ALPHARETTA, Ga., Nov. 7, 2025 /PRNewswire/ -- Touchmark Bancshares, Inc. (OTC: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 SUBSIDIARYCONSOLIDATED 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
