TOUCHMARK BANCSHARES, INC. REPORTS SECOND QUARTER RESULTS

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Aug 06, 2025, 08:39 ET

ALPHARETTA, Ga., Aug. 6, 2025 /PRNewswire/ -- Touchmark Bancshares, Inc. (OTC Pink: TMAK), the holding company for Touchmark National Bank, today reported financial results for the second quarter of 2025.

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

Reduced cost of deposits by 27 basis;
Unexpected loan payoffs impacted net income by $466,000;
One new Commercial Banker was added; and
Solid new customer balance growth.

"During the second quarter, we experienced pressure on earnings related to unexpected loan payoffs of more than $28 million and the acceleration of loan purchase premiums offset by loan prepayment revenue," said Bobby Krimmel, President and CEO of Touchmark National Bank. "The cost of deposits was reduced during the quarter by 27 basis points and core deposit growth was used to repay non-core deposits at higher interest rates. We anticipate new loan growth to continue building momentum throughout the year and the net loan growth pace to turn positive during the first quarter of 2026."

Krimmel continued, "A solid level of new customer balance growth within our primary service area was recorded during the quarter with loans totaling $4.4 million and deposits totaling $13.1 million. Additionally, our active loan pipeline improved to $11.3 million in new opportunities for the third quarter. During the second quarter, we hired two local bankers to help us grow our technology capabilities and to manage our compliance risk and anticipate adding additional revenue and credit administration support during the third quarter. Finally, we continue to make progress on the Formal Agreement with the OCC and are committed to addressing all regulatory concerns."

Second Quarter 2025 Results of Operations

Net income decreased 66% to $370,000 for the second quarter of 2025 compared to the same period for 2024 and decreased 50% from the sequential quarter driven by lower loan balances and $1.1 million in loan purchase premium write-offs offset in part by early loan prepayment revenue of $466,000 and lower deposit cost of $348,000;
Net interest income decreased 33% to $1.9 million for the second quarter of 2025 compared to the same period for 2024 and decreased by $1.0 million, or 35%, from the sequential quarter driven by $1.1 million in loan purchase premium write-offs during the second quarter of 2025 and lower loan interest income of $299,000 offset by reduced deposit cost of $348,000;
Non-interest income decreased 49% to $604,000 for the second quarter of 2025 compared to the same period for 2024 but increased by $442,000, or 273%, from the sequential quarter driven by $466,000 of early loan prepayment revenue during the second quarter of 2025; and
Non-interest expense decreased 22% to $1.9 million compared to the same period for 2024 but increased by $15,000 from the sequential quarter.

Balance Sheet and Capital

Total loans declined by $78 million, or 19%, to $332 million during the second quarter of 2025 compared to the same period in 2024 and decreased by $31 million, or 8%, from the sequential quarter driven by the unexpected loan payoffs from 12 loan relationships totaling $28.1 million, normal amortization of the loan portfolio of $6.9 million partially offset by new loan growth of $4.5 million;
Total deposits declined by $51 million, or 13%, to $348 million during the second quarter of 2025 compared to the same period in 2024 and decreased by $6 million, or 2%, from the sequential quarter driven by a reduction in non-core deposits of $7.0 million and lower retail time deposits of $12.0 million offset by growth in checking and money market balances of $13.9 million. New customer balance growth during the second quarter of 2025 was $13.1 million; and
As of June 30, 2025, book value per share decreased 1% to $16.22 compared to the same period in 2024 but increased by $0.08 compared to the sequential quarter.

Asset Quality

Nonperforming assets, net of government guarantees, for the second quarter of 2025 decreased to $7.4 million, or 1.74% of total assets, compared to $13.5 million, or 2.80% of total assets, for the same period in 2024 and declined by $131,000 compared to the sequential quarter driven by the resolution of two nonperforming loans at no loss;
Net recoveries to average loans improved to 0.01% for the second quarter of 2025 compared to 0.01% for the same period in 2024 and net charge-offs of 0.60% for the sequential quarter; and
Allowance for credit losses represented 0.68% of total loans outstanding as of the second quarter of 2025, down from 1.18% for the same period in 2024 but up from 0.58% for the sequential quarter.

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 June 30, 2025, Touchmark reported total assets of $426 million and total shareholders' equity of $73 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)
			June 30,		December 31,
		(dollars in thousands, except per share data)	2025		2024⁽¹⁾
ASSETS		Cash and due from banks	$	704	$	1,184
		Interest-bearing deposits	65,967		41,408
		Federal funds sold	5,175		5,175
		Total cash and cash equivalents	71,846		47,767
		Securities:
		Available-for-sale	9,475		10,019
		Equity securities	1,598		1,654
		Loans, net of deferred fees	332,335		379,419
		Allowance for credit losses	(2,249)		(2,358)
		Net loans	330,086		377,061
		Bank premises and equipment, net	1,247		1,217
		Other Real Estate	6,888		6,888
		Deferred tax asset	1,088		1,112
		Other assets	3,779		4,573
		TOTAL ASSETS	$	426,007	$	450,291
LIABILITIES		Deposits:
		Noninterest-bearing	$	17,753	$	16,957
		Interest-bearing	330,311		352,590
		Total deposits	348,064		369,547
		Accounts payable and accrued liabilities	5,350		9,331
		TOTAL LIABILITIES	353,414		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	46,885		46,881
		Retained earnings	26,370		25,266
		Accumulated other comprehensive loss	(707)		(779)
		TOTAL SHAREHOLDERS' EQUITY	72,593		71,413

		TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	426,007	$	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 June 30,				Six Months Ended June 30,
	(dollars in thousands, except per share data)	2025		2024		2025			2024
INTEREST AND	Interest and fees on loans	$	4,673	$	7,058	$		10,876	$	14,962
DIVIDEND	Income on investment securities
INCOME	Taxable interest	685		111		1,220			229
	Interest from federal funds sold and other	57		663		113			1,462
	Total interest income	5,415		7,832		12,209			16,653
INTEREST	Interest on deposits	3,507		4,885		7,363			10,274
EXPENSE	Interest on borrowings	-		94		-			94
	Total interest expense	3,507		4,979		7,363			10,368
	Net interest income	1,908		2,853		4,846			6,285
	Provision for credit losses	150		186		445			186
	Net interest income after provision	1,758		2,667		4,401			6,099
NONINTEREST
INCOME	Service fees on deposit accounts	2		5		3			9
	Loan servicing fees	130		134		240			258
	Other noninterest income	472		1050		524			1,440
	Total noninterest income	604		1,189		767			1,707
NONINTEREST	Salaries and employee benefits	1,028		1,056		2,011			2,112
EXPENSE	Net occupancy expense	50		66		118			135
	Foreclosed Real Estate Expenses	79		249		132			491
	Data processing expense	91		86		185			171
	Referral Fees for Gov't Guaranteed Loans	5		99		32			99
	Loan Collection Expense	59		100		64			265
	Audits and exams expense	45		42		90			84
	Board Expenses	85		75		258			137
	Supervisory Assessments	95		230		188			376
	Other noninterest expense	314		389		609			592
	Total noninterest expense	1,851		2,392		3,687			4,462
	Income before provision for income taxes	511		1,464		1,481			3,344
	Provision for income taxes	141		363		377			823
	Net income	$	370	$	1,101	$		1,104	$	2,521

	Weighted average shares outstanding - basic	4,475,891		4,475,891		4,475,891			4,475,891
	Weighted average shares outstanding - diluted	4,583,737		4,583,737		4,583,737			4,583,737
	Earnings per share	$	0.08	$	0.25	$		0.25	$	0.56
	Diluted earnings per share	$	0.08	$	0.24	$	0.24		$	0.55

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

	For the Three Months Ended
(dollars in thousands, except per share data)	June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024
Results of Operations:
Interest income	$	5,415	$	6,793	$	7,301	$	7,873	$	7,832
Interest expense	3,507		3,855		4,285		4,697		4,979
Net interest income	1,908		2,938		3,016		3,176		2,853
Provision for credit losses	150		295		2,240		150		186
Non-interest income	604		162		4		884		1,189
Non-interest expense	1,851		1,836		1,256		1,908		2,392
Income (loss) before income taxes	511		969		(476)		2,002		1,464
Income taxes (benefit)	141		236		(184)		491		363
Net income (loss)	$	370	$	733	$	(292)	$	1,511	$	1,101
Per Share Data:
Basic earnings per share	$	0.08	$	0.16	$	(0.07)	$	0.34	$	0.25
Diluted earnings per share	$	0.08	$	0.16	$	(0.07)	$	0.33	$	0.24
Book value per share	$	16.22	$	16.14	$	15.95	$	16.72	$	16.32
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	4,583,737		4,583,737		4,583,737		4,583,737		4,583,737
Financial Condition Data and Ratios:
Loans, net of deferred fees	$	332,335	$	362,836	$	379,419	$	389,679	$	410,711
Allowance for credit losses	$	(2,249)	$	(2,092)	$	(2,358)	$	(4,673)	$	(4,858)
Total assets	$	426,007	$	432,421	$	450,291	$	464,973	$	480,229
Total deposits	$	348,064	$	354,099	$	369,547	$	382,641	$	398,841
Net interest margin	1.83 %		2.71 %		2.72 %		2.75 %		2.35 %
Efficiency	70.65 %		58.68 %		44.81 %		46.56 %		57.36 %

Asset Quality Data and Ratios:
Total nonperforming assets	$	22,409	$	23,042	$	23,039	$	27,735	$	30,089
Total nonperforming assets, net of government guarantees	7,422		7,553		7,552		11,059		13,450
Nonperforming assets to total assets	5.26 %		5.33 %		5.13 %		5.95 %		6.26 %
Nonperforming assets to total assets, net of government guarantees	1.74 %		1.75 %		1.68 %		2.37 %		2.80 %
Allowance for credit losses to total loans	0.68 %		0.58 %		0.62 %		1.20 %		1.18 %
Net (recoveries) charge-offs to average loans (annualized)	(0.01 %)		0.60 %		4.74 %		0.34 %		(0.01 %)