Texas Community Bancshares, Inc. (TCBS) | Investment Case

1. Company Snapshot

1.a. Company Description

Texas Community Bancshares, Inc.operates as the bank holding company for Mineola Community Bank, S.S.B. that provides loans and banking services to consumers and commercial customers in Mineola, Texas and the surrounding area, and the Dallas Fort Worth Metroplex.It generates a selection of deposit accounts, including savings accounts, checking accounts, certificates of deposit, and individual retirement accounts.

The company also originates primarily one- to four-family residential mortgage loans, commercial real estate loans, and construction and land loans; and car, boat, share, unsecured loans, etc., as well as agricultural loans, commercial loans, and consumer and other loans.In addition, it invests in securities; and offers sweep account, safe deposit boxes, cards, online banking, and mobile banking services.The company was founded in 1934 and is headquartered in Mineola, Texas.

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1.b. Last Insights on TCBS

Texas Community Bancshares, Inc.'s recent performance was driven by a significant 95% year-over-year jump in Q2 net income, reaching $678,000. The company's improving trend in net income, as noted by its President and CEO, is a positive indicator. Additionally, the declaration of a quarterly cash dividend of $0.04 per share of common stock demonstrates the company's commitment to returning value to shareholders. The substantial increase in net income for the six months ended June 30, 2025, to $1.3 million from a net loss of $2.3 million in the prior year period, further underscores the company's positive momentum.

1.c. Company Highlights

Last Price	16.85
Change Percentage	3.76%
Open	16.57
Previous Close	16.24
Market Cap ( Millions)	49
Volume	159
Year High	19.4
Year Low	14.9
M A 50	16.02
M A 200	16.02

FCF Yield	0.50%
Dividend Yield	1.19%
ROE	4.47%
Debt / Equity	93.13%
Net Debt / EBIDTA	1376.79%
Price To Book	0.9
Price Earnings Ratio	20.26
Price To FCF	200.46
Price To sales	2.03
EV / EBITDA	29.03

2. Transcript Summary

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3. NewsRoom

Texas Community Bancshares, Inc. Increases Quarterly Cash Dividend and Announces Special Cash Dividend

Nov -18

Source: prnewswire.com

Texas Community Bancshares, Inc. Announces Chief Financial Officer Transition

Nov -13

Source: prnewswire.com

Texas Community Bancshares, Inc. Announces Quarterly Cash Dividend

Aug -26

Source: prnewswire.com

Texas Community Q2 Net Jumps 95%

Aug -05

Source: fool.com

TEXAS COMMUNITY BANCSHARES, INC. REPORTS UNAUDITED FINANCIAL RESULTS FOR THE SECOND QUARTER ENDED JUNE 30, 2025

Aug -01

Source: prnewswire.com

Texas Community Bancshares, Inc. Announces Quarterly Cash Dividend

May -20

Source: prnewswire.com

TEXAS COMMUNITY BANCSHARES, INC. REPORTS UNAUDITED FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2025

May -01

Source: prnewswire.com

Texas Community Bancshares, Inc. Authorizes New Stock Repurchase Program

Feb -27

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Banking and Related Activities

Expected Growth: 4.5%

Strong economic growth in Texas, increasing demand for digital banking services, and strategic expansion into underserved markets drive growth for Texas Community Bancshares, Inc.

7. Detailed Products

Personal Banking

Texas Community Bancshares, Inc. offers a range of personal banking services, including checking and savings accounts, credit cards, loans, and investment products.

Business Banking

The company provides business banking services, including commercial loans, cash management, and treasury management solutions, to help businesses grow and succeed.

Mortgage Lending

Texas Community Bancshares, Inc. offers a variety of mortgage loan options, including fixed-rate and adjustable-rate mortgages, to help individuals and families achieve homeownership.

Wealth Management

The company provides wealth management services, including investment advice, portfolio management, and retirement planning, to help individuals and families achieve their long-term financial goals.

Online Banking

Texas Community Bancshares, Inc. offers online banking services, including bill pay, fund transfers, and account management, to provide customers with convenient access to their accounts.

Mobile Banking

The company provides mobile banking services, including mobile deposit, bill pay, and account management, to provide customers with on-the-go access to their accounts.

8. Texas Community Bancshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Texas Community Bancshares, Inc. is medium due to the presence of alternative financial institutions and online banking services.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of concentration of customers and the presence of multiple banking options.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers of financial services and technology.

Threat Of New Entrants

The threat of new entrants is high due to the low barriers to entry in the banking industry and the presence of fintech companies.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple banks and financial institutions competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	63.33%
Debt Cost	3.95%
Equity Weight	36.67%
Equity Cost	3.91%
WACC	3.93%
Leverage	172.71%

11. Quality Control: Texas Community Bancshares, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

USCB Financial Holdings

A-Score: 5.9/10

Value: 6.3

Growth: 5.6

Quality: 7.0

Yield: 2.0

Momentum: 8.0

Volatility: 6.7

1-Year Total Return ->

PB Bankshares

A-Score: 5.6/10

Value: 4.6

Growth: 7.7

Quality: 5.5

Yield: 0.0

Momentum: 9.0

Volatility: 6.7

1-Year Total Return ->

Riverview Bancorp

A-Score: 5.5/10

Value: 5.9

Growth: 3.6

Quality: 3.8

Yield: 5.0

Momentum: 7.5

Volatility: 7.3

1-Year Total Return ->

Texas Community Bancshares

A-Score: 5.2/10

Value: 3.7

Growth: 4.6

Quality: 4.5

Yield: 1.0

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

Amerant Bancorp

A-Score: 4.7/10

Value: 6.9

Growth: 4.3

Quality: 4.4

Yield: 3.0

Momentum: 4.0

Volatility: 5.7

1-Year Total Return ->

Glen Burnie

A-Score: 3.1/10

Value: 5.2

Growth: 1.6

Quality: 3.6

Yield: 4.0

Momentum: 1.5

Volatility: 3.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

9.93%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

3.93%

Texas Community Bancshares, Inc. - US88231Q1085

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on TCBS

1.c. Company Highlights

Lower Quality

Cheaper

Stable Momentum

Lower Yield

Higher Growth

Weak Momentum

Less Volatile

Strong Momentum

Average Quality

Expensive

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Banking and Related Activities

Expected Growth: 4.5%

7. Detailed Products

Personal Banking

Business Banking

Mortgage Lending

Wealth Management

Online Banking

Mobile Banking

8. Texas Community Bancshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Texas Community Bancshares, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.85$

Current Price

16.85$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA