Touchmark Bancshares, Inc. Reports Third Quarter Results

Net income Rises 65% to $609,000

ALPHARETTA, Ga., Nov. 7, 2025 /PRNewswire/ -- Touchmark Bancshares, Inc. (OTC Pink: TMAK), the holding company for Touchmark National Bank, today reported financial results for the third quarter of 2025.

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

• Net income increases 65% to $609,000;
• Net interest margin jumps 75 basis points;
• Added a Senior Credit Officer;
• Reduced OREO by $1.1 million at no additional loss; and
• New customer growth rate accelerated.

"During the third quarter, net income rebounded to $609,000 driven by significant growth in our net interest margin supported by higher loan yields and lower deposit cost," said Bobby Krimmel, President and CEO of Touchmark National Bank. "New loan growth for the quarter was stronger than anticipated and resulted in the lowest percentage decline in the loan portfolio since December 2023. We expect net loan growth to turn positive for the fourth quarter of 2025, three months faster than previously expected and supported by a robust pipeline of $35 million in opportunities."

Krimmel continued, "We strategically reduced our non-core deposit balance during the quarter and shifted retail CD customers to money market accounts to improve the balance sheet mix. We added a new Senior Credit Officer and successfully disposed of a piece of OREO at no additional loss. Liquidity remains strong and supports expected future loan growth."

Third Quarter 2025 Results of Operations

• Net income decreased 60% to $609,000 for the third quarter of 2025 compared to the same period for 2024 but increased 65% from the sequential quarter driven by growth in interest income of $653,000 coupled with lower interest expense of $133,000 offset in part by lower non-interest income of $494,000;
• Net interest income decreased 15% to $2.7 million for the third quarter of 2025 compared to the same period for 2024 but increased by $786,000, or 41%, from the sequential quarter driven by lower loan purchase premium amortization of $1 million and declining deposit funding cost of $133,000;
• Non-interest income decreased 88% to $110,000 for the third quarter of 2025 compared to the same period for 2024 and decreased by $494,000, or 82%, from the sequential quarter driven by a decline in early loan prepayment revenue of $466,000; and
• Non-interest expense decreased 4% to $1.8 million compared to the same period for 2024 and decreased by $11,000 from the sequential quarter driven by a decline in salaries and employee benefits expense of $102,000 offset by an increase in OREO holding expense of $94,000.

Balance Sheet and Capital

• Total loans declined by $60 million, or 15%, to $329 million during the third quarter of 2025 compared to the same period in 2024 and decreased by $3 million, or 1%, from the sequential quarter driven by normal amortization of the loan portfolio of $5.8 million partially offset by new loan growth of $2.9 million;
• Total deposits declined by $44 million, or 11%, to $339 million during the third quarter of 2025 compared to the same period in 2024 and decreased by $9 million, or 3%, from the sequential quarter driven by a reduction in non-core deposits of $6.8 million, lower retail checking and money market balances of $1.7 million and time deposits of $549,000. New customer balance growth during the third quarter of 2025 was $16.6 million and replaced most of the balance runoff; and
• As of September 30, 2025, book value per share decreased 2% to $16.39 compared to the same period in 2024 but increased by $0.17 compared to the sequential quarter.

Asset Quality

• Nonperforming assets, net of government guarantees, for the third quarter of 2025 decreased to $6.5 million, or 1.55% of total assets, compared to $11.1 million, or 2.37% of total assets, for the same period in 2024 and declined by $944,000 compared to the sequential quarter driven by the resolution of an OREO asset for $1.1 million at no additional loss;
• Net recoveries to average loans improved to 0.00% for the third quarter of 2025 compared to net charge-offs of 0.34% for the same period in 2024 and net recoveries of 0.01% for the sequential quarter; and
• Allowance for credit losses represented 0.73% of total loans outstanding as of the third quarter of 2025, down from 1.20% for the same period in 2024 but up from 0.68% 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 Cherokee, Cobb, Dekalb, Forsyth, Gwinnett, and North Fulton counties. As of September 30, 2025, Touchmark reported total assets of $418 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)
				September 30,			December 31,
		(dollars in thousands, except per share data)		2025			2024 (1)
ASSETS		Cash and due from banks		$	897		$	1,184
		Interest-bearing deposits		60,299			41,408
		Federal funds sold		5,175			5,175
		Total cash and cash equivalents		66,371			47,767
		Securities:
		Available-for-sale		10,477			10,019
		Equity securities		1,598			1,654
		Loans, net of deferred fees		329,437			379,419
		Allowance for credit losses		(2,398)			(2,358)
		Net loans		327,039			377,061
		Bank premises and equipment, net		1,273			1,217
		Other Real Estate		5,826			6,888
		Deferred tax asset		1,040			1,112
		Other assets		4,132			4,573
		TOTAL ASSETS		$	417,756		$	450,291
LIABILITIES		Deposits:
		Noninterest-bearing		$	13,009		$	16,957
		Interest-bearing		326,023			352,590
		Total deposits		339,032			369,547
		Accounts payable and accrued liabilities		5,377			9,331
		TOTAL LIABILITIES		344,409			378,878
SHAREHOLDERS'		Common stock - $0.01 par value per share, 50,000,000 shares
EQUITY		authorized; 4,475,892 shares issued and outstanding as of
		the periods presented		45			45
		Additional paid-in capital		46,885			46,881
		Retained earnings		26,979			25,266
		Accumulated other comprehensive loss		(562)			(779)
		TOTAL SHAREHOLDERS' EQUITY		73,347			71,413
		TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	417,756		$	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 September 30,						Nine Months Ended September 30,
	(dollars in thousands, except per share data)	2025			2024			2025				2024
INTEREST AND	Interest and fees on loans	$	5,144		$	7,113		$		16,020		$	22,075
DIVIDEND	Income on investment securities
INCOME	Taxable interest	112			105			321				208
	Interest from federal funds sold and other	812			655			1,935				2,243
	Total interest income	6,068			7,873			18,276				24,526
INTEREST	Interest on deposits	3,374			4,633			10,736				14,907
EXPENSE	Interest on borrowings	-			64			-				158
	Total interest expense	3,374			4,697			10,736				15,065
	Net interest income	2,694			3,176			7,540				9,461
	Provision for credit losses	150			150			595				336
	Net interest income after provision	2,544			3,026			6,945				9,125
NONINTEREST
INCOME	Service fees on deposit accounts	5			4			6				6
	Loan servicing fees	98			134			338				392
	Other noninterest income	7			746			533				2,193
	Total noninterest income	110			884			877				2,591
NONINTEREST	Salaries and employee benefits	926			1,136			2,937				3,248
EXPENSE	Net occupancy expense	75			71			193				206
	Foreclosed Real Estate Expenses	173			53			305				543
	Data processing expense	95			85			280				256
	Loan Collection Expense	101			12			165				397
	Audits and exams expense	45			43			135				127
	Board Expenses	77			93			335				230
	Supervisory Assessments	75			140			263				517
	Other noninterest expense	273			258			914				847
	Total noninterest expense	1,840			1,891			5,527				6,371
	Income before provision for income taxes	814			2,019			2,294				5,345
	Provision for income taxes	205			491			582				1,314
	Net income	$	609		$	1,528		$		1,712		$	4,031
	Weighted average shares outstanding - basic	4,475,892			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	$	0.14		$	0.34		$		0.38		$	0.90
	Diluted earnings per share	$	0.13		$	0.33		$	0.37			$	0.88

TOUCHMARK BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)
	For the Three Months Ended
(dollars in thousands, except per share data)	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
Results of Operations:
Interest income	$	6,068		$	5,415		$	6,793		$	7,301		$	7,873
Interest expense	3,374			3,507			3,855			4,285			4,697
Net interest income	2,694			1,908			2,938			3,016			3,176
Provision for credit losses	150			150			295			2,240			150
Non-interest income	110			604			162			4			884
Non-interest expense	1,840			1,851			1,836			1,256			1,908
Income (loss) before income taxes	814			511			969			(476)			2,002
Income taxes (benefit)	205			141			236			(184)			491
Net income (loss)	$	609		$	370		$	733		$	(292)		$	1,511
Per Share Data:
Basic earnings per share	$	0.14		$	0.08		$	0.16		$	(0.07)		$	0.34
Diluted earnings per share	$	0.13		$	0.08		$	0.16		$	(0.07)		$	0.33
Book value per share	$	16.39		$	16.22		$	16.14		$	15.95		$	16.72
Weighted average shares outstanding per quarter - basic	4,475,892			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	$	329,437		$	332,335		$	362,836		$	379,419		$	389,679
Allowance for credit losses	$	(2,398)		$	(2,249)		$	(2,092)		$	(2,358)		$	(4,673)
Total assets	$	417,756		$	426,007		$	432,421		$	450,291		$	464,973
Total deposits	$	339,032		$	348,064		$	354,099		$	369,547		$	382,641
Net interest margin	2.58 %			1.83 %			2.71 %			2.72 %			2.75 %
Efficiency	64.26 %			70.65 %			58.68 %			44.81 %			46.56 %
Asset Quality Data and Ratios:
Total nonperforming assets	$	22,323		$	22,409		$	23,042		$	23,039		$	27,735
Total nonperforming assets, net of government guarantees	6,478			7,422			7,553			7,552			11,059
Nonperforming assets to total assets	5.34 %			5.26 %			5.33 %			5.13 %			5.95 %
Nonperforming assets to total assets, net of government guarantees	1.55 %			1.74 %			1.75 %			1.68 %			2.37 %
Allowance for credit losses to total loans	0.73 %			0.68 %			0.58 %			0.62 %			1.20 %
Net (recoveries) charge-offs to average loans (annualized)	(0.00 %)			(0.01 %)			0.60 %			4.74 %			0.34 %

SOURCE Touchmark Bancshares, Inc.