TCBSMEDIUM SIGNALFINANCIAL10-K

TCBS shows declining operational efficiency with meaningfully higher interest expenses and reduced operating cash flow generation.

The 25% increase in interest expense coupled with nearly 30% decline in operating cash flow indicates margin pressure in a rising rate environment. The bank's shift toward adjustable-rate commercial lending suggests management is adapting to interest rate volatility, though this transition period may continue pressuring near-term profitability.

Comparing 2026-03-25 vs 2025-03-27View on EDGAR →
FINANCIAL ANALYSIS

The bank experienced financial headwinds with interest expenses growing notably to $9.9M while operating cash flow declined to $1.4M, reflecting compressed net interest margins. Capital expenditures dropped substantially to $394K, suggesting reduced growth investment, though dividend payments increased modestly. The overall picture signals a community bank navigating interest rate challenges while maintaining shareholder distributions despite weakened cash generation.

FINANCIAL STATEMENT CHANGES
Capital Expenditure
Cash Flow
-67.2%
$1.2M→$394K

Capex reduced 67.2% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Operating Cash Flow
Cash Flow
-29.6%
$1.9M→$1.4M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Interest Expense
P&L
+25.1%
$7.9M→$9.9M

Interest costs rose 25.1% — monitor debt levels and coverage ratio in rising rate environment.

Dividends Paid
Cash Flow
+17.7%
$504K→$593K

Dividend payments increased 17.7% — management confidence in sustained cash generation.

LANGUAGE CHANGES
NEW — 2026-03-25
PRIOR — 2025-03-27
ADDED
As of March 25, 2026, 2,885,392 shares of the registrant s common stock were outstanding.
At December 31, 2025, the Company had total consolidated assets of $429,842,000, net loans and leases of $303,205,000, deposits of $327,904,000 and stockholders equity of $53,757,000.
Broadstreet Bank, SSB Broadstreet Bank, SSB is a Texas-chartered savings bank headquartered in Mineola, Texas.
The majority of Broadstreet Bank s loans are currently fixed-rate loans, however the Bank s pricing and terms for commercial loans have changed to adjustable rates or maximum fixed-rate of 5-years to diversify our loan portfolio and decrease risk associated with fluctuations in market rates.
Market Area We consider our primary market area, for originating loans and gathering deposits, the counties in which our main office and six branch offices are located, which include, Franklin County, Hopkins County, Smith County, Van Zandt County and Wood County, and contiguous areas.
As of June 30, 2025 (the most recent date for which data is available), our deposit market share in Smith County was 0.33% (19 th among 27 Federal Deposit Insurance Corporation-insured institutions with offices in the county), 8.52% in Van Zandt County (6 th among 8 Federal Deposit Insurance Corporation-insured institutions with offices in the county) and 19.78% in Wood County (3 rd among 7 Federal Deposit Insurance Corporation-insured institutions with offices in the county).
While the majority of the Company s loan portfolio is comprised of fixed rate loans, we have updated our commercial lending pricing and terms to adjustable rates or maximum fixed-rates of 5-years.
In addition to the loans disclosed in the table below, we had loans in process, with scheduled closings, of $15.6 million and $6.2 million at December 31, 2025 and December 31, 2024, respectively.
We had no loans held for sale at December 31, 2025 and December 31, 2024, respectively.
At December 31, 2025 2024 Amount Percent Amount Percent (Dollars in thousands) Real estate loans: 1-4 family residential $ 140,383 45.8 % $ 145,587 49.0 % Multi-family 10,943 3.6 10,481 3.5 Construction land 48,372 15.8 54,136 18.2 Commercial 61,526 20.1 56,068 18.9 Farmland 17,085 5.6 9,540 3.2 Agriculture loans 33 0.0 55 0.0 Commercial loans 8,813 2.8 6,315 2.1 Municipalities 14,890 4.8 9,253 3.1 Consumer and other 4,600 1.5 5,495 1.9 Total loans 306,645 100.0 % 296,930 100.0 % Less: Allowance for losses 3,440 3,222 Total loans and leases, net $ 303,205 $ 293,708 Contractual Maturities.
REMOVED
As of March 25, 2025, 3,061,652 shares of the registrant s common stock were outstanding.
At December 31, 2024, the Company had total consolidated assets of $443,457,000, net loans and leases of $293,708,000, deposits of $335,828,000 and stockholders equity of $52,108,000.
Broadstreet Bank, SSB Formerly named Mineola Community Bank, S.S.B., Broadstreet Bank, SSB is a Texas-chartered savings bank headquartered in Mineola, Texas.
On December 4, 2023, the name of the Bank changed from Mineola Community Bank to Broadstreet Bank to be more inclusive of all of the communities we serve.
Market Area We consider Franklin County, Hopkins County, Smith County, Van Zandt County and Wood County, and contiguous areas, as our primary market area for originating loans and gathering deposits.
Our main office and six branch offices are located in these counties including the Tyler, Texas branch in Smith County which opened in the first quarter of 2024.
As of June 30, 2024 (the most recent date for which data is available), our deposit market share in Smith County was 0.27% (19 th among 26 Federal Deposit Insurance Corporation-insured institutions with offices in the county), 8.90% in Van Zandt County (6 th among 8 Federal Deposit Insurance Corporation-insured institutions with offices in the county) and 19.94% in Wood County (3 rd among 7 Federal Deposit Insurance Corporation-insured institutions with offices in the county).
To a substantially lesser extent, we originate agricultural loans, commercial loans, loans to municipalities, and consumer and other loans.
While the majority of the Company s loan portfolio is comprised of fixed rate loans, we have updated our commercial lending terms and are originating more commercial loans with adjustable rates.
In addition to the loans disclosed in the table below, we had loans in process, with scheduled closings, of $6.2 million and $22.9 million at December 31, 2024 and December 31, 2023, respectively.
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