TOUCHMARK BANCSHARES, INC. REPORTS FIRST QUARTER RESULTS

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May 12, 2025, 07:00 ET

ALPHARETTA, Ga., May 12, 2025 /PRNewswire/ -- Touchmark Bancshares, Inc. (OTC Pink: TMAK), the holding company for Touchmark National Bank, today reported financial results for the first quarter of 2025.

Key highlights of Touchmark Bancshares' results for the first quarter of 2025 include:

The company hired Bobby Krimmel to succeed Dr. J.J. Shah as the President and CEO of Touchmark National Bank;
One new SBA Banker was added; and
New company strategy to grow local market customer relationships has been established.

"Our first quarter results reflected the beginning of a transition period for Touchmark to grow its balance sheet with an emphasis on developing local banking relationships in our primary market," said Bobby Krimmel. "We have defined our primary market as 25 miles from our home office in Alpharetta and are actively pursuing local customer relationships with a healthy pipeline building for both loan and deposit opportunities."

"The reduction in net income during the first quarter of 2025 was driven by lower loan balances compared to the prior year. We hired two local bankers to help us grow our loan portfolio with one focused on SBA banking relationships and started during the first quarter of 2025 while the second banker was added in April 2025 with a focus on conventional lending opportunities. The company remains optimistic that our strategy to grow Touchmark with a relationship banking focus will deliver long-term, sustainable performance to our shareholders."

First Quarter 2025 Results of Operations

Net income decreased 48.4% to $733,000 from $1.4 million for the first quarter of 2024;
Net interest income fell by 14.4% to $2.9 million from $3.4 million for the first quarter of 2024;
Total loans declined by $16.3 million, or 4.3%, during the first quarter of 2025;
Efficiency increased to 59.22% compared to 52.42% from the first quarter of 2024;
Total noninterest expense decreased by 11.3% to $1.8 million from the first quarter of 2024; and
Book value per share increased to $16.14 from $16.06 from the first quarter of 2024.

Asset Quality

Nonperforming assets, net of government guarantees, remained at $7.6 million of total assets for the first quarter of 2025, down from $13.4 million from the first quarter of 2024;
Net charge-offs to average loans declined to 0.60% for the first quarter of 2025 compared to 4.74% for the fourth quarter of 2024; and
Allowance for credit losses represented 0.58% of total loans outstanding as of the first quarter of 2025.

About Touchmark Bancshares, Inc. and Touchmark National Bank

Touchmark Bancshares, Inc. is the holding company for Touchmark National Bank, a community bank founded in 2008 and headquartered in Alpharetta, Georgia, serving Cobb, Dekalb, Forsyth, Gwinnett, and North Fulton counties. As of March 31, 2025, Touchmark reported total assets of $432 million and total shareholders' equity of $72 million. For more information about Touchmark, visit us at www.touchmarknb.com under Investor Relations.

Cautionary Note Regarding Forward Looking Statements

This news release may contain certain "forward-looking statements" that represent Touchmark's expectations or beliefs concerning future events and often use words or phrases such as "opportunities," "prospects," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," "intends" or similar expressions. Such forward-looking statements contained herein represent the current expectations, plans or forecast of Touchmark and are about matters that are inherently subject to risks and uncertainties. These statements are not guarantees of future results or performance and readers are cautioned not to place undue reliance on them, whether included in this news release or made elsewhere from time to time by Touchmark or on its behalf. Touchmark disclaims any obligation to update such forward-looking statements.

TOUCHMARK BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS

		(unaudited)
		March 31,		December 31,
	(dollars in thousands, except per share data)	2025		2024⁽¹⁾
ASSETS	Cash and due from banks	$	725	$	1,184
	Interest-bearing deposits	40,866		41,408
	Federal funds sold	5,175		5,175
	Total cash and cash equivalents	46,766		47,767
	Securities:
	Available-for-sale	9,957		10,019
	Equity securities	1,598		1,654
	Loans, net of deferred fees	362,836		379,419
	Allowance for credit losses	(2,092)		(2,358)
	Net loans	360,744		377,061
	Bank premises and equipment, net	1,256		1,217
	Other Real Estate	6,888		6,888
	Deferred tax asset	1,079		1,112
	Other assets	4,133		4,573
	TOTAL ASSETS	$	432,421	$	450,291
LIABILITIES	Deposits:
	Noninterest-bearing	$	13,676	$	16,957
	Interest-bearing	340,423		352,590
	Total deposits	354,099		369,547
	Accounts payable and accrued liabilities	6,077		9,331
	TOTAL LIABILITIES	360,176		378,878
SHAREHOLDERS'	Common stock - $0.01 par value per share, 50,000,000 shares
EQUITY	authorized; 4,475,891 shares issued and outstanding as of
	the periods presented	45		45
	Additional paid-in capital	46,881		46,881
	Retained earnings	25,999		25,266
	Accumulated other comprehensive loss	(680)		(779)
	TOTAL SHAREHOLDERS' EQUITY	72,245		71,413

	TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	432,421	$	450,291

⁽¹⁾ Derived from audited financial statements as of December 31, 2024.

TOUCHMARK BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (unaudited)

		Three Months Ended March 31,
	(dollars in thousands, except per share data)	2025		2024
INTEREST AND	Interest and fees on loans	$	6,202	$	7,906
DIVIDEND	Income on investment securities
INCOME	Taxable interest	103		117
	Interest from federal funds sold and other	488		798
	Total interest income	6,793		8,821
INTEREST	Interest on deposits	3,855		5,389
EXPENSE	Interest on borrowings	-		-
	Total interest expense	3,855		5,389
	Net interest income	2,938		3,432
	Provision for credit losses	295		-
	Net interest income after provision	2,643		3,432
NONINTEREST
INCOME	Service fees on deposit accounts	3		4
	Loan servicing fees	110		124
	Other noninterest income	49		391
	Total noninterest income	162		519
NONINTEREST	Salaries and employee benefits	983		1,056
EXPENSE	Net occupancy expense	67		69
	Foreclosed Real Estate Expenses	53		242
	Data processing expense	94		85
	Referral Fees for Gov't Guaranteed Loans	28		0
	Loan Collection Expense	5		165
	Audits and exams expense	45		42
	Board Expenses	173		62
	Supervisory Assessments	93		146
	Other noninterest expense	295		204
	Total noninterest expense	1,836		2,071
	Income before provision for income taxes	969		1,880
	Provision for income taxes	236		460
	Net income available to common shareholders	$	733	$	1,420

	Weighted average shares outstanding - basic	4,475,891		4,475,891
	Weighted average shares outstanding - diluted	4,630,473		4,630,473
	Earnings per share	$	0.16	$	0.32
	Diluted earnings per share	$	0.16	$	0.31

TOUCHMARK BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)

	For the Three Months Ended
(dollars in thousands, except per share data)	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Results of Operations:
Interest income	$	6,793	$	7,301	$	7,873	$	7,832	$	8,821
Interest expense	3,855		4,285		4,697		4,979		5,389
Net interest income	2,938		3,016		3,176		2,853		3,432
Provision for credit losses	295		2,240		150		186		-
Non-interest income	162		4		884		1,189		519
Non-interest expense and non-controlling interest – preferred stock of subsidiary	1,836		1,256		1,908		2,392		2,071
Income before income taxes	969		(476)		2,002		1,464		1,880
Income taxes	236		(184)		491		363		460
Net income for common shareholders	$	733	$	(292)	$	1,511	$	1,101	$	1,420
Per Share Data:
Basic earnings per share	$	0.16	$	(0.07)	$	0.34	$	0.25	$	0.32
Diluted earnings per share	$	0.16	$	(0.07)	$	0.33	$	0.24	$	0.31
Book value per share	$	16.14	$	15.95	$	16.72	$	16.32	$	16.06
Weighted average shares outstanding per quarter - basic	4,475,891		4,475,891		4,475,891		4,475,891		4,475,891
Weighted average shares outstanding per quarter - diluted	4,630,473		4,630,473		4,630,473		4,630,473		4,630,473
Financial Condition Data and Ratios:
Loans, net of deferred fees	$	362,836	$	379,419	$	389,679	$	410,711	$	435,918
Allowance for credit losses	$	(2,092)	$	(2,358)	$	(4,673)	$	(4,858)	$	(4,647)
Total assets	$	432,421	$	450,291	$	464,973	$	480,229	$	504,926
Total deposits	$	354,099	$	369,547	$	382,641	$	398,841	$	424,339
Net interest margin	2.71 %		2.72 %		2.75 %		2.35 %		2.65 %
Efficiency	58.68 %		44.81 %		46.56 %		57.36 %		51.99 %

Asset Quality Data and Ratios:
Total nonperforming assets	$	23,042	$	23,039	$	27,735	$	30,089	$	29,971
Total nonperforming assets, net of government guarantees	7,553		7,552		11,059		13,450		13,423
Nonperforming assets to total assets	5.33 %		5.13 %		5.95 %		6.26 %		5.93 %
Nonperforming assets to total assets, net of government guarantees	1.75 %		1.68 %		2.37 %		2.80 %		2.65 %
Allowance for credit losses to total loans	0.58 %		0.62 %		1.20 %		1.18 %		1.07 %
Net charge-offs (recoveries) to average loans (annualized)	0.60 %		4.74 %		0.34 %		(0.01 %)		0.31 %