 ​ 1,843 ​ 5,377 ​ 5,413 Advances from FHLB ​ 504 ​ 643 ​ 1,508 ​ 2,022 Other ​ 2 ​ 3 ​ 8 ​ 7 Total interest expense ​ 2,287 ​ 2,489 ​ 6,893 ​ 7,442 Net Interest Income ​ 3,277 ​ 3,213 ​ 9,779 ​ 9,359 Provision for Credit Losses - loans ​ ​ 487 ​ ​ 299 ​ ​ 513 ​ ​ 211 Provision (Credit) for Credit Losses - off-balance sheet credit exposures ​ ​ — ​ ​ ( 36 ) ​ ​ 45 ​ ​ ( 101 ) Provision for Credit Losses ​ 487 ​ 263 ​ 558 ​ 110 Net Interest Income After Provision for Credit Losses ​ 2,790 ​ 2,950 ​ 9,221 ​ 9,249 Noninterest Income ​ ​ ​ ​ ​ ​ ​ ​ Service charges on deposit accounts ​ 188 ​ 172 ​ 531 ​ 507 Other service charges and fees ​ 293 ​ 315 ​ 879 ​ 931 Net loss on securities transactions ​ — ​ ( 1 ) ​ — ​ ( 1 ) Net loss on sale of loans ​ — ​ — ​ — ​ ( 3,850 ) Net (loss) gain on sale of other real estate owned ​ ( 17 ) ​ — ​ ( 19 ) ​ 37 Fair value adjustments to other real estate owned ​ 547 ​ — ​ 495 ​ ( 78 ) Net loss on premises and equipment ​ — ​ ( 4 ) ​ — ​ ( 287 ) Net appreciation on bank-owned life insurance ​ 42 ​ 43 ​ 125 ​ 86 Gain on equity investment ​ ​ — ​ ​ — ​ ​ 73 ​ ​ — Other income ​ 74 ​ 5 ​ 84 ​ 16 Total noninterest income (loss) ​ 1,127 ​ 530 ​ 2,168 ​ ( 2,639 ) Noninterest Expenses ​ ​ ​ ​ ​ ​ ​ ​ Salaries and employee benefits ​ 1,566 ​ 1,635 ​ 4,789 ​ 4,944 Occupancy and equipment expense ​ 304 ​ 261 ​ 817 ​ 819 Data processing ​ 270 ​ 233 ​ 748 ​ 707 Technology expense ​ 104 ​ 62 ​ 237 ​ 365 Contract services ​ 67 ​ 64 ​ 197 ​ 198 Director fees ​ 53 ​ 71 ​ 195 ​ 233 Other expense ​ 787 ​ 551 ​ 2,069 ​ 1,736 Total noninterest expense ​ 3,151 ​ 2,877 ​ 9,052 ​ 9,002 Income (Loss) Before Income Taxes ​ 766 ​ 603 ​ 2,337 ​ ( 2,392 ) Income Tax Expense (Benefit) ​ 86 ​ 88 ​ 336 ​ ( 570 ) Net Income (Loss) ​ $ 680 ​ $ 515 ​ $ 2,001 ​ $ ( 1,822 ) Earnings (Loss) per share - basic ​ $ 0.25 ​ $ 0.18 ​ $ 0.71 ​ $ ( 0.62 ) Earnings (Loss) per share - diluted ​ $ 0.24 ​ $ 0.17 ​ $ 0.69 ​ $ ( 0.60 ) Weighted-average shares outstanding - basic ​ ​ 2,769,294 ​ ​ 2,936,526 ​ ​ 2,820,313 ​ ​ 2,959,766 Weighted-average shares outstanding - diluted ​ ​ 2,865,622 ​ ​ 3,007,265 ​ ​ 2,913,865 ​ ​ 3,030,381 See Notes to Consolidated Financial Statements ​ 2 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Consolidated Statements of Comprehensive Income (Loss) (Unaudited) Three and Nine Months Ended September 30, 2025 and 2024 (Amounts in thousands, except share and per share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2025 2024 2025 2024 Net Income (Loss) ​ $ 680 ​ $ 515 ​ $ 2,001 ​ $ ( 1,822 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other items of comprehensive income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Debt Securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net changes in fair value of available for sale securities, before tax ​ 1,142 ​ 1,722 ​ 2,330 ​ 2,120 Reclassification adjustment for realized loss on sale of investment securities included in net income (loss), before tax ​ ​ — ​ ​ 1 ​ ​ — ​ ​ 1 Net changes in fair value of available for sale securities hedged, before tax ​ — ​ ( 785 ) ​ ( 417 ) ​ ( 268 ) Total other items of comprehensive income, before tax ​ 1,142 ​ 938 ​ 1,913 ​ 1,853 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax expense related to other items of comprehensive income ​ ( 239 ) ​ ( 196 ) ​ ( 402 ) ​ ( 388 ) Total other items of comprehensive income, after tax ​ 903 ​ 742 ​ 1,511 ​ 1,465 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive Income (Loss) ​ $ 1,583 ​ $ 1,257 ​ $ 3,512 ​ $ ( 357 ) See Notes to Consolidated Financial Statements ​ ​ 3 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Consolidated Statements of Shareholders’ Equity (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share and per share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ Other ​ Unearned ​ ​ ​ Total ​ ​ Preferred ​ Common ​ Paid In ​ Retained ​ Comprehensive ​ ESOP ​ Treasury ​ Shareholders' Three Months Ended September 30, 2025 and 2024 ​ Stock ​ Stock ​ Capital ​ Earnings ​ Loss ​ Shares ​ Stock ​ Equity Balance at July 1, 2025 ​ $ — ​ $ 34 ​ $ 32,839 ​ $ 31,242 ​ $ ( 4,158 ) ​ $ ( 1,970 ) ​ $ ( 5,118 ) ​ $ 52,869 Net income ​ — ​ — ​ — ​ 680 ​ — ​ — ​ — ​ 680 Stock based compensation expense ​ ​ — ​ ​ — ​ ​ 151 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 151 Other comprehensive income, net of tax ​ — ​ — ​ — ​ — ​ 903 ​ — ​ — ​ 903 Cash dividend declared ($ 0.04 per share) ​ — ​ — ​ — ​ ( 118 ) ​ — ​ — ​ — ​ ( 118 ) ESOP shares committed to be released, 3,453 shares ​ — ​ — ​ 20 ​ — ​ — ​ 36 ​ — ​ 56 Treasury stock purchased, 62,000 shares ​ — ​ — ​ — ​ — ​ — ​ — ​ ( 1,006 ) ​ ( 1,006 ) Balance at September 30, 2025 ​ $ — ​ $ 34 ​ $ 33,010 ​ $ 31,804 ​ $ ( 3,255 ) ​ $ ( 1,934 ) ​ $ ( 6,124 ) ​ $ 53,535 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at July 1, 2024 ​ $ — ​ $ 34 ​ $ 32,145 ​ $ 29,380 ​ $ ( 4,869 ) ​ $ ( 2,132 ) ​ $ ( 2,783 ) ​ $ 51,775 Net income ​ — ​ — ​ — ​ 515 ​ — ​ — ​ — ​ 515 Stock based compensation expense ​ ​ — ​ ​ — ​ ​ 177 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 177 Other comprehensive income, net of tax ​ — ​ — ​ — ​ — ​ 742 ​ — ​ — ​ 742 Cash dividend declared ($ 0.04 per share) ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 125 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 125 ) ESOP shares committed to be released, 3,277 shares ​ — ​ — ​ 13 ​ — ​ — ​ 33 ​ — ​ 46 Treasury stock purchased, 29,331 shares ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 418 ) ​ ​ ( 418 ) Balance at September 30, 2024 ​ $ — ​ $ 34 ​ $ 32,335 ​ $ 29,770 ​ $ ( 4,127 ) ​ $ ( 2,099 ) ​ $ ( 3,201 ) ​ $ 52,712 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ Other ​ Unearned ​ ​ ​ Total ​ ​ Preferred ​ Common ​ Paid In ​ Retained ​ Comprehensive ​ ESOP ​ Treasury ​ Shareholders' Nine Months Ended September 30, 2025 and 2024 ​ Stock ​ Stock ​ Capital ​ Earnings ​ Loss ​ Shares ​ Stock ​ Equity Balance at January 1, 2025 ​ $ — ​ $ 34 ​ $ 32,493 ​ $ 30,163 ​ $ ( 4,766 ) ​ $ ( 2,039 ) ​ $ ( 3,777 ) ​ $ 52,108 Net income ​ — ​ — ​ — ​ 2,001 ​ — ​ — ​ — ​ 2,001 Stock based compensation expense ​ ​ — ​ ​ — ​ ​ 456 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 456 Other comprehensive income, net of tax ​ — ​ — ​ — ​ — ​ 1,511 ​ — ​ — ​ 1,511 Cash dividend declared ($ 0.04 per share) ​ — ​ — ​ — ​ ( 360 ) ​ — ​ — ​ — ​ ( 360 ) ESOP shares committed to be released, 10,358 shares ​ — ​ — ​ 61 ​ — ​ — ​ 105 ​ — ​ 166 Treasury stock purchased, 146,500 shares ​ — ​ — ​ — ​ — ​ — ​ — ​ ( 2,347 ) ​ ( 2,347 ) Balance at September 30, 2025 ​ $ — ​ $ 34 ​ $ 33,010 ​ $ 31,804 ​ $ ( 3,255 ) ​ $ ( 1,934 ) ​ $ ( 6,124 ) ​ $ 53,535 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at January 1, 2024 ​ $ — ​ $ 34 ​ $ 31,671 ​ $ 31,972 ​ $ ( 5,592 ) ​ $ ( 2,197 ) ​ $ ( 2,199 ) ​ $ 53,689 Net loss ​ — ​ — ​ — ​ ( 1,822 ) ​ — ​ — ​ — ​ ( 1,822 ) Stock based compensation expense ​ ​ — ​ ​ — ​ ​ 623 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 623 Other comprehensive income, net of tax ​ — ​ — ​ — ​ — ​ 1,465 ​ — ​ — ​ 1,465 Cash dividend declared ($ 0.04 per share) ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 380 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 380 ) ESOP shares committed to be released, 9,831 shares ​ — ​ — ​ 41 ​ — ​ — ​ 98 ​ — ​ 139 Treasury stock purchased, 69,931 shares ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 1,002 ) ​ ​ ( 1,002 ) Balance at September 30, 2024 ​ $ — ​ $ 34 ​ $ 32,335 ​ $ 29,770 ​ $ ( 4,127 ) ​ $ ( 2,099 ) ​ $ ( 3,201 ) ​ $ 52,712 ​ ​ See Notes to Consolidated Financial Statements ​ 4 Table of Contents ​ Texas Community Bancshares, Inc. and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share and per share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended ​ ​ September 30, ​ 2025 2024 Operating Activities ​ ​ Net income (loss) ​ $ 2,001 ​ $ ( 1,822 ) Adjustments to reconcile net income (loss) to net cash from operating activities ​ ​ Provision for credit losses - loans ​ ​ 513 ​ ​ 211 Provision (credit) for credit losses - off-balance sheet credit exposures ​ 45 ​ ( 101 ) Net (accretion) amortization of securities ​ ( 99 ) ​ 42 Depreciation and amortization ​ 442 ​ 429 Net realized loss on sales of securities available for sale ​ — ​ 1 Net unrealized gain on discontinued financial derivative ​ ​ 463 ​ ​ — Stock dividends on restricted investments ​ ​ ( 122 ) ​ ​ ( 158 ) Net increase on restricted investments ​ ​ ( 39 ) ​ ​ — Loss on sale of loans ​ ​ — ​ ​ 3,850 Loss on disposal of fixed assets ​ — ​ 287 Appreciation on bank-owned life insurance ​ ( 125 ) ​ ( 86 ) ESOP compensation expense for allocated shares ​ ​ 166 ​ ​ 139 Loss (gain) on sale other real estate owned ​ ​ 19 ​ ​ ( 37 ) Fair value adjustment on other real estate owned ​ ​ ( 495 ) ​ ​ 78 Stock-based compensation ​ 456 ​ 623 Deferred income tax expense (benefit) ​ 274 ​ ( 521 ) Loss on fair value adjustment of fair value hedges ​ 10 ​ ( 12 ) Net change in ​ ​ ​ Accrued interest receivable ​ 314 ​ 5 Other assets ​ ( 119 ) ​ ( 518 ) Accrued expenses and other liabilities ​ ( 2,639 ) ​ ( 549 ) Net Cash from Operating Activities ​ 1,065 ​ 1,861 Investing Activities ​ ​ Net change in interest bearing deposits in banks ​ 8,423 ​ 9,110 Activity in available for sale securities ​ ​ ​ ​ ​ ​ Purchases ​ ( 21,186 ) ​ ( 3,474 ) Sales ​ — ​ 5,499 Maturities, prepayments and calls ​ ​ 12,513 ​ ​ 12,799 Activity in held to maturity securities ​ ​ ​ Maturities, prepayments and calls ​ 2,953 ​ 2,994 Redemptions of restricted investments ​ 1,096 ​ — Purchases of restricted investments ​ ( 146 ) ​ ( 98 ) Loan originations and principal collections, net ​ ( 726 ) ​ ( 38,514 ) Net decrease (increase) in net investment in direct financing leases ​ 64 ​ ( 1,294 ) Proceeds from sale of loans, originally classified as loans held for investment ​ — ​ 22,971 Proceeds from sales of other real estate owned ​ 568 ​ 49 Additions of premises and equipment ​ ( 252 ) ​ ( 1,192 ) Net Cash from Investing Activities ​ 3,307 ​ 8,850 Financing Activities ​ ​ Net (decrease) increase in deposits ​ ( 1,666 ) ​ 9,066 Advances from FHLB and other borrowings ​ 3,052 ​ 52 Payments on FHLB and other borrowings ​ ( 4,158 ) ​ ( 13,752 ) Cash dividends declared and paid ​ ( 360 ) ​ ( 380 ) Purchases of treasury stock ​ ( 2,347 ) ​ ( 1,002 ) Net Cash used for Financing Activities ​ ( 5,479 ) ​ ( 6,016 ) Net Change in Cash and Cash Equivalents ​ ( 1,107 ) ​ 4,695 Cash and Cash Equivalents at Beginning of Period ​ 13,290 ​ 13,060 Cash and Cash Equivalents at End of Period ​ $ 12,183 ​ $ 17,755 ​ See Notes to Consolidated Financial Statements ​ ​ 5 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) Note 1 - Summary of Significant Accounting Policies General Texas Community Bancshares, Inc. (the “Company”), a Maryland corporation and registered bank holding company, was incorporated on March 5, 2021. The Company became the bank holding company for Broadstreet Bank, SSB (the “Bank”), formerly known as Mineola Community Bank, SSB prior to December 4, 2023, as part of the Bank’s mutual to stock conversion completed on July 14, 2021. The Company’s shares trade on the NASDAQ under the symbol TCBS. Voting rights in the Company are held and exercised exclusively by the shareholders of the Company. The Company’s primary source of revenue is providing loans and banking services to consumers and commercial customers in Mineola, Texas, and the surrounding area and the Dallas-Fort Worth Metroplex. The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America (GAAP) and to general practices of the banking industry. Policies and practices which materially affect the determination of financial position, results of operations and cash flows are summarized as follows: Interim Financial Statements The interim unaudited consolidated financial statements as of September 30, 2025, and for the three and nine months ended September 30, 2025 and 2024, are unaudited and reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. Such adjustments are the only adjustments contained in these unaudited consolidated financial statements. These unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission, and therefore certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been omitted. The results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of the results to be achieved for the year ending December 31, 2025, or any other period. Certain prior period data presented in the consolidated financial statements has been revised to conform with the current period presentation. The accompanying consolidated financial statements have been derived from and should be read in conjunction with the audited consolidated financial statements, and notes, contained in the Company’s Form 10-K for the year ended December 31, 2024. Reference is made to the accounting policies of the Company described in the Notes to Consolidated Financial Statements contained in Form 10-K for the year ended December 31, 2024. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, which include the Bank and its wholly-owned subsidiary, Mineola Financial Service Corporation, which is inactive. All significant intercompany transactions and balances have been eliminated in consolidation. Use of Estimates In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statements of financial condition and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses. 6 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) ​ Note 2 – Earnings Per Share Basic earnings per share is computed by dividing the net income or loss by the weighted-average number of common shares outstanding during the period, including allocated and committed to be released ESOP shares and restricted stock awards granted during the applicable period. Diluted earnings per share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ Nine Months Ended ​ September 30, ​ ​ September 30, ​ 2025 2024 ​ 2025 2024 Net Income (Loss) ​ $ 680 ​ $ 515 ​ ​ $ 2,001 ​ $ ( 1,822 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding for basic earnings per share: ​ ​ ​ ​ ​ Average shares outstanding ​ 2,966,167 ​ 3,149,616 ​ ​ 3,020,671 ​ 3,178,212 Less: average unearned ESOP shares ​ ( 196,873 ) ​ ( 213,090 ) ​ ​ ( 200,358 ) ​ ( 218,446 ) Weighted average shares outstanding for basic earnings per share ​ 2,769,294 ​ 2,936,526 ​ ​ 2,820,313 ​ 2,959,766 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional dilutive shares ​ 96,328 ​ 70,739 ​ ​ 93,552 ​ 70,615 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding for dilutive earnings per share ​ 2,865,622 ​ 3,007,265 ​ ​ 2,913,865 ​ 3,030,381 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic earnings (loss) per share ​ $ 0.25 ​ $ 0.18 ​ ​ $ 0.71 ​ $ ( 0.62 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dilutive earnings (loss) per share ​ $ 0.24 ​ $ 0.17 ​ ​ $ 0.69 ​ $ ( 0.60 ) ​ Nonvested restricted stock awards for 14,332 and 64,888 shares of common stock were not considered in computing diluted earnings per share for the nine months ended September 30, 2025 and 2024, respectively, because they were antidilutive. Nonvested restricted stock awards for 64,888 shares of common stock were not considered in computing diluted earnings per share for the three months ended September 30, 2024. There were no antidilutive restricted stock awards for the three months ended September 30, 2025. Stock options for 48,859 and 64,176 shares of common stock have vested, however, were not considered in computing diluted earnings per share for the nine months ended September 30, 2025 and 2024, because they were antidilutive. Stock options for 64,176 shares of common stock have vested, however, were not considered in computing diluted earnings per share for the three months ended September 30, 2024, because they were antidilutive. There were no antidilutive stock options for the three months ended September 30, 2025. 7 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) Note 3 - Debt Securities The amortized cost and fair value of securities, with gross unrealized gains and losses, follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ ​ ​ ​ ​ Gross ​ Gross ​ Estimated ​ ​ Amortized ​ Unrealized ​ Unrealized ​ Fair Available for Sale Cost Gains Losses Value Debt Securities: ​ ​ ​ ​ Residential mortgage-backed ​ $ 15,042 ​ $ 64 ​ $ ( 745 ) ​ $ 14,361 Collateralized mortgage obligations ​ 49,633 ​ 368 ​ ( 1,546 ) ​ 48,455 State and municipal ​ 14,827 ​ 20 ​ ( 1,280 ) ​ 13,567 Corporate bonds ​ 10,515 ​ 47 ​ ( 1,049 ) ​ 9,513 Total securities available for sale ​ $ 90,017 ​ $ 499 ​ $ ( 4,620 ) ​ $ 85,896 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Held to Maturity ​ ​ ​ ​ Debt Securities: ​ ​ ​ ​ Residential mortgage-backed ​ $ 16,807 ​ $ — ​ $ ( 1,709 ) ​ $ 15,098 State and municipal ​ ​ 1,200 ​ ​ — ​ ​ ( 5 ) ​ ​ 1,195 U.S. Government and agency ​ 1,067 ​ — ​ ( 1 ) ​ 1,066 Total securities held to maturity ​ $ 19,074 ​ $ — ​ $ ( 1,715 ) ​ $ 17,359 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ ​ ​ ​ ​ Gross ​ Gross ​ Estimated ​ ​ Amortized ​ Unrealized ​ Unrealized ​ Fair Available for Sale Cost Gains Losses Value Debt Securities: ​ ​ ​ ​ Residential mortgage-backed ​ $ 10,356 ​ $ — ​ $ ( 1,205 ) ​ $ 9,151 Collateralized mortgage obligations ​ 48,808 ​ 21 ​ ( 2,261 ) ​ 46,568 State and municipal ​ 15,124 ​ — ​ ( 1,847 ) ​ 13,277 Corporate bonds ​ 7,352 ​ — ​ ( 1,159 ) ​ 6,193 Total securities available for sale ​ $ 81,640 ​ $ 21 ​ $ ( 6,472 ) ​ $ 75,189 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Held to Maturity ​ ​ ​ ​ Debt Securities: ​ ​ ​ ​ Residential mortgage-backed ​ $ 19,090 ​ $ — ​ $ ( 2,521 ) ​ $ 16,569 State and municipal ​ 1,567 ​ — ​ ( 45 ) ​ 1,522 U.S. Government and agency ​ ​ 1,439 ​ ​ 1 ​ ​ — ​ ​ 1,440 Total securities held to maturity ​ $ 22,096 ​ $ 1 ​ $ ( 2,566 ) ​ $ 19,531 ​ During the three and nine months ended September 30, 2025, the Company had no sales of available for sale securities or held to maturity securities. During the three and nine months ended September 30, 2024, the Company had sales of available for sale securities with an amortized cost basis of $ 5,500 with a loss of $ 1 and no sales of held to maturity securities. At September 30, 2025 and December 31, 2024, securities with a fair value of $ 17,467 and $ 17,862 , respectively, were pledged to secure public deposits and for other purposes required or permitted by law. 8 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) The amortized cost and fair value of debt securities by contractual maturity at September 30, 2025, follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available for Sale ​ Held to Maturity ​ ​ ​ ​ ​ Estimated ​ ​ ​ ​ Estimated ​ ​ Amortized ​ Fair ​ Amortized ​ Fair ​ Cost Value Cost Value Due in one year ​ $ — ​ $ — ​ $ — ​ $ — Due from one to five years ​ 5,057 ​ 4,950 ​ 135 ​ 130 Due in five to ten years ​ 14,018 ​ 12,979 ​ 1,067 ​ 1,065 After ten years ​ 6,267 ​ 5,151 ​ 1,065 ​ 1,066 Residential mortgage-backed ​ 15,042 ​ 14,361 ​ 16,807 ​ 15,098 Collateralized mortgage obligations ​ 49,633 ​ 48,455 ​ — ​ — Total ​ $ 90,017 ​ $ 85,896 ​ $ 19,074 ​ $ 17,359 ​ The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ ​ Less than 12 months ​ 12 months or longer ​ ​ ​ ​ ​ Gross ​ ​ ​ ​ Gross ​ ​ Fair ​ Unrealized ​ Fair ​ Unrealized Category (number of securities) Value Losses Value Losses Residential mortgage-backed (0,83) ​ $ — ​ $ — ​ $ 23,470 ​ $ ( 2,454 ) Collateralized mortgage obligations (7,13) ​ 12,964 ​ ( 161 ) ​ 18,489 ​ ( 1,385 ) State and municipal (0,14) ​ — ​ — ​ 11,856 ​ ( 1,285 ) Corporate bonds (2,13) ​ 1,488 ​ ( 12 ) ​ 5,463 ​ ( 1,037 ) U.S. Government and agency (1,0) ​ 1,065 ​ ( 1 ) ​ — ​ — Total ​ $ 15,517 ​ $ ( 174 ) ​ $ 59,278 ​ $ ( 6,161 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ ​ Less than 12 months ​ 12 months or longer ​ ​ ​ ​ ​ Gross ​ ​ ​ ​ Gross ​ ​ Fair ​ Unrealized ​ Fair ​ Unrealized Category (number of securities) Value Losses Value Losses Residential mortgage-backed (1,83) ​ $ 434 ​ $ ( 20 ) ​ $ 25,287 ​ $ ( 3,706 ) Collateralized mortgage obligations (8,15) ​ 15,185 ​ ( 224 ) ​ 22,316 ​ ( 2,037 ) State and municipal (1,17) ​ 309 ​ ( 1 ) ​ 14,126 ​ ( 1,891 ) Corporate bonds (2,12) ​ 1,581 ​ ( 20 ) ​ 4,611 ​ ( 1,139 ) Total ​ $ 17,509 ​ $ ( 265 ) ​ $ 66,340 ​ $ ( 8,773 ) ​ At September 30, 2025 and December 31, 2024, the Company had investment securities with approximately $ 6,161 and $ 8,773 , respectively, in unrealized losses, which have been in continuous loss positions for more than twelve months. The Company’s assessments indicated that the cause of the unrealized losses was primarily the change in market interest rates and not the issuers’ financial condition or downgrades by rating agencies. The Company has the ability and intent to hold such securities until maturity. 9 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) The Company monitors credit quality of debt securities held-to-maturity through the use of nationally recognized credit ratings. The Company monitors credit ratings on a continual basis. The following table summarizes bond ratings for the Company’s held-to-maturity portfolio, based upon amortized cost, issued by state and political subdivisions and other securities as of September 30, 2025 and December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ Residential mortgage-backed State and municipal U.S Government and agency AAA ​ $ 16,807 ​ $ 1,065 ​ $ 1,067 Baa1 ​ ​ — ​ ​ 135 ​ ​ — ​ ​ $ 16,807 ​ $ 1,200 ​ $ 1,067 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ ​ Residential mortgage-backed ​ State and municipal ​ U.S Government and agency AAA ​ $ 19,090 ​ $ 1,433 ​ $ 1,439 Baa1 ​ ​ — ​ ​ 134 ​ ​ — ​ ​ $ 19,090 ​ $ 1,567 ​ $ 1,439 ​ As of September 30, 2025 and December 31, 2024, there were no securities held to maturity on nonaccrual status or past due status. ​ Mortgage-backed Securities and Collateralized Mortgage Obligations The unrealized losses on the Company’s investments in mortgage-backed securities and collateralized mortgage obligations were caused by market interest rate increases and changes in prepayment speeds and not credit quality. It is expected that the securities would not be settled at a price less than the amortized cost basis of the Company’s investments because the Company does not intend to sell the investments before recovery of their amortized cost basis, which may be maturity. The unrealized losses on the Company’s investment in mortgage-backed securities have not been recognized into income and no allowance for credit losses was established at September 30, 2025 or December 31, 2024. U.S. Government and Agency Securities The unrealized losses on the Company’s investments in U.S. government and agency securities have not been recognized into income and no allowance for credit losses was established because the bonds are of high credit quality, management does not intend to sell, and it is likely that management will not be required to sell the securities prior to their anticipated recovery, which may be at maturity. The decline in fair value is largely due to increases in market interest rates and not credit quality deterioration and the fair value is expected to recover as the bonds approach maturity. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost basis of the Company’s investments. Therefore, an allowance for credit losses is deemed unnecessary at September 30, 2025 and December 31, 2024. 10 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) Municipal Securities and Corporate Bonds The unrealized losses on the Company’s investments in state and municipal securities and corporate bonds have not been recognized into income and no allowance for credit losses was established because the bonds are of high credit quality, management does not intend to sell, and it is likely that management will not be required to sell the securities prior to their anticipated recovery, which may be at maturity. The decline in fair value is largely due to increases in market interest rates and not credit quality deterioration and the fair value is expected to recover as the bonds approach maturity. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost basis of the Company’s investments. Therefore, an allowance for credit losses is deemed unnecessary at September 30, 2025 and December 31, 2024. ​ Note 4 - Loans and Allowance for Credit Losses A summary of the balances of loans and leases follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2025 2024 Real estate ​ ​ ​ ​ ​ ​ Construction and land ​ $ 48,851 ​ $ 54,136 Farmland ​ ​ 9,916 ​ ​ 9,540 1-4 Residential and multi-family ​ ​ 151,348 ​ ​ 156,068 Commercial Real Estate ​ ​ 55,216 ​ ​ 56,068 Total real estate ​ ​ 265,331 ​ ​ 275,812 Agriculture ​ 37 ​ 55 Commercial ​ 5,516 ​ 6,315 Municipalities ​ ​ 13,005 ​ ​ 9,253 Consumer and other ​ 4,287 ​ 5,495 Subtotal ​ 288,176 ​ 296,930 Less: allowance for credit losses ​ ( 3,247 ) ​ ( 3,222 ) Loans and leases, net ​ $ 284,929 ​ $ 293,708 ​ Direct financing leases of $ 1,228 and $ 1,292 are included in consumer and other loans at September 30, 2025 and December 31, 2024, respectively. 11 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) The following tables set forth information regarding the activity in the allowance for credit losses for the three and nine months ended September 30, 2025 and September 30, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ Real Estate ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses: Construction and Land Farmland 1-4 Residential & multi-family Commercial real estate Agriculture Commercial Municipalities Consumer and other Total Three months ended ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning balance, July 1, 2025 ​ $ 553 ​ $ 77 ​ $ 1,436 ​ $ 638 ​ $ 1 ​ $ 356 ​ $ 92 ​ $ 74 ​ $ 3,227 Provision (credit) for credit losses ​ 483 ​ 5 ​ ( 38 ) ​ 17 ​ ( 1 ) ​ 11 ​ 1 ​ 9 ​ 487 Loans charged-off ​ ( 453 ) ​ — ​ — ​ — ​ — ​ — ​ — ​ ( 15 ) ​ ( 468 ) Recoveries ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ 1 ​ 1 Balance, September 30, 2025 ​ $ 583 ​ $ 82 ​ $ 1,398 ​ $ 655 ​ $ — ​ $ 367 ​ $ 93 ​ $ 69 ​ $ 3,247 Nine months ended ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, January 1, 2025 ​ $ 632 ​ $ 74 ​ $ 1,355 ​ $ 605 ​ $ 1 ​ $ 375 ​ $ 83 ​ $ 97 ​ $ 3,222 Provision (credit) for credit losses ​ 404 ​ 8 ​ 46 ​ 50 ​ ( 1 ) ​ ( 8 ) ​ 10 ​ 4 ​ 513 Loans charged-off ​ ( 453 ) ​ — ​ ( 3 ) ​ — ​ — ​ — ​ — ​ ( 36 ) ​ ( 492 ) Recoveries ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ 4 ​ 4 Balance, September 30, 2025 ​ $ 583 ​ $ 82 ​ $ 1,398 ​ $ 655 ​ $ — ​ $ 367 ​ $ 93 ​ $ 69 ​ $ 3,247 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2024 ​ Real Estate ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses: Construction and Land Farmland 1-4 Residential & multi-family Commercial real estate Agriculture Commercial Municipalities Consumer and other Total Three months ended ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning balance, July 1, 2024 ​ $ 431 ​ $ 55 ​ $ 1,398 ​ $ 452 ​ $ 1 ​ $ 448 ​ $ 69 ​ $ 121 ​ $ 2,975 Provision for credit losses ​ 151 ​ 17 ​ ( 15 ) ​ 124 ​ — ​ 19 ​ 10 ​ ( 7 ) ​ 299 Loans charged-off ​ — ​ — ​ ( 16 ) ​ — ​ — ​ ( 84 ) ​ — ​ ( 5 ) ​ ( 105 ) Recoveries ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ 5 ​ 5 Balance, September 30, 2024 ​ $ 582 ​ $ 72 ​ $ 1,367 ​ $ 576 ​ $ 1 ​ $ 383 ​ $ 79 ​ $ 114 ​ $ 3,174 Nine months ended ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, January 1, 2024 ​ $ 378 ​ $ 66 ​ $ 1,621 ​ $ 482 ​ $ 2 ​ $ 441 ​ $ 18 ​ $ 88 ​ $ 3,096 Provision for credit losses ​ 204 ​ 6 ​ ( 238 ) ​ 94 ​ ( 1 ) ​ 26 ​ 61 ​ 59 ​ 211 Loans charged-off ​ — ​ — ​ ( 16 ) ​ — ​ — ​ ( 84 ) ​ — ​ ( 75 ) ​ ( 175 ) Recoveries ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ 42 ​ 42 Balance, September 30, 2024 ​ $ 582 ​ $ 72 ​ $ 1,367 ​ $ 576 ​ $ 1 ​ $ 383 ​ $ 79 ​ $ 114 ​ $ 3,174 ​ The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 90 days and still accruing as of September 30, 2025 and December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ Nonaccrual without Allowance Nonaccrual with Allowance Loans Past Due Over 90 Days Still Accruing Real estate ​ ​ ​ ​ Construction and land ​ $ — ​ $ — ​ $ — Farmland ​ — ​ — ​ — 1‑4 Residential & multi-family ​ 1,077 ​ — ​ — Commercial real estate ​ 45 ​ — ​ — Agriculture ​ — ​ — ​ — Commercial ​ 80 ​ 990 ​ — Municipalities ​ ​ — ​ ​ — ​ ​ — Consumer and other ​ 5 ​ — ​ — Total ​ $ 1,207 ​ $ 990 ​ $ — ​ 12 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ Nonaccrual without Allowance Nonaccrual with Allowance Loans Past Due Over 90 Days Still Accruing Real estate ​ ​ ​ ​ Construction and land ​ $ 301 ​ $ — ​ $ — Farmland ​ — ​ — ​ — 1‑4 Residential & multi-family ​ 610 ​ — ​ — Commercial real estate ​ 51 ​ — ​ — Agriculture ​ — ​ — ​ — Commercial ​ 23 ​ 1,140 ​ — Municipalities ​ ​ — ​ ​ — ​ ​ — Consumer and other ​ — ​ — ​ — Total ​ $ 985 ​ $ 1,140 ​ $ — ​ The Company did no t recognize any interest income on nonaccrual loans during the three and nine months ended September 30, 2025 or September 30, 2024. The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2025 and December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ Real Estate Accounts Receivable and Inventory Other Real estate ​ ​ ​ ​ 1-4 Residential & multi-family ​ $ 1,203 ​ $ — ​ $ — Commercial real estate ​ 45 ​ — ​ — Commercial ​ — ​ 259 ​ 811 Consumer and other ​ — ​ — ​ 5 Total ​ $ 1,248 ​ $ 259 ​ $ 816 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ Real Estate Accounts Receivable and Inventory Other Real estate ​ ​ ​ ​ Construction and land ​ ​ 301 ​ ​ — ​ ​ — 1-4 Residential & multi-family ​ $ 745 ​ $ — ​ $ — Commercial real estate ​ 51 ​ — ​ — Commercial ​ — ​ 297 ​ 866 Total ​ $ 1,097 ​ $ 297 ​ $ 866 ​ 13 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) The Company had $ 2,323 and $ 2,260 in collateral-dependent loans at September 30, 2025 and December 31, 2024, respectively. Internal Risk Categories A loan is considered collateral-dependent when based on current information and events; it is probable that the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Collateral dependent loans include nonperforming loans (nonaccrual loans), loans performing but with deterioration that leads to doubt regarding collectability. Loans that do not share risk characteristics are evaluated on an individual basis. For collateral-dependent loans, where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the allowance for credit losses is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the present value of expected cash flows from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the fair value of the underlying collateral, less estimated costs to sell. The allowance for credit losses may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the loan. The Company monitors credit quality within its portfolio segments based on primary credit quality indicators. All of the Company’s loans and leases are evaluated using pass rated or reservable criticized as the primary credit quality indicator. The term reservable criticized refers to those loans and leases that are internally classified or listed by the Company as special mention, substandard, doubtful or loss. These assets pose an elevated risk and may have a high probability of default or total loss. The classifications of loans and leases reflect a judgment about the risks of default and loss associated with the loan. The Company reviews the ratings on credits quarterly. Ratings are adjusted to reflect the degree of risk and loss that is felt to be inherent in each credit as of each quarterly reporting period. The methodology is structured so that specific allocations are increased in accordance with deterioration in credit quality (and a corresponding increase in risk and loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk and loss). Credits rated special mention show clear signs of financial weaknesses or deterioration in credit worthiness; however, such concerns are not so pronounced that the Company generally expects to experience significant loss within the short-term. Such credits typically maintain the ability to perform within standard credit terms and credit exposure is not as prominent as credits rated more harshly. Credits rated substandard are those in which the normal repayment of principal and interest may be, or has been, jeopardized by reason of adverse trends or developments of a financial, managerial, economic or political nature, or important weaknesses exist in collateral. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company’s position, and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed. 14 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) Credits rated doubtful are those in which full collection of principal appears highly questionable, and which some degree of loss is anticipated, even though the ultimate amount of loss may not yet be certain and/or other factors exist which could affect collection of debt. Based upon available information, positive action by the Company is required to avert or minimize loss. Credits with this classification have often become collateral dependent and any shortage in collateral or other likely loss amount is recorded as a specific valuation allowance. Credits rated doubtful are generally also placed on nonaccrual. Credits rated loss are those that are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. Pass rated refers to loans that are not considered criticized. In addition to this primary credit quality indicator, the Company uses other credit quality indicators for certain types of loans. The Company evaluates the loan risk grading system definitions and allowance for credit loss methodology on an ongoing basis. No significant changes in methodology were made during the nine months ended September 30, 2025. 15 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) Based on the most recent analysis performed, the risk category of loans by class of loans and gross chargeoffs as of September 30, 2025 and December 31, 2024 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ Term Loans Amortized Cost Basis by Origination Year ​ 2025 2024 2023 2022 2021 Prior Total Construction and land ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Risk rating ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 16,163 ​ $ 20,323 ​ $ 8,743 ​ $ 1,621 ​ $ 593 ​ $ 1,408 ​ $ 48,851 Special mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Doubtful ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Loss ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ $ 16,163 ​ $ 20,323 ​ $ 8,743 ​ $ 1,621 ​ $ 593 ​ $ 1,408 ​ $ 48,851 Current period gross charge-offs ​ $ — ​ $ — ​ $ 453 ​ $ — ​ $ — ​ $ — ​ $ 453 Farmland ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Risk rating ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 1,744 ​ $ 3,006 ​ $ 1,669 ​ $ 1,615 ​ $ 271 ​ $ 1,611 ​ $ 9,916 Special mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Doubtful ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Loss ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ $ 1,744 ​ $ 3,006 ​ $ 1,669 ​ $ 1,615 ​ $ 271 ​ $ 1,611 ​ $ 9,916 1-4 Residential & multi-family ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Risk rating ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 10,194 ​ $ 11,822 ​ $ 28,653 ​ $ 17,273 ​ $ 26,711 ​ $ 53,776 ​ $ 148,429 Special mention ​ ​ — ​ ​ — ​ ​ 217 ​ ​ — ​ ​ 244 ​ ​ 309 ​ ​ 770 Substandard ​ ​ — ​ ​ — ​ ​ 1,361 ​ ​ — ​ ​ — ​ ​ 788 ​ ​ 2,149 Doubtful ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Loss ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ $ 10,194 ​ $ 11,822 ​ $ 30,231 ​ $ 17,273 ​ $ 26,955 ​ $ 54,873 ​ $ 151,348 Current period gross charge-offs ​ $ — ​ $ — ​ $ 3 ​ $ — ​ $ — ​ $ — ​ $ 3 Commercial real estate ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Risk rating ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 2,518 ​ $ 13,742 ​ $ 13,175 ​ $ 4,985 ​ $ 6,896 ​ $ 13,183 ​ $ 54,499 Special mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 672 ​ ​ 672 Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 45 ​ ​ 45 Doubtful ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Loss ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ $ 2,518 ​ $ 13,742 ​ $ 13,175 ​ $ 4,985 ​ $ 6,896 ​ $ 13,900 ​ $ 55,216 Agriculture ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Risk rating ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ — ​ $ — ​ $ 29 ​ $ — ​ $ 8 ​ $ — ​ $ 37 Special mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Doubtful ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Loss ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ $ — ​ $ — ​ $ 29 ​ $ — ​ $ 8 ​ $ — ​ $ 37 Commercial ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Risk rating ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 1,506 ​ $ 1,989 ​ $ 495 ​ $ 233 ​ $ 22 ​ $ 199 ​ $ 4,444 Special mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Substandard ​ ​ — ​ ​ 89 ​ ​ — ​ ​ — ​ ​ 724 ​ ​ 259 ​ ​ 1,072 Doubtful ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Loss ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ $ 1,506 ​ $ 2,078 ​ $ 495 ​ $ 233 ​ $ 746 ​ $ 458 ​ $ 5,516 Municipalities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Risk rating ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 4,079 ​ $ 8,131 ​ $ 795 ​ $ — ​ $ — ​ $ — ​ $ 13,005 Special mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Doubtful ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Loss ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ $ 4,079 ​ $ 8,131 ​ $ 795 ​ $ — ​ $ — ​ $ — ​ $ 13,005 Consumer and other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Risk rating ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 1,239 ​ $ 1,942 ​ $ 428 ​ $ 172 ​ $ 485 ​ $ — ​ $ 4,266 Special mention ​ ​ — ​ ​ — ​ ​ 16 ​ ​ — ​ ​ — ​ ​ — ​ ​ 16 Substandard ​ ​ 5 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 5 Doubtful ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Loss ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ $ 1,244 ​ $ 1,942 ​ $ 444 ​ $ 172 ​ $ 485 ​ $ — ​ $ 4,287 Current period gross charge-offs ​ $ 36 ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ 36 ​ 16 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ Term Loans Amortized Cost Basis by Origination Year ​ 2024 2023 2022 2021 2020 Prior Total Construction and land ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Risk rating ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 26,157 ​ $ 14,188 ​ $ 4,197 ​ $ 619 ​ $ 550 ​ $ 1,140 ​ $ 46,851 Special mention ​ ​ — ​ ​ 6,200 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 6,200 Substandard ​ ​ 30 ​ ​ 754 ​ ​ — ​ ​ 301 ​ ​ — ​ ​ — ​ ​ 1,085 Doubtful ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Loss ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ $ 26,187 ​ $ 21,142 ​ $ 4,197 ​ $ 920 ​ $ 550 ​ $ 1,140 ​ $ 54,136 Farmland ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Risk rating ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 3,141 ​ $ 1,708 ​ $ 1,804 ​ $ 284 ​ $ 486 ​ $ 2,117 ​ $ 9,540 Special mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Doubtful ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Loss ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ $ 3,141 ​ $ 1,708 ​ $ 1,804 ​ $ 284 ​ $ 486 ​ $ 2,117 ​ $ 9,540 1-4 Residential & multi-family ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Risk rating ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 16,084 ​ $ 30,595 ​ $ 19,099 ​ $ 28,452 ​ $ 37,925 ​ $ 22,283 ​ $ 154,438 Special mention ​ ​ — ​ ​ 219 ​ ​ — ​ ​ — ​ ​ — ​ ​ 198 ​ ​ 417 Substandard ​ ​ — ​ ​ 25 ​ ​ — ​ ​ — ​ ​ 92 ​ ​ 1,096 ​ ​ 1,213 Doubtful ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Loss ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ $ 16,084 ​ $ 30,839 ​ $ 19,099 ​ $ 28,452 ​ $ 38,017 ​ $ 23,577 ​ $ 156,068 Current period gross charge-offs ​ $ — ​ $ 16 ​ $ — ​ $ — ​ $ — ​ $ — ​ $ 16 Commercial real estate ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Risk rating ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 15,600 ​ $ 13,526 ​ $ 5,160 ​ $ 7,079 ​ $ 2,953 ​ $ 11,007 ​ $ 55,325 Special mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 301 ​ ​ 301 Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 442 ​ ​ 442 Doubtful ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Loss ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ $ 15,600 ​ $ 13,526 ​ $ 5,160 ​ $ 7,079 ​ $ 2,953 ​ $ 11,750 ​ $ 56,068 Agriculture ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Risk rating ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ — ​ $ 40 ​ $ 1 ​ $ 14 ​ $ — ​ $ — ​ $ 55 Special mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Doubtful ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Loss ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ $ — ​ $ 40 ​ $ 1 ​ $ 14 ​ $ — ​ $ — ​ $ 55 Commercial ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Risk rating ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 3,443 ​ $ 910 ​ $ 345 ​ $ 86 ​ $ 94 ​ $ 265 ​ $ 5,143 Special mention ​ ​ 8 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 8 Substandard ​ ​ 23 ​ ​ — ​ ​ — ​ ​ 844 ​ ​ 57 ​ ​ 240 ​ ​ 1,164 Doubtful ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Loss ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ $ 3,474 ​ $ 910 ​ $ 345 ​ $ 930 ​ $ 151 ​ $ 505 ​ $ 6,315 Current period gross charge-offs ​ $ 84 ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ 84 Municipalities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Risk rating ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 8,408 ​ $ 845 ​ $ — ​ $ — ​ $ — ​ $ — ​ $ 9,253 Special mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Doubtful ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Loss ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ $ 8,408 ​ $ 845 ​ $ — ​ $ — ​ $ — ​ $ — ​ $ 9,253 Consumer and other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Risk rating ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 3,373 ​ $ 906 ​ $ 374 ​ $ 823 ​ $ 13 ​ $ — ​ $ 5,489 Special mention ​ ​ 2 ​ ​ 3 ​ ​ 1 ​ ​ — ​ ​ — ​ ​ — ​ ​ 6 Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Doubtful ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Loss ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ $ 3,375 ​ $ 909 ​ $ 375 ​ $ 823 ​ $ 13 ​ $ — ​ $ 5,495 Current period gross charge-offs ​ $ 66 ​ $ 14 ​ $ 6 ​ $ — ​ $ — ​ $ — ​ $ 86 ​ 17 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. The Company also evaluates credit quality based on the aging status of the loan. The following is an aging analysis for loans as of September 30, 2025 and December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ 30-59 Days Past Due 60-89 Days Past Due 90 Days and Greater Total Past Due Current Total Loans Real estate ​ ​ ​ ​ ​ ​ Construction and land ​ $ — ​ $ — ​ $ — ​ $ — ​ $ 48,851 ​ $ 48,851 Farmland ​ — ​ — ​ — ​ — ​ 9,916 ​ 9,916 1‑4 Residential & multi-family ​ 251 ​ 187 ​ — ​ 438 ​ 150,910 ​ 151,348 Commercial real estate ​ 3,532 ​ — ​ — ​ 3,532 ​ 51,684 ​ 55,216 Agriculture ​ — ​ — ​ — ​ — ​ 37 ​ 37 Commercial ​ 121 ​ 19 ​ 28 ​ 168 ​ 5,348 ​ 5,516 Municipalities ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 13,005 ​ ​ 13,005 Consumer and other ​ 15 ​ — ​ — ​ 15 ​ 4,272 ​ 4,287 Total ​ $ 3,919 ​ $ 206 ​ $ 28 ​ $ 4,153 ​ $ 284,023 ​ $ 288,176 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ 30-59 Days Past Due 60-89 Days Past Due 90 Days and Greater Total Past Due Current Total Loans Real estate ​ ​ ​ ​ ​ ​ Construction and land ​ $ — ​ $ — ​ $ 301 ​ $ 301 ​ $ 53,835 ​ $ 54,136 Farmland ​ — ​ — ​ — ​ — ​ 9,540 ​ 9,540 1‑4 Residential & multi-family ​ 260 ​ 8 ​ 25 ​ 293 ​ 155,775 ​ 156,068 Commercial real estate ​ 301 ​ — ​ — ​ 301 ​ 55,767 ​ 56,068 Agriculture ​ — ​ — ​ — ​ — ​ 55 ​ 55 Commercial ​ 2 ​ — ​ — ​ 2 ​ 6,313 ​ 6,315 Municipalities ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 9,253 ​ ​ 9,253 Consumer and other ​ 2 ​ — ​ — ​ 2 ​ 5,493 ​ 5,495 Total ​ $ 565 ​ $ 8 ​ $ 326 ​ $ 899 ​ $ 296,031 ​ $ 296,930 ​ All interest accrued but not collected for loans that are placed on nonaccrual status or are charged‐off is reversed against interest income. The interest on these loans is accounted for on the cash‐basis or cost‐recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. No interest income was recognized for loans on nonaccrual status for the three and nine months ended September 30, 2025 and 2024. The following table presents interest income recognized on loans that are collateral-dependent and individually reviewed for the three and nine months ended September 30, 2025 and 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2025 2024 ​ 2025 2024 Real estate ​ ​ ​ ​ ​ 1-4 Residential & multi-family ​ $ — ​ $ 1 ​ $ — ​ $ 4 Commercial ​ — ​ 1 ​ — ​ 6 ​ ​ $ — ​ $ 2 ​ $ — ​ $ 10 ​ 18 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) During the three and nine months ended September 30, 2025 and 2024, there were no modifications of loans to borrowers in financial difficulty. There have been no modifications to borrowers with financial difficulty in the three and nine months ended September 30, 2025 and 2024, that subsequently defaulted. The Company has no commitments to loan additional funds to borrowers whose loans have been modified but may on occasion extend financing to these borrowers. Note 5 - Off-Balance-Sheet Activities The Company is a party to credit related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated statements of financial condition. The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. At September 30, 2025 and December 31, 2024, the following financial instruments were outstanding whose contract amounts represent credit risk: ​ ​ ​ ​ ​ ​ ​ ​ ​ Contract Amount ​ September 30, 2025 December 31, 2024 Commitments to extend credit ​ $ 30,127 ​ $ 17,954 ​ Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer. The Bank is party to an agreement with the Federal Reserve Bank of Boston that provides the Bank with a federal funds line of credit in an amount tied to securities on deposit with that bank. The Bank pays no fees for this line of credit and has not drawn upon it. The Bank is party to agreements with its correspondent banks that provide the Bank with unsecured lines for up to $ 8,000 federal funds lines of credit to support overnight funding needs. The Bank pays no fees for these lines of credit and has not drawn upon them. One line renews annually and the other line is in effect until either party changes the terms of the agreement. At September 30, 2025, the Company had no commitments to purchase securities. The Company has no other off-balance sheet arrangements or transactions with unconsolidated, special purpose entities that would expose the Company to liability that is not reflected on the face of the consolidated financial statements. 19 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) Note 6 - Supplemental Cash Flow Information ​ Supplemental disclosure of cash flow information is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended ​ ​ September 30, ​ 2025 2024 Supplemental cash flow information: ​ ​ Cash paid for ​ ​ ​ Interest on deposits ​ $ 5,455 ​ $ 5,396 Interest on FHLB advances ​ 1,505 ​ 2,046 Other interest ​ 8 ​ 7 Income taxes ​ ​ 188 ​ ​ — Non-cash activities ​ ​ ​ ​ ​ ​ Transfer on loans receivable to loans held for sale ​ $ — ​ ​ 26,821 Loan originations to facilitate the sale of other real estate owned ​ ​ — ​ ​ 150 Loans transferred to other real estate owned ​ ​ 8,883 ​ ​ — Premises and equipment transferred to other real estate owned ​ — ​ 558 Lease liabilities arising from obtaining right-of-use assets ​ 290 ​ ​ — ​ ​ ​ ​ ​ Note 7 - Minimum Regulatory Capital Requirements The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgements by the regulators about components, risk weightings, and other factors. The Bank has opted into the Community Bank Leverage Ratio (CBLR) framework, beginning with the Call Report filed for the first quarter of 2020. At September 30, 2025 and December 31, 2024, the Bank’s CBLR ratio was 11.53 % and 10.84 %, respectively, which exceeded all regulatory capital requirements under the CBLR framework, and the Bank was considered to be “well-capitalized.” Under the CBLR framework, banks and their bank holding companies that have less than $10 billion in total consolidated assets and meet other qualifying criteria, including a leverage ratio (equal to tier 1 capital divided by average total consolidated assets) of greater than 9%, are eligible to opt into the CBLR framework. Qualifying community banking organizations that elect to use the CBLR framework and that maintain a leverage ratio of greater than 9% will be considered to have satisfied the generally applicable risk-based and leverage capital requirements in the agencies’ capital rules (generally applicable capital rules) and, if applicable, will be considered to have met the well-capitalized ratio requirements for purposes of section 38 of the Federal Deposit Insurance Act. Accordingly, qualifying community banking organizations that exceed the 9% CBLR are considered to have met: (i) the generally applicable risk-based and leverage capital requirements of the generally applicable capital rules; (ii) the capital ratio requirements in order to be considered well-capitalized under the prompt corrective action framework; (iii) any other applicable capital or leverage requirements. Qualifying community banking organizations 20 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) that elect to be under the CBLR framework generally would be exempt from the current capital framework, including risk-based capital requirements and capital conservation buffer requirements. Note 8 - Fair Value Measurements Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. Authoritative guidance requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, authoritative guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: ● Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. ● Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlation or other means. ● Level 3 Inputs – Significant unobservable inputs that reflect an entity ’ s own assumptions that market participants would use in pricing the assets or liabilities. A description of the valuation methodologies used for assets measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. There were no changes in valuation techniques during either the three and nine months ended September 30, 2025 or the year ended December 21 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) 31, 2024. However, the allowable range of significant unobservable inputs for collateral-dependent loans and other real estate owned was changed to 5 % - 25 % from 10 % - 25 % at September 30, 2025. This change was primarily due to a higher number of larger loans in the portfolio. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed or third-party models that primarily use, as inputs, observable market- based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Available for Sale Securities – Securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U. S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayments speeds, credit information and the bond’s terms and conditions, among other things. Collateral-dependent Loans – Collateral dependent loans are reported at the fair value of the underlying collateral if repayment is expected solely from the collateral. Collateral values are estimated using Level 3 inputs based on internally customized discounting criteria. Other real estate owned – Fair values are valued at the time the loan is foreclosed upon and the asset is transferred from loans or when the asset is transferred into other real estate owned from premises and equipment. The value is based upon primarily third-party appraisals less estimated costs to sell. The appraisals are generally discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the client and the client’s business. Such discounts are typically significant and result in Level 3 classification of inputs for determining fair value. Other real estate owned is reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same or similar factors above. 22 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) ​ The following table summarizes financial assets measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ Level 1 Level 2 Level 3 Total ​ ​ Inputs ​ Inputs ​ Inputs ​ Fair Value Financial assets ​ ​ ​ ​ Available for sale securities ​ ​ ​ ​ Residential mortgage-backed ​ $ — ​ $ 14,361 ​ $ — ​ $ 14,361 Collateralized mortgage obligations ​ ​ — ​ ​ 48,455 ​ ​ — ​ ​ 48,455 State and municipal ​ — ​ 13,567 ​ — ​ 13,567 Corporate bonds ​ ​ — ​ ​ 9,513 ​ ​ — ​ ​ 9,513 Total financial assets ​ $ — ​ $ 85,896 ​ $ — ​ $ 85,896 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ Level 1 Level 2 Level 3 Total ​ ​ Inputs ​ Inputs ​ Inputs ​ Fair Value Financial assets ​ ​ ​ ​ Available for sale securities ​ ​ ​ ​ Residential mortgage-backed ​ $ — ​ $ 9,151 ​ $ — ​ $ 9,151 Collateralized mortgage obligations ​ ​ — ​ ​ 46,568 ​ ​ — ​ ​ 46,568 State and municipal ​ — ​ 13,277 ​ — ​ 13,277 Corporate bonds ​ ​ — ​ ​ 6,193 ​ ​ — ​ ​ 6,193 Derivative instruments ​ ​ — ​ ​ 419 ​ ​ — ​ ​ 419 Total financial assets ​ $ — ​ $ 75,608 ​ $ — ​ $ 75,608 ​ Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). 23 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) The following table summarizes financial and non-financial assets measured at fair value on a nonrecurring basis as of September 30, 2025 and December 31, 2024, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ ​ Level 1 ​ Level 2 ​ Level 3 ​ Total Fair ​ Inputs Inputs Inputs Value Financial assets ​ ​ ​ ​ Collateral-dependent loans ​ $ — ​ $ — ​ $ 702 ​ $ 702 Nonfinancial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other real estate owned ​ ​ — ​ ​ — ​ ​ 9,271 ​ ​ 9,271 ​ ​ $ — ​ $ — ​ $ 9,973 ​ $ 9,973 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ ​ Level 1 ​ Level 2 ​ Level 3 ​ Total Fair ​ Inputs Inputs Inputs Value Financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Collateral-dependent loans ​ $ — ​ $ — ​ $ 861 ​ $ 861 Nonfinancial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other real estate owned ​ ​ — ​ ​ — ​ ​ 480 ​ ​ 480 ​ ​ $ — ​ $ — ​ $ 1,341 ​ $ 1,341 ​ During the three and nine months ended September 30, 2025 and 2024, certain collateral-dependent loans were remeasured and reported at fair value through a specific allocation of the allowance for credit losses based upon the fair value of the underlying collateral. The fair value of collateral dependent loans is determined based on collateral valuations utilizing Level 3 valuation inputs. At September 30, 2025, collateral-dependent loans with a carrying value of $ 990 were reduced by specific valuation allowance allocations totaling $ 288 to a reported fair value of $ 702 . At December 31, 2024, collateral dependent loans with a carrying value of $ 1,140 were reduced by specific valuation allowance allocations totaling $ 279 to a reported fair value of $ 861 . ​ At September 30, 2025, the Company had other real estate owned consisting of one small bank property that was purchased for future expansion, one multi-family property acquired through foreclosure and two land development projects belonging to one customer that were transferred through deeds in lieu of foreclosure. The reported fair value includes a deduction for estimated costs to sell and all properties are currently listed for sale. At December 31, 2024, the Company had other real estate owned consisting of two bank properties that were purchased for future expansion but then listed for sale. ​ The estimated fair value amounts of other real estate owned have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. ​ 24 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) ​ Quantitative Information About Significant Unobservable Inputs Used in Level 3 Fair Value Measurements – The following table represents the Company’s Level 3 financial assets, the valuation techniques used to measure the fair value of those financial assets, the significant unobservable inputs and the ranges of values for those inputs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Significant Range of ​ ​ Fair Value at ​ Principal Valuation ​ Unobservable ​ Significant Input Instrument ​ September 30, 2025 ​ Technique ​ Inputs ​ Values Collateral-dependent loans ​ $ 702 Appraisal of collateral (1) Appraisal adjustment 5 - 25 % ​ ​ ​ ​ ​ ​ ​ ​ ​ Other real estate owned ​ $ 9,271 Appraisal of collateral (1) Appraisal adjustment 5 - 25 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Significant Range of ​ ​ Fair Value at ​ Principal Valuation ​ Unobservable ​ Significant Input Instrument ​ December 31, 2024 ​ Technique ​ Inputs ​ Values Collateral-dependent loans ​ $ 861 ​ Appraisal of collateral (1) ​ Appraisal adjustment ​ 10 - 25 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other real estate owned ​ $ 480 Appraisal of collateral (1) Appraisal adjustment 10 - 25 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. 25 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) The estimated fair values, and related carrying amounts, of the Company’s financial instruments are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ ​ Level 1 ​ Level 2 ​ Level 3 ​ Total ​ Total ​ Inputs Inputs Inputs Fair Value Carrying Value Financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 12,183 ​ $ — ​ $ — ​ $ 12,183 ​ $ 12,183 Interest bearing deposits in banks ​ 1,297 ​ — ​ — ​ 1,297 ​ 1,297 Securities held to maturity ​ — ​ 17,359 ​ — ​ 17,359 ​ 19,074 Loans, net ​ — ​ — ​ 273,877 ​ 273,877 ​ 283,701 Net investment in direct financing leases ​ — ​ — ​ ​ 1,228 ​ 1,228 ​ 1,228 Accrued interest receivable ​ 1,605 ​ — ​ — ​ 1,605 ​ 1,605 Restricted investments carried at cost ​ — ​ ​ 3,463 ​ — ​ 3,463 ​ 3,463 Mortgage servicing rights ​ ​ — ​ ​ — ​ ​ 214 ​ ​ 214 ​ ​ 214 Financial liabilities ​ ​ ​ ​ ​ ​ Deposits ​ — ​ — ​ 305,353 ​ 305,353 ​ 334,162 FHLB advances ​ — ​ — ​ 49,622 ​ 49,622 ​ 48,772 Accrued interest payable ​ 684 ​ — ​ — ​ 684 ​ 684 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ ​ Level 1 ​ Level 2 ​ Level 3 ​ Total ​ Total ​ Inputs Inputs Inputs Fair Value Carrying Value Financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 13,290 ​ $ — ​ $ — ​ $ 13,290 ​ $ 13,290 Interest bearing deposits in banks ​ 9,720 ​ — ​ — ​ 9,720 ​ 9,720 Securities held to maturity ​ — ​ 19,531 ​ — ​ 19,531 ​ 22,096 Loans, net ​ — ​ — ​ 276,028 ​ 276,028 ​ 292,416 Net investment in direct financing leases ​ — ​ — ​ 1,292 ​ 1,292 ​ 1,292 Accrued interest receivable ​ 1,919 ​ — ​ — ​ 1,919 ​ 1,919 Restricted investments carried at cost ​ — ​ 4,252 ​ — ​ 4,252 ​ 4,252 Mortgage servicing rights ​ — ​ — ​ 230 ​ 230 ​ 230 Financial liabilities ​ ​ ​ ​ ​ Deposits ​ — ​ — ​ 302,400 ​ 302,400 ​ 335,828 FHLB advances ​ — ​ — ​ 49,911 ​ 49,911 ​ 49,878 Accrued interest payable ​ 759 ​ — ​ — ​ 759 ​ 759 ​ The following methods and assumptions were used by the Company in estimating fair value disclosures for financial instruments: Cash and cash equivalents and interest-bearing deposits in banks – The carrying value approximates their fair values. Securities held to maturity – Fair values for investment securities are based on quoted market prices or whose value is determined using discounted cash flow methodologies. Loans and net investment in direct financing leases – The fair values for loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms and credit quality. Accrued interest receivable – The carrying value approximates its fair value. 26 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) Restricted investments carried at cost – The carrying value of these investments approximates fair value based on the redemption provisions contained in each. Mortgage servicing rights – Fair values are estimated using discounted cash flows based on current market rates of interest. Deposits – The fair values disclosed for demand deposits (for example, interest and noninterest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The carrying amounts of variable-rate, fixed-term money market accounts and certificates of deposit approximate their fair values at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates on comparable instruments to a schedule of aggregated expected monthly maturities on time deposits. FHLB advances – Current market rates for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt. Accrued interest payable – The carrying value approximates the fair value. Note 9 - Employee Stock Ownership Plan In connection with the mutual to stock conversion completed on July 14, 2021, the Company established an Employee Stock Ownership Plan for the exclusive benefit of eligible employees. The ESOP borrowed funds from the Company in an amount sufficient to purchase 260,621 shares (approximately 8.0 % of the common stock issued in connection with the conversion). The loan is secured by the unallocated ESOP shares and will be repaid by the ESOP with funds from contributions made by the Company and dividends received by the ESOP. Contributions will be applied to repay interest on the loan first, and then the remainder will be applied to principal. The loan is expected to be repaid over a period of up to 20 years . Shares purchased with the loan proceeds are held in a suspense account for allocation among participants as the loan is repaid. Contributions to the ESOP and shares released from the suspense account are allocated among participants in proportion to their compensation. Participants will vest in their accrued benefits determined by the years of service for vesting purposes. Vesting is accelerated upon retirement, death or disability of the participant, or a change in control of the Company or the Bank. Forfeitures will be reallocated to remaining participants. Benefits may be payable upon retirement, death, disability, separation of service, or termination of the ESOP. The debt of the ESOP is eliminated in consolidation. Contributions to the ESOP shall be sufficient to pay principal and interest currently due under the loan agreement. As shares are committed to be released from collateral, the Company reports the compensation expense equal to the average market price of the shares for the respective period, and the shares become outstanding for earnings per share computations. Dividends on unallocated ESOP shares, if any, are recorded as a reduction of debt and accrued interest. ESOP compensation was $ 56 and $ 166 for the three and nine months ended September 30, 2025 and $ 46 and $ 139 for the three and nine months ended September 30, 2024. 27 Table of Contents Texas Community Bancshares, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Three and Nine months ended September 30, 2025 and 2024 (Amounts in thousands, except share, per share data, and percentages) A summary of the ESOP shares as of September 30, 2025 and December 31, 2024 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ ​ December 31, 2024 Shares allocated to participants ​ 56,768 ​ ​ 56,768 Shares committed to be released to participants ​ ​ 10,358 ​ ​ ​ — Shares distributed to terminated participants ​ ( 12,342 ) ​ ​ ( 5,151 ) Unreleased shares ​ 193,495 ​ ​ 203,853 Total ​ 248,279 ​ ​ 255,470 Fair value of unreleased shares ​ $ 3,129 ​ ​ $ 3,109 ​ ​ ​ ​ ​ 28 Table of Contents