What changed in this filing

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Item 1. Financial Statements

2026-08-11 compared with 2026-05-07 · 166 added, 124 removed, 643 unchanged (31% of the section changed)

3 unchanged sentences

Consolidated Statements of Financial Condition

March 31, 2026 and December 31, 2025

June 30, 2026 and December 31, 2025

(Amounts in thousands, except share and per share data)

4 unchanged sentences

Securities available for sale

Securities held to maturity, net of allowance for credit losses of $ 0 (fair values of $ 15,859 at March 31, 2026 and $ 16,744 at December 31, 2025)

Loans receivable, net of allowance for credit losses of $ 3,437 at March 31, 2026 and $ 3,440 at December 31, 2025

Securities held to maturity, net of allowance for credit losses of $ 0 (fair values of $ 15,122 at June 30, 2026 and $ 16,744 at December 31, 2025)

Loans receivable, net of allowance for credit losses of $ 3,576 at June 30, 2026 and $ 3,440 at December 31, 2025

Net investment in direct financing leases

14 unchanged sentences

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, 3,364,633 issued and 2,885,392 outstanding at March 31, 2026 and 3,366,516 issued and 2,887,275 outstanding at December 31, 2025

Common stock, $ 0.01 par value, 19,000,000 shares authorized, 3,365,468 issued and 2,872,727 outstanding at June 30, 2026 and 3,366,516 issued and 2,887,275 outstanding at December 31, 2025

Additional paid in capital

2 unchanged sentences

Unearned Employee Stock Ownership Program (ESOP) shares, at cost

Treasury stock, at cost ( 479,241 shares at March 31, 2026 and December 31, 2025)

Treasury stock, at cost ( 492,741 shares at June 30, 2026 and 479,241 shares at December 31, 2025)

Total shareholders' equity

3 unchanged sentences

Consolidated Statements of Operations (Unaudited)

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(Amounts in thousands, except share and per share data)

Three Months Ended

Six Months Ended

Interest Income

10 unchanged sentences

Net Interest Income

Provision for Credit Losses - loans

Provision for Credit Losses - off-balance sheet credit exposures

Provision for Credit Losses

Net Interest Income After Provision for Credit Losses

Provision (Credit) for Credit Losses - loans

Provision (Credit) for Credit Losses - off-balance sheet credit exposures

Provision (Credit) for Credit Losses

Net Interest Income After Provision (Credit) for Credit Losses

Noninterest Income

4 unchanged sentences

Net appreciation on bank-owned life insurance

Gain on other investment

Total noninterest income

18 unchanged sentences

Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(Amounts in thousands, except share and per share data)

Three Months Ended

Six Months Ended

Other items of comprehensive income (loss)

2 unchanged sentences

Net changes in fair value of available for sale securities hedged, before tax

Total other items of comprehensive (loss) income, before tax

Total other items of comprehensive income (loss), before tax

Income tax (expense) benefit related to other items of comprehensive (loss) income

Total other items of comprehensive (loss) income, after tax

Total other items of comprehensive income (loss), after tax

Comprehensive Income

3 unchanged sentences

Consolidated Statements of Shareholders’ Equity (Unaudited)

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(Amounts in thousands, except share and per share data)

1 unchanged sentence

Shareholders'

Three Months Ended June 30, 2026 and 2025

Income (Loss)

Balance at April 1, 2026

Stock based compensation expense

Other comprehensive income, net of tax

Cash dividends declared ($ 0.06 per share)

ESOP shares committed to be released, 3,351 shares

Treasury stock purchased, 13,500 shares

Balance at June 30, 2026

Balance at April 1, 2025

Stock based compensation expense

Other comprehensive income, net of tax

Cash dividends declared ($ 0.04 per share)

ESOP shares committed to be released, 3,628 shares

Treasury stock purchased, 53,000 shares

Balance at June 30, 2025

Comprehensive

Shareholders'

Six Months Ended June 30, 2026 and 2025

Income (Loss)

Balance at January 1, 2026

1 unchanged sentence

Other comprehensive loss, net of tax

Cash dividend declared ($ 0.05 per share)

Cash dividends declared ($ 0.11 per share)

ESOP shares committed to be released, 6,700 shares

Balance at March 31, 2026

Treasury stock purchased, 13,500 shares

Balance at June 30, 2026

Balance at January 1, 2025

1 unchanged sentence

Other comprehensive income, net of tax

Cash dividend declared ($ 0.04 per share)

Cash dividends declared ($ 0.08 per share)

ESOP shares committed to be released, 6,905 shares

Treasury stock purchased, 84,500 shares

Balance at March 31, 2025

Balance at June 30, 2025

See Notes to Consolidated Financial Statements

2 unchanged sentences

Consolidated Statements of Cash Flows (Unaudited)

Three Months Ended March 31, 2026 and 2025

Six Months Ended June 30, 2026 and 2025

(Amounts in thousands, except share and per share data)

Three Months Ended

Six Months Ended

Operating Activities

1 unchanged sentence

Provision for credit losses - loans

Provision for credit losses - off-balance sheet credit exposures

(Credit) Provision for credit losses - off-balance sheet credit exposures

Net amortization (accretion) of securities

2 unchanged sentences

Stock dividends on restricted investments

Net increase on other investment

Appreciation on bank-owned life insurance

24 unchanged sentences

Net increase in deposits

Advances from FHLB and other borrowings

Payments on FHLB and other borrowings

1 unchanged sentence

Purchases of treasury stock

Net Cash (used for) from Financing Activities

Net Cash from Financing Activities

Net Change in Cash and Cash Equivalents

5 unchanged sentences

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(Amounts in thousands, except share, per share data, and percentages)

9 unchanged sentences

Interim Financial Statements

The interim unaudited consolidated financial statements as of March 31, 2026, and for the three months ended March 31, 2026 and 2025, 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.

The interim unaudited consolidated financial statements as of June 30, 2026, and for the three and six months ended June 30, 2026 and 2025, 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 months ended March 31, 2026 are not necessarily indicative of the results to be achieved for the year ending December 31, 2026, or any other period.

The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of the results to be achieved for the year ending December 31, 2026, or any other period.

Certain prior period data presented in the consolidated financial statements has been revised to conform with the current period presentation.

11 unchanged sentences

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(Amounts in thousands, except share, per share data, and percentages)

4 unchanged sentences

Three months ended

Six Months Ended

Weighted average shares outstanding for basic earnings per share:

6 unchanged sentences

Dilutive earnings per share

There were no antidilutive restricted awards for the three months ended March 31, 2026.

Nonvested restricted stock awards for 21,493 shares of common stock were not considered in computing diluted earnings per share for the three months ended March 31, 2025, because they were antidilutive.

There were no antidilutive stock options for the three months ended March 31, 2026.

Stock options for 35,838 shares of common stock have vested, however, were not considered in computing diluted earnings per share for the three months ended March 31, 2025, because they were antidilutive.

There were no antidilutive restricted awards for the three and six months ended June 30, 2026.

Nonvested restricted stock awards for 21,493 shares of common stock were not considered in computing diluted earnings per share for the three and six months ended June 30, 2025, because they were antidilutive.

There were no antidilutive stock options for the three and six months ended June 30, 2026.

Stock options for 35,838 shares of common stock have vested, however, were not considered in computing diluted earnings per share for the three and six months ended June 30, 2025, because they were antidilutive.

Texas Community Bancshares, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(Amounts in thousands, except share, per share data, and percentages)

1 unchanged sentence

The amortized cost and fair value of securities, with gross unrealized gains and losses, follows:

March 31, 2026

June 30, 2026

Available for Sale

25 unchanged sentences

Total securities held to maturity

During the three months ended March 31, 2026 and 2025, the Company had no sales of available for sale securities or held to maturity securities.

At March 31, 2026 and December 31, 2025, securities with a fair value of $ 14,872 and $ 14,815 , respectively, were pledged to secure public deposits and for other purposes required or permitted by law.

During the three and six months ended June 30, 2026 and 2025, the Company had no sales of available for sale securities or held to maturity securities.

At June 30, 2026 and December 31, 2025, securities with a fair value of $ 14,317 and $ 14,815 , respectively, were pledged to secure public deposits and for other purposes required or permitted by law.

Texas Community Bancshares, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(Amounts in thousands, except share, per share data, and percentages)

The amortized cost and fair value of debt securities by contractual maturity at March 31, 2026, follows:

The amortized cost and fair value of debt securities by contractual maturity at June 30, 2026, follows:

Available for Sale

7 unchanged sentences

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:

March 31, 2026

June 30, 2026

Less than 12 months

13 unchanged sentences

Corporate bonds (4, 13)

At March 31, 2026 and December 31, 2025, the Company had investment securities with approximately $ 5,825 and $ 5,431 , respectively, in unrealized losses, which have been in continuous loss positions for more than twelve months.

At June 30, 2026 and December 31, 2025, the Company had investment securities with approximately $ 5,518 and $ 5,431 , 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.

4 unchanged sentences

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(Amounts in thousands, except share, per share data, and percentages)

1 unchanged sentence

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 March 31, 2026 and December 31, 2025:

March 31, 2026

June 30, 2026

mortgage-backed

3 unchanged sentences

U.S Government

As of March 31, 2026 and December 31, 2025, there were no securities held to maturity on nonaccrual status or past due status.

As of June 30, 2026 and December 31, 2025, there were no securities held to maturity on nonaccrual status or past due status.

Mortgage-backed Securities and Collateralized Mortgage Obligations

1 unchanged sentence

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 March 31, 2026 or December 31, 2025.

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 June 30, 2026 or December 31, 2025.

Government and Agency Securities

3 unchanged sentences

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 March 31, 2026 and December 31, 2025.

Therefore, an allowance for credit losses is deemed unnecessary at June 30, 2026 and December 31, 2025.

Texas Community Bancshares, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(Amounts in thousands, except share, per share data, and percentages)

3 unchanged sentences

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 March 31, 2026 and December 31, 2025.

Therefore, an allowance for credit losses is deemed unnecessary at June 30, 2026 and December 31, 2025.

Note 4 - Loans and Allowance for Credit Losses

8 unchanged sentences

Loans and leases, net

Direct financing leases of $ 1,038 and $ 1,219 are included in consumer and other loans at March 31, 2026 and December 31, 2025, respectively.

The following tables set forth information regarding the activity in the allowance for credit losses for the three months ended March 31, 2026 and March 31, 2025:

March 31, 2026

Direct financing leases of $ 998 and $ 1,219 are included in consumer and other loans at June 30, 2026 and December 31, 2025, respectively.

Texas Community Bancshares, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Three and Six Months Ended June 30, 2026 and 2025

(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 six months ended June 30, 2026 and June 30, 2025:

June 30, 2026

Allowance for credit losses:

2 unchanged sentences

Municipalities

Three months ended

Beginning balance, April 1, 2026

Provision (credit) for credit losses

Loans charged-off

Balance, June 30, 2026

Six months ended

Balance, January 1, 2026

1 unchanged sentence

Loans charged-off

Balance, March 31, 2026

Texas Community Bancshares, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026 and 2025

(Amounts in thousands, except share, per share data, and percentages)

March 31, 2025

Balance, June 30, 2026

June 30, 2025

Allowance for credit losses:

2 unchanged sentences

Municipalities

Three months ended

Beginning balance, April 1, 2025

Provision for credit losses

Loans charged-off

Balance, June 30, 2025

Six months ended

Balance, January 1, 2025

1 unchanged sentence

Loans charged-off

Balance, March 31, 2025

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 March 31, 2026 and December 31, 2025:

March 31, 2026

Balance, June 30, 2025

The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 90 days and still accruing interest as of June 30, 2026 and December 31, 2025:

June 30, 2026

with Allowance

5 unchanged sentences

Consumer and other

Texas Community Bancshares, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Three and Six Months Ended June 30, 2026 and 2025

(Amounts in thousands, except share, per share data, and percentages)

December 31, 2025

6 unchanged sentences

Consumer and other

The Company did no t recognize any interest income on nonaccrual loans during the three months ended March 31, 2026 or March 31, 2025.

Texas Community Bancshares, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026 and 2025

(Amounts in thousands, except share, per share data, and percentages)

The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of March 31, 2026 and December 31, 2025:

March 31, 2026

The Company did no t recognize any interest income on nonaccrual loans during the three and six months ended June 30, 2026 or June 30, 2025.

The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of June 30, 2026 and December 31, 2025:

June 30, 2026

1-4 Residential & multi-family

5 unchanged sentences

Consumer and other

The Company had $ 2,068 and $ 2,135 in collateral-dependent loans at March 31, 2026 and December 31, 2025, respectively.

Texas Community Bancshares, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Three and Six Months Ended June 30, 2026 and 2025

(Amounts in thousands, except share, per share data, and percentages)

The Company had $ 1,408 and $ 2,135 in collateral-dependent loans at June 30, 2026 and December 31, 2025, 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.

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.

2 unchanged sentences

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

Texas Community Bancshares, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026 and 2025

(Amounts in thousands, except share, per share data, and percentages)

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.

14 unchanged sentences

Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed.

Texas Community Bancshares, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Three and Six Months Ended June 30, 2026 and 2025

(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.

3 unchanged sentences

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.

1 unchanged sentence

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 three months ended March 31, 2026.

No significant changes in methodology were made during the six months ended June 30, 2026.

Texas Community Bancshares, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(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 March 31, 2026 and December 31, 2025 are as follows:

March 31, 2026

Based on the most recent analysis performed, the risk category of loans by class of loans and gross chargeoffs as of June 30, 2026 and December 31, 2025 are as follows:

June 30, 2026

Term Loans Amortized Cost Basis by Origination Year

8 unchanged sentences

Special mention

Current period gross charge-offs

Municipalities

6 unchanged sentences

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(Amounts in thousands, except share, per share data, and percentages)

21 unchanged sentences

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(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 March 31, 2026 and December 31, 2025:

March 31, 2026

The Company also evaluates credit quality based on the aging status of the loans.

The following is an aging analysis for loans as of June 30, 2026 and December 31, 2025:

June 30, 2026

Construction and land

12 unchanged sentences

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 months ended March 31, 2026 and 2025.

During the three months ended March 31, 2026 and 2025, there was no interest income recognized on collateral-dependent loans.

During the three months ended March 31, 2026 and 2025, there were no modifications of loans to borrowers in financial difficulty.

There have been no modifications to borrowers with financial difficulty in the three months ended March 31, 2026 and 2025, 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.

No interest income was recognized for loans on nonaccrual status for the three and six months ended June 30, 2026 and 2025.

During the three and six months ended June 30, 2026 and 2025, there was no interest income recognized on collateral-dependent loans.

During the three and six months ended June 30, 2026 and 2025, there were no modifications of loans to borrowers in financial difficulty.

There were no modifications to borrowers with financial difficulty in the three and six months ended June 30, 2026 and 2025, that subsequently defaulted.

The Company had no commitments to loan additional funds to borrowers whose loans have been modified but may on occasion extend financing to these borrowers.

Texas Community Bancshares, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(Amounts in thousands, except share, per share data, and percentages)

5 unchanged sentences

The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments.

At March 31, 2026 and December 31, 2025, the following financial instruments were outstanding whose contract amounts represent credit risk:

At June 30, 2026 and December 31, 2025, the following financial instruments were outstanding whose contract amounts represent credit risk:

Contract Amount

March 31, 2026

June 30, 2026

December 31, 2025

10 unchanged sentences

One line renews annually and the other line is in effect until either party changes the terms of the agreement.

At March 31, 2026, the Company had no commitments to purchase securities.

At June 30, 2026, 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.

2 unchanged sentences

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(Amounts in thousands, except share, per share data, and percentages)

1 unchanged sentence

Supplemental disclosure of cash flow information is as follows:

Three Months Ended

Six Months Ended

Supplemental cash flow information:

6 unchanged sentences

Loans transferred to other real estate owned

Lease liabilities arising from obtaining right-of-use assets

Note 7 - Minimum Regulatory Capital Requirements

4 unchanged sentences

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 March 31, 2026 and December 31, 2025, the Bank’s CBLR ratio was 11.97 % and 11.74 %, respectively, which exceeded all regulatory capital requirements under the CBLR framework, and the Bank was considered to be “well-capitalized.”

At June 30, 2026 and December 31, 2025, the Bank’s CBLR ratio was 12.13 % and 11.74 %, 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.

8 unchanged sentences

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(Amounts in thousands, except share, per share data, and percentages)

20 unchanged sentences

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 months ended March 31, 2026 or the year ended December 31, 2025.

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,

There were no changes in valuation techniques during either the three and six months ended June 30, 2026 or the year ended December 31, 2025.

Texas Community Bancshares, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(Amounts in thousands, except share, per share data, and percentages)

observable market- based parameters.

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.

14 unchanged sentences

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(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 March 31, 2026 and December 31, 2025, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

March 31, 2026

The following table summarizes financial assets measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

June 30, 2026

Financial assets

18 unchanged sentences

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(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 March 31, 2026 and December 31, 2025, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

March 31, 2026

The following table summarizes financial and non-financial assets measured at fair value on a nonrecurring basis as of June 30, 2026 and December 31, 2025, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

June 30, 2026

Financial assets

5 unchanged sentences

Other real estate owned

During the three months ended March 31, 2026 and 2025, 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.

During the three and six months ended June 30, 2026 and 2025, 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 March 31, 2026, collateral-dependent loans with a carrying value of $ 885 were reduced by specific valuation allowance allocations totaling $ 279 to a reported fair value of $ 606 .

At June 30, 2026, collateral-dependent loans with a carrying value of $ 252 were reduced by specific valuation allowance allocations totaling $ 235 to a reported fair value of $ 17 .

At December 31, 2025, collateral dependent loans with a carrying value of $ 933 were reduced by specific valuation allowance allocations totaling $ 279 to a reported fair value of $ 654 .

At March 31, 2026, the Company had other real estate owned consisting of 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.

At June 30, 2026, the Company had other real estate owned consisting of 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.

7 unchanged sentences

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(Amounts in thousands, except share, per share data, and percentages)

3 unchanged sentences

Significant Input

March 31, 2026

June 30, 2026

Collateral-dependent loans

18 unchanged sentences

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(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:

March 31, 2026

June 30, 2026

Carrying Value

31 unchanged sentences

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(Amounts in thousands, except share, per share data, and percentages)

18 unchanged sentences

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.

1 unchanged sentence

Dividends on unallocated ESOP shares, if any, are recorded as a reduction of debt and accrued interest.

ESOP compensation was $ 56 and $ 52 for the three months ended March 31, 2026 and 2025, respectively.

ESOP compensation was $ 58 and $ 114 for the three and six months ended June 30, 2026 and $ 58 and $ 110 for the three and six months ended June 30, 2025.

Texas Community Bancshares, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(Amounts in thousands, except share, per share data, and percentages)

A summary of the ESOP shares as of March 31, 2026 and December 31, 2025 are as follows:

March 31, 2026

A summary of the ESOP shares as of June 30, 2026 and December 31, 2025 are as follows:

June 30, 2026

December 31, 2025

5 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements