TOUCHMARK BANCSHARES, INC. REPORTS THIRD QUARTER 2026 RESULTS

Net Income Jumps 39%

ATLANTA, Oct. 26, 2026 /PRNewswire/ -- Touchmark Bancshares, Inc. (OTCID: TMAK), the holding company for Touchmark National Bank, today reported net income of $849,000, or $0.19 per diluted share, for the third quarter of 2026, compared with $609,000, or $0.13 per diluted share, for the third quarter of 2025. For the nine months ended September 30, 2026, net income was $1.70 million, or $0.37 per diluted share, compared with $1.71 million, or $0.37 per diluted share, for the same period in 2025.

Quarterly Highlights

• Net income increased 39% from the same period last year;
• Net interest margin expanded to 2.81%;
• Efficiency dropped to 60.64%;
• Nonperforming assets decreased 15% from the prior quarter; and
• The Company repurchased 15,000 shares of common stock in the open market.

"We made significant progress during the third quarter optimizing our balance sheet to support growth in net income, net interest margin and efficiency," said Bobby Krimmel, President and Chief Executive Officer of Touchmark Bancshares, Inc.  "Net income reached the highest level in two years while efficiency improved to an 18-month low. We experienced a slowdown in lending activity during the quarter with $2.7 million in new loan commitments as many of the companies we were working with turned cautious because of higher interest rates and inflation.  However, we anticipate the slowdown to be temporary with a return to organic loan growth during the fourth quarter at a similar pace experienced earlier this year." 

Krimmel continued, "During the quarter we welcomed 28 new loan and deposit customers to Touchmark and continued to experience growth in our relationship banking model. We made significant progress in resolving our nonperforming assets which dropped by $3.3 million to a three-year low. Interest expense declined for the 10^th consecutive quarter as we continued our strategy to exit non-relationship deposit customers. We replaced our Company's website with a new modern look with more information about Touchmark National Bank and changed the website domain to TouchmarkBank.com to make it easier for new prospects to find us.  The Company continued its stock repurchase program during the quarter, buying 15,000 shares in the open market at a 35% discount to book value." 

Third Quarter 2026 Results of Operations

• Net income increased 39% to $849,000 for the third quarter of 2026, compared with $609,000 for the third quarter of 2025, and increased from $752,000 in the prior quarter. The sequential-quarter increase was driven primarily by a $132,000 increase in net interest income, a $170,000 decrease in the provision for credit losses, and a $44,000 decrease in noninterest expense. These improvements were partially offset by a $219,000 gain recognized in the prior quarter from the recovery of a loan guaranty.

• Net interest income increased 4.2% to $2.8 million for the third quarter of 2026, compared with $2.7 million for the third quarter of 2025, and increased $132,000, or 4.9%, from the prior quarter. The sequential-quarter increase reflected continued margin expansion from funding-cost management and the addition of higher-yielding assets. It also included $203,000 of interest income recognized on a government-guaranteed nonperforming loan, partially offset by an $89,000 prepayment penalty recognized in the second quarter of 2026.

• Year-to-date loan production totaled $26.5 million, compared with $11.5 million for the same period in 2025. Excluding loan premium amortization, the yield on loans increased 37 basis points to 7.21% from 6.84% in the prior quarter, while the cost of funds improved by 3 basis points to 3.05% from 3.08%.  These factors contributed to an increase in the Bank's net interest margin to 2.81%, its highest level since 2024.

• Noninterest income was $102,000 for the third quarter of 2026, compared with $110,000 for the third quarter of 2025 and $329,000 in the prior quarter.  The higher level in the prior quarter primarily reflected a $219,000 gain from the recovery of a government loan guaranty.

• Noninterest expense decreased 3.0% to $1.8 million for the third quarter of 2026, compared with the third quarter of 2025, and decreased $44,000, or 2.4%, from the prior quarter.  The decrease primarily reflected lower compensation and employee benefit expenses, partially offset by higher other real estate and loan collection expenses.  The efficiency ratio improved to 60.64% for the quarter, compared with 64.26% in the third quarter of 2025 and 64.00% from the prior quarter.

Balance Sheet and Capital

• Total assets decreased $12.5 million, or 3.0%, during the third quarter of 2026 to $403.6 million compared to the sequential quarter. The decrease primarily reflected a reduction of $12.6 million in net deposit outflows while loan balances declined $10.0 million and the securities portfolio increased $8.3 million.

• Total loans decreased $10.0 million, or 3.2%, to $307.4 million during the third quarter of 2026 compared to the sequential quarter.  The decrease from the prior quarter reflected $12.4 million in loan payoffs and principal repayments along with $1.3 million of loan premium amortization on government-guaranteed purchased loans, partially offset by $3.7 million of new loan growth.

• Total deposits decreased $12.6 million, or 3.7%, to $325.5 million during the third quarter of 2026 compared to the sequential quarter. The decrease from the prior quarter primarily reflected declines of $14.3 million in time deposits and $1.2 million in demand deposits, partially offset by $2.9 million growth in money market deposits.

• Book value per share was $16.16 at September 30, 2026, compared with $16.39 at September 30, 2025 and $16.03 at June 30, 2026; and

• The Bank remained well-capitalized as of September 30, 2026, with a leverage ratio of 13.39% and tier 1 risk-based capital ratio of 45.92%.

Asset Quality

• Total nonperforming assets decreased $3.3 million, or 15%, from the prior quarter and $3.6 million, or 16%, from the third quarter of 2025. Nonperforming assets, net of government guarantees, were $6.3 million, or 1.56% of total assets, at September 30, 2026, compared with $6.4 million, or 1.54% of total assets, at June 30, 2026 and $6.5 million, or 1.55% of total assets, at September 30, 2025.

• Net charge-offs were 0.26% of average loans during the third quarter of 2026, primarily reflecting charge-offs of premiums associated with legacy government-guaranteed purchased loans that paid off during the quarter. This compared with no charge-offs in the third quarter of 2025 and net recoveries of 0.05% in the prior quarter; and

• The allowance for credit losses represented 0.79% of total loans at September 30, 2026, compared with 0.73% at September 30, 2025 and 0.83% at June 30, 2026.

Capital Management Initiatives

During the third quarter of 2026, the Company repurchased 15,000 shares of common stock in the open market at an average price of $10.51 per share, representing a 35.0% discount to book value per share at September 30, 2026. The current program has remaining authorization to repurchase 170,000 shares and is scheduled to expire on May 26, 2027, unless extended or completed earlier.

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. The Bank serves Cherokee, Cobb, DeKalb, Forsyth, Gwinnett, and North Fulton counties. As of September 30, 2026, Touchmark reported total assets of $404 million and total shareholders' equity of $72 million. For more information, visit www.TouchmarkBank.com and select 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.

Certain prior-year accounts were reclassified to conform to the current year presentation.

SOURCE Touchmark Bancshares, Inc.