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TXN Bank

Hondo, TX · Cert 15345 · TXN Bancshares Inc.

State charter, Fed member · FED · 7 branches

Q2 2026

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2
Part 2Peer Comparison, banks under $1B in assets in TX3

Basis

Quarter: Q2 2026, the quarter ended June 30, 2026, on both parts.

Income statement: year to date as filed, annualized, on both parts.

Balance sheet: as filed at quarter end.

Peer group

Banks under $1B in assets in TX (n=208 to 211). Each measure ranks only the institutions that reported it, so n varies by measure.

Peer groups below the disclosure floor are suppressed.

Peer standing

Capital

6

Q2 2024Q2 2026peer median (50)

Asset Quality

28

Q2 2024Q2 2026peer median (50)

Profitability

37

Q2 2024Q2 2026peer median (50)

Liquidity

67

Q2 2024Q2 2026peer median

Efficiency

33

Q2 2024Q2 2026peer median (50)

Growth

No peer data yet

Capital, Asset Quality, Profitability, Efficiency: higher is always a stronger peer standing (▲ better, ▼ worse). Liquidity, Growth: the score reflects closeness to the peer median -- 100 is sitting exactly at the median, falling the same way whether the bank runs above or below it.

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas.

CallReports · callreports.ai · Board PackageGenerated 2026-10-11

TXN Bank

Hondo, TX · Cert 15345 · TXN Bancshares Inc.

State charter, Fed member · FED · 7 branches

Q2 2026

$669.2MAssets
$335.2MLoans
$613.0MDeposits
$51.2MEquity
Loan mix
86%RE $263.7M12%C&I $35.5M2%Consumer $6.5MQ2 2025Q2 2026
Deposit mix
74%Interest-bearing $452.3M26%Noninterest $160.7MQ2 2025Q2 2026

NIM

4.19%Q2 ’244.32%Q2 ’254.36%Q2 ’26+28%+11%

Non-interest income vs. expense

2.26%Q2 ’242.52%Q2 ’252.58%Q2 ’26+13%-4%

Market Position · San Antonio-New Braunfels, TX · 2026 SOD (annual) · 0.3% share · #18 of 66 inst. · $0.5B of $175.0B

38.1% Medina
7.1% Uvalde
12.1% Bandera
5.2% Atascosa

Executive Summary

  • Earnings: ROA of 0.99%, up 68 bps year over year; NIM at 2.97%.
  • Asset quality: problem loans at 0.98% of loans (-12 bps YoY), with net charge-offs at 0.06%.
  • Capital: tier 1 leverage ratio of 9.68%, up 4 bps from a year ago.
  • Funding: loans stand at 54.69% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

0.99%+68 bps YoY

Net Interest Margin (YTD, annualized)

2.97%+28 bps YoY

Efficiency Ratio (YTD, annualized)

69.04%-701 bps YoY

Tier 1 Leverage Ratio

9.68%+4 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets0.31%0.61%0.66%0.95%0.99%+68 bps
Return on Equity4.95%9.22%9.72%12.38%12.99%+804 bps
Net Interest Margin2.69%2.74%2.79%3.01%2.97%+28 bps
Efficiency Ratio76.05%73.42%75.26%69.82%69.04%-701 bps
Non-Interest Burden1.91%1.85%1.95%1.90%1.83%-8 bps
Growth
Asset Growth (YoY)-3.56%-2.67%6.28%6.57%5.93%+949 bps
Loan Growth (YoY)10.26%11.46%9.68%6.09%1.06%-920 bps
Deposit Growth (YoY)5.32%6.75%6.24%5.45%4.53%-79 bps
Asset Quality
Nonperforming Loans / Loans1.10%1.23%1.15%1.09%0.98%-12 bps
Net Charge-Offs / Loans0.16%0.15%0.16%0.06%0.06%-10 bps
Allowance / Loans1.42%1.24%1.31%1.32%1.32%-10 bps
Allowance Coverage of NPLs1.3x1.0x1.1x1.2x1.3x+0.1x
Capital
Tier 1 Leverage Ratio9.64%9.68%9.68%9.81%9.68%+4 bps
Total Risk-Based Capital16.55%16.35%16.89%17.28%9.68%-687 bps
Equity / Assets6.65%7.51%7.72%7.58%7.66%+101 bps
Liquidity & Funding
Loans / Deposits56.57%59.17%57.77%55.78%54.69%-188 bps
Liquid Assets / Assets4.31%3.25%6.34%8.82%8.12%+380 bps
CRE / Total Capitaln/a250%239%232%n/an/a

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas. Income-statement figures are year-to-date as filed, annualized (the UBPR convention). Each quarter includes the ones before it.

CallReports · callreports.ai· Performance TrendsGenerated 2026-10-11

TXN Bank

Hondo, TX · Cert 15345 · Peer group: banks under $1B in assets in TX (n=208-211) · TXN Bancshares Inc.

State charter, Fed member · FED · 7 branches

Q2 2026

$669.2MAssets
$335.2MLoans
$613.0MDeposits
$51.2MEquity

Executive Summary

  • Strongest standing: return on equity outperforms 61% of banks under $1B in assets in TX (rank 83 of 211).
  • Widest gap: total risk-based capital ratio trails 95% of banks under $1B in assets in TX (rank 201 of 211).
  • Overall: at or above the peer median on 1 of 9 directional measures.

Return on Assets

0.98%

Rank 140 of 211

Net Interest Margin

2.97%

Rank 176 of 211

Efficiency Ratio

69.30%

Rank 142 of 211

Equity / Assets

7.66%

Rank 194 of 211

Non-interest income vs. expense

$5.1M$17.7MINCOMEEXPENSE
Unfavorable gap of $12.6M · efficiency ratio beats 33% of banks under $1B in assets in TX
Bank 69.30%Peer median 64.2%Q3 2024Q2 2026Shaded: peer 25th to 75th percentile
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRankPeer Position
Earnings
Return on Assets0.98%0.87%1.20%1.65%Beats 34%140 / 211
Return on Equity12.80%7.52%11.67%14.58%Beats 61%83 / 211
Net Interest Margin2.97%3.28%3.82%4.31%Beats 17%176 / 211
Efficiency Ratio69.30%53.01%64.18%73.65%Beats 33%142 / 211
Asset Quality
Nonperforming Loans / Loans0.98%0.01%0.30%1.10%Beats 28%150 / 208
Net Charge-Offs / Loans0.05%0.00%0.01%0.06%Beats 28%150 / 208
Capital
Tier 1 Capital Ratio9.68%11.72%14.45%19.57%Beats 5%200 / 211
Total Risk-Based Capital Ratio9.68%11.94%14.78%20.30%Beats 5%201 / 211
Equity / Assets7.66%9.41%11.06%12.94%Beats 8%194 / 211
Liquidity & Funding
Loans / Deposits54.69%45.39%66.56%82.03%31st pctl143 / 208
Loans / Assets50.10%39.13%56.90%70.46%36th pctl136 / 211
Brokered Deposits / Depositsn/aNot reported for this institution