Texas Community Bancshares, Inc. reported net income of $643,000 for the first quarter ended March 31, 2025, a significant improvement from a net loss of $2.7 million in the same period of 2024. This resulted in income per basic and diluted share of $0.22 for the quarter.
Net interest income increased by $365,000, or 12.3%, reaching $3.3 million for Q1 2025, up from $3.0 million in Q1 2024. The net interest margin expanded by 45 basis points to 3.24%, primarily due to the balance sheet restructuring completed in 2024, which involved reinvesting proceeds from a residential loan sale into higher-yielding commercial loans.
Average loan yields increased by 61 basis points to 5.88% for the quarter, reflecting the strategic shift in the loan portfolio. Interest expense decreased by $149,000, or 6.1%, largely due to a $26.9 million reduction in Federal Home Loan Bank advances. Noninterest expense also saw a reduction of $143,000, or 4.7%, to $2.9 million, partly due to lower occupancy and technology costs.
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