TCBX

TCBX is a Texas-only commercial bank that has compounded net income from $11.4M (FY2021) to $66.3M (FY2025), a near-flawless five-year climb ($18.7M → $33.4M → $47.7M → $66.3M) with FY2025 up 39.1% YoY. Diluted EPS grew 36.3% to $3.79 on essentially flat share count (13.9M, +0.9%), so the growth is real per-share earnings power, not dilution-fueled. Operating cash flow rose 44.7% to $50.8M, confirming the accounting income is cash-backed. At $40 the stock trades at just 10.6x trailing EPS and ~1.05x book (equity $531M / 13.9M shares ≈ $38.2/share), which is undemanding for a franchise still growing earnings in the mid-30s percent. On a growth-adjusted basis the PEG is roughly 0.3 — the market is pricing decelerating, low-quality earnings, and the filing gives little reason to assume either.

The balance sheet is expanding sensibly: total assets +8.1% to $5.34B while equity grew faster (+15.3%) via retained earnings (+50.6% to $183M), meaning the bank is building capital internally rather than levering up — liabilities grew only 7.3%. The 9.06x liabilities/equity ratio is normal for a bank holding company, and 12.5% ROE is respectable, if not elite. The 10-K is clean: disclosure controls and ICFR assessed effective, no change in ICFR, no material legal proceedings, and a credentialed CISO (20+ years, prior Deputy CISO at a major financial institution) reporting to the CEO under a board Risk Committee — governance signals that de-risk the 'small fast-grower cutting corners' worry.