Touchstone Bankshares' Financial Condition Remains Strong

PRINCE GEORGE, Va., March 16, 2023 /PRNewswire/ -- Touchstone Bankshares, Inc. (the "Company") (OTC Pink: TSBA), parent company of Touchstone Bank (the "Bank"), is providing an update on its financial condition given recent market turmoil.

James Black, President and CEO, stated, "Touchstone Bank is strong, diversified, and well-capitalized. Our capital strength is well above what is required by federal regulation. For over 117 years, we have made decisions that support our communities. We are proud to be a community bank with a well-diversified deposit base and loan portfolio that meet the unique needs of our community. We also hold a Superior 5-Star rating from Bauer Financial, an independent financial rating company for financial strength and performance amongst banks nationwide.

Given the concerns in the market associated with the recent failures of Signature Bank and Silicon Valley Bank, we wanted to reassure our customers and shareholders that our conservative operating philosophy and relationship banking model make us significantly different from those banks. In fact, our net deposits have grown during the first quarter of 2023 and have grown further since the announced failures of Signature Bank and Silicon Valley Bank.

We are monitoring the status of the Bank's $1.0 million subordinated debt investment with Signature Bank. We may be forced to recognize an impairment charge on this security, which would adversely impact the Bank's earnings in the period in which the charge is recognized. Regardless of the outcome of this investment, Touchstone Bank will continue to hold capital well in excess of regulatory standards for well-capitalized status and will have ample liquidity to ensure our customers have the financial resources to meet their obligations and grow their businesses.  We have no other direct exposures to Signature Bank or Silicon Valley Bank."

Touchstone Bankshares, Inc. is the bank holding company for Touchstone Bank. Most the Company's business activities are conducted through Touchstone Bank. Touchstone Bank is a full-service community bank headquartered in Prince George, Virginia. The Bank has ten branches serving Southern and Central Virginia and two branches and two loan centers serving Northern North Carolina. Visit www.touchstone.bank for more information.

In addition to historical information, this press release may contain certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. For this purpose, any statement that is not a statement of historical fact may be deemed to be a forward-looking statement. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, and actual results could differ materially from historical results or those anticipated by such statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to, changes in interest rates and general economic conditions; the legislative/regulatory climate; monetary and fiscal policies of the U.S. Government; the quality or composition of the loan or investment portfolios; demand for loan products; deposit flows; competition; demand for financial services in the Company's market area; mergers, acquisitions and dispositions; implementation of new technologies and the ability to develop and maintain secure and reliable electronic systems; and tax and accounting rules, principles, policies and guidelines.

SOURCE Touchstone Bankshares, Inc.