TOUCHMARK BANCSHARES, INC. REPORTS FOURTH QUARTER RESULTS
MWN-AI** Summary
Touchmark Bancshares, Inc. (OTCID: TMAK), the holding company for Touchmark National Bank, recently announced its financial results for the fourth quarter and full year ending December 31, 2025. Notably, the company reported a net income of $439,000 for Q4, a significant turnaround from a net loss of $308,000 in the same quarter of the previous year. However, this marks a 28% decrease from the prior quarter due to accelerated amortization of loan purchase premiums, which increased expenses by $310,000.
During the quarter, Touchmark's loan production reached $6 million, the highest quarterly growth rate in over two years, despite facing $4.5 million in unexpected loan payoffs. Meanwhile, total deposits declined by $31 million (8%) year-over-year, primarily due to reductions in time deposits and brokered deposits, although there was growth in money market accounts.
Key financial metrics highlight a decline in net interest income, which fell by 21% to $2.4 million compared to Q4 2024. Nonetheless, the bank has taken steps to strengthen its leadership, with the appointment of Addam Taussig as Chief Lending Officer and a commitment to foster new customer relationships.
Touchmark declared an annual dividend of $0.65 per share for 2025. As of the end of 2025, total assets stood at $418 million, with a book value per share of $15.84. The company's nonperforming assets diminished slightly to $6.5 million, making up 1.56% of total assets. Despite the challenges, Touchmark remains focused on enhancing organic loan growth and solidifying its customer base, targeting small to medium-sized businesses.
MWN-AI** Analysis
In reviewing Touchmark Bancshares, Inc. (OTCID: TMAK) and its fourth quarter results, several key factors emerge that may influence investment decisions moving forward. The reported net income of $439,000 shows a favorable shift from a net loss in the same quarter last year, yet it reflects a significant 28% decrease compared to the prior quarter. This could indicate a concerning trend for investors, especially given the notable decrease in net interest income and the challenges posed by loan payoffs.
However, it is noteworthy that the bank has managed to mitigate some operational challenges. The increase in deposits, particularly in non-brokered accounts, bodes well for future liquidity. The appointment of a new Chief Lending Officer may further catalyze growth, as new loan production reached a quarterly high of $6 million. The commitment to full relationship banking for small to medium-sized businesses highlights a strategic pivot that could stake a beneficial position in the market moving forward.
Despite the drop in total loans by 14% year-over-year, the bank’s emphasis on building a more sustainable funding strategy through organic growth and new deposit relationships is commendable. Investors should also be aware of the accelerated premium amortization that negatively impacted profitability, resulting in higher loan purchase costs.
Given the current landscape, potential investors might want to approach Touchmark with caution. While there are several positive signals, including a declared annual dividend of $0.65 per share, the underlying pressures on net income and loan growth warrant careful observation. The bank's future performance will hinge upon successfully capitalizing on its growth strategies and enhancing its operational efficiency. Monitoring these developments will be crucial for any potential investment decisions.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
Strengthens Leadership Team and Maintains Annual Dividend
ALPHARETTA, Ga., Feb. 11, 2026 /PRNewswire/ -- Touchmark Bancshares, Inc. (OTCID: TMAK), the holding company for Touchmark National Bank, today reported financial results for the fourth quarter and year ended December 31, 2025.
Key highlights of Touchmark Bancshares' results for the quarter ending December 31, 2025 include:
- Net income decreased 28% to $439,000, driven by the acceleration of unamortized premiums;
- Deposits, excluding brokered, increased by $2.6 million along with a reduction in deposit expense;
- Added a Chief Lending Officer and new loan production topped $6 million; and
- Declared $0.65 per share annual dividend.
"During the fourth quarter, net loan growth did not turn positive as expected because of unexpected loan payoffs totaling $4.5 million even though new loan production for the quarter topped $6 million, the highest quarterly growth rate in over two years," said Bobby Krimmel, President and CEO of Touchmark National Bank. "Deposit growth, excluding brokered deposits, turned positive for the quarter with new customer growth in core non-interest checking and money market accounts on top of a reduction in deposit expense of 23 basis points. Net income fell below our expectations for the quarter because loan purchase premium amortization expense accelerated by $310,000."
Krimmel continued, "We added Addam Taussig as our Executive Vice President and Chief Lending Officer during the quarter, and he quickly delivered the highest quarter of loan production for the year and built a pipeline of opportunities for Touchmark that top $40 million. We continue to reshape the balance sheet with organic loan growth, new deposit relationships and a reduction in non-core funding dependence with our growth strategy focused on full relationship banking for entrepreneurs, small and medium sized businesses with revenue up to $50 million."
Fourth Quarter 2025 Results of Operations
- Net income increased to $439,000 for the fourth quarter of 2025 compared to a net loss of $308,000 for the same period for 2024 but decreased 28% from the sequential quarter, driven by lower net interest income of $311,000;
- Net interest income decreased 21% to $2.4 million for the fourth quarter of 2025 compared to the same period for 2024 and declined by $311,000, or 12%, from the sequential quarter driven by higher loan purchase premium amortization expense of $310,000 driven by the unexpected payoff of purchased loans;
- Non-interest income decreased 16% to $152,000 for the fourth quarter of 2025 compared to the same period for 2024 but increased by $42,000, or 38%, from the sequential quarter driven by an increase in early loan prepayment revenue of $40,000; and
- Non-interest expense increased 34% to $1.9 million compared to the same period for 2024 and increased by $102,000 from the sequential quarter driven by higher salaries and employee benefits expense of $71,000.
Balance Sheet and Capital
- Total loans declined by $55 million, or 14%, to $325 million during the fourth quarter of 2025 compared to the same period in 2024 and decreased by $4.7 million, or 1%, from the sequential quarter driven by normal amortization of the loan portfolio of $6.2 million and unexpected loan payoffs from the purchased loan portfolio of $4.5 million partially offset by new loan growth of $6.1 million;
- Total deposits decreased by $31 million, or 8%, to $339 million during the fourth quarter of 2025 compared to the same period in 2024 driven by a reduction in time deposits of $34.2 million, brokered deposits of $31.6 million, and internet time deposits of $7.9 million offset in part by growth in money market deposits of $42.6 million. Total deposits declined by $338,000 from the sequential quarter, driven by a reduction in time deposits of $16.5 million, brokered deposits of $2.9 million, internet time deposits of $2.7 million, offset in part by growth in money market deposits of $17.1 million and non-interest bearing demand deposits of $4.7 million;
- As of December 31, 2025, book value per share decreased 1% to $15.84 compared to the same period in 2024 and decreased by $0.55 compared to the sequential quarter; and
- The Company declared its annual dividend for 2025 at $0.65 per share.
Asset Quality
- Nonperforming assets, net of government guarantees, for the fourth quarter of 2025 decreased to $6.5 million, or 1.56% of total assets, compared to $7.6 million, or 1.68% of total assets, for the same period in 2024 but increased by $43,000 compared to the sequential quarter driven by a small problem loan that is in resolution;
- Net charge-offs to average loans increased to 0.01% for the fourth quarter of 2025 compared to net charge-offs of 4.74% for the same period in 2024 and net recoveries of 0.00% for the sequential quarter; and
- Allowance for credit losses represented 0.78% of total loans outstanding as of the fourth quarter of 2025, up from 0.62% for the same period in 2024 and from 0.73% 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 December 31, 2025, Touchmark reported total assets of $418 million and total shareholders' equity of $71 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) | ||||||||
December 31, | December 31, | |||||||
(dollars in thousands, except per share data) | 2025 | 2024(1) | ||||||
ASSETS | Cash and due from banks | $ | 546 | $ | 1,184 | |||
Interest-bearing deposits | 65,102 | 41,408 | ||||||
Federal funds sold | 5,175 | 5,175 | ||||||
Total cash and cash equivalents | 70,823 | 47,767 | ||||||
Securities: | ||||||||
Available-for-sale | 10,806 | 10,019 | ||||||
Equity securities | 1,598 | 1,654 | ||||||
Loans, net of deferred fees | 324,725 | 379,419 | ||||||
Allowance for credit losses | (2,543) | (2,358) | ||||||
Net loans | 322,182 | 377,061 | ||||||
Bank premises and equipment, net | 1,490 | 1,217 | ||||||
Other Real Estate | 5,826 | 6,888 | ||||||
Deferred tax asset | 1,351 | 1,112 | ||||||
Other assets | 3,561 | 4,573 | ||||||
TOTAL ASSETS | $ | 417,637 | $ | 450,291 | ||||
LIABILITIES | Deposits: | |||||||
Noninterest-bearing | $ | 17,722 | $ | 16,957 | ||||
Interest-bearing | 320,972 | 352,590 | ||||||
Total deposits | 338,694 | 369,547 | ||||||
Accounts payable and accrued liabilities | 8,027 | 9,331 | ||||||
TOTAL LIABILITIES | 346,721 | 378,878 | ||||||
SHAREHOLDERS' | Common stock - $0.01 par value per share, 50,000,000 shares | |||||||
EQUITY | authorized; 4,476,891 shares issued and outstanding as of | |||||||
the periods presented | 45 | 45 | ||||||
Additional paid-in capital | 46,895 | 46,881 | ||||||
Retained earnings | 24,523 | 25,266 | ||||||
Accumulated other comprehensive loss | (547) | (779) | ||||||
TOTAL SHAREHOLDERS' EQUITY | 70,916 | 71,413 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 417,637 | $ | 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 December 31, | Twelve Months Ended December 31, | |||||||||||
(dollars in thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | ||||||||
INTEREST AND | Interest and fees on loans | $ | 4,650 | $ | 6,628 | $ | 20,670 | $ | 28,703 | |||
DIVIDEND | Income on investment securities | |||||||||||
INCOME | Taxable interest | 118 | 111 | 439 | 445 | |||||||
Interest from federal funds sold and other | 705 | 562 | 2,640 | 2,679 | ||||||||
Total interest income | 5,473 | 7,301 | 23,749 | 31,827 | ||||||||
INTEREST | Interest on deposits | 3,090 | 4,265 | 13,827 | 19,172 | |||||||
EXPENSE | Interest on borrowings | - | 20 | - | 178 | |||||||
Total interest expense | 3,090 | 4,285 | 13,827 | 19,350 | ||||||||
Net interest income | 2,383 | 3,016 | 9,922 | 12,477 | ||||||||
Provision for credit losses | 150 | 2,240 | 745 | 2,576 | ||||||||
Net interest income after provision | 2,233 | 776 | 9,177 | 9,901 | ||||||||
NONINTEREST | ||||||||||||
INCOME | Service fees on deposit accounts | 6 | 4 | 17 | 18 | |||||||
Loan servicing fees | 101 | 114 | 439 | 678 | ||||||||
Loan Prepayment Penalties | 39 | 2 | 549 | 1,058 | ||||||||
Gain on Loan Sales | 0 | 39 | - | 748 | ||||||||
Other noninterest income | 6 | 22 | 24 | 469 | ||||||||
Total noninterest income | 152 | 181 | 1,029 | 2,971 | ||||||||
NONINTEREST | Salaries and employee benefits | 997 | 741 | 3,934 | 3,989 | |||||||
EXPENSE | Net occupancy expense | 83 | 68 | 276 | 328 | |||||||
Foreclosed Real Estate Expenses | 163 | 56 | 468 | 626 | ||||||||
Data processing expense | 96 | 88 | 376 | 344 | ||||||||
Loan Collection Expense | 51 | 6 | 259 | 265 | ||||||||
Audits and exams expense | 45 | 45 | 180 | 172 | ||||||||
Board Expenses | 78 | 58 | 413 | 344 | ||||||||
Supervisory Assessments | 97 | 73 | 360 | 589 | ||||||||
Other noninterest expense | 332 | 314 | 1,203 | 1,346 | ||||||||
Total noninterest expense | 1,942 | 1,449 | 7,469 | 8,003 | ||||||||
Income before provision for income taxes | 443 | (492) | 2,737 | 4,854 | ||||||||
Provision for income taxes | 4 | (184) | 586 | 1,130 | ||||||||
Net income | $ | 439 | $ | (308) | $ | 2,151 | $ | 3,740 | ||||
Weighted average shares outstanding - basic | 4,476,630 | 4,475,891 | 4,476,077 | 4,475,891 | ||||||||
Weighted average shares outstanding - diluted | 4,583,070 | 4,583,737 | 4,583,570 | 4,583,737 | ||||||||
Earnings per share | $ | 0.10 | $ | (0.07) | $ | 0.48 | $ | 0.83 | ||||
Diluted earnings per share | $ | 0.10 | $ | (0.07) | $ | 0.47 | $ | 0.82 |
TOUCHMARK BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)
| ||||||||||||||
For the Three Months Ended | ||||||||||||||
(dollars in thousands, except per share data) | December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||
Results of Operations: | ||||||||||||||
Interest income | $ | 5,473 | $ | 6,068 | $ | 5,415 | $ | 6,793 | $ | 7,301 | ||||
Interest expense | 3,090 | 3,374 | 3,507 | 3,855 | 4,285 | |||||||||
Net interest income | 2,383 | 2,694 | 1,908 | 2,938 | 3,016 | |||||||||
Provision for credit losses | 150 | 150 | 150 | 295 | 2,240 | |||||||||
Non-interest income | 152 | 110 | 604 | 162 | 181 | |||||||||
Non-interest expense | 1,942 | 1,840 | 1,851 | 1,836 | 1,449 | |||||||||
Income (loss) before income taxes | 443 | 814 | 511 | 969 | (492) | |||||||||
Income taxes (benefit) | 4 | 205 | 141 | 236 | (184) | |||||||||
Net income (loss) | $ | 439 | $ | 609 | $ | 370 | $ | 733 | $ | (308) | ||||
Per Share Data: | ||||||||||||||
Basic earnings per share | $ | 0.10 | $ | 0.14 | $ | 0.08 | $ | 0.16 | $ | (0.07) | ||||
Diluted earnings per share | $ | 0.10 | $ | 0.13 | $ | 0.08 | $ | 0.16 | $ | (0.07) | ||||
Book value per share | $ | 15.84 | $ | 16.39 | $ | 16.22 | $ | 16.14 | $ | 15.95 | ||||
Weighted average shares outstanding per quarter - basic | 4,476,630 | 4,475,892 | 4,475,891 | 4,475,891 | 4,475,891 | |||||||||
Weighted average shares outstanding per quarter - diluted | 4,583,070 | 4,583,737 | 4,583,737 | 4,583,737 | 4,583,737 | |||||||||
Financial Condition Data and Ratios: | ||||||||||||||
Loans, net of deferred fees | $ | 324,725 | $ | 329,437 | $ | 332,335 | $ | 362,836 | $ | 379,419 | ||||
Allowance for credit losses | $ | (2,543) | $ | (2,398) | $ | (2,249) | $ | (2,092) | $ | (2,358) | ||||
Total assets | $ | 418,375 | $ | 417,756 | $ | 426,007 | $ | 432,421 | $ | 450,291 | ||||
Total deposits | $ | 338,694 | $ | 339,032 | $ | 348,064 | $ | 354,099 | $ | 369,547 | ||||
Net interest margin | 2.32 % | 2.58 % | 1.83 % | 2.71 % | 2.72 % | |||||||||
Efficiency | 75.08 % | 64.26 % | 70.65 % | 58.68 % | 44.81 % | |||||||||
Asset Quality Data and Ratios: | ||||||||||||||
Total nonperforming assets | $ | 25,080 | $ | 22,323 | $ | 22,409 | $ | 23,042 | $ | 23,039 | ||||
Total nonperforming assets, net of government guarantees | 6,521 | 6,478 | 7,422 | 7,553 | 7,552 | |||||||||
Nonperforming assets to total assets | 5.99 % | 5.34 % | 5.26 % | 5.33 % | 5.13 % | |||||||||
Nonperforming assets to total assets, net of government guarantees | 1.56 % | 1.55 % | 1.74 % | 1.75 % | 1.68 % | |||||||||
Allowance for credit losses to total loans | 0.78 % | 0.73 % | 0.68 % | 0.58 % | 0.62 % | |||||||||
Net (recoveries) charge-offs to average loans (annualized) | 0.01 % | (0.00 %) | (0.01 %) | 0.60 % | 4.74 % | |||||||||
SOURCE Touchmark Bancshares, Inc.
FAQ**
What specific factors contributed to the 28% decrease in net income to $439,000 for Touchmark Bancshares Inc TMAK in the fourth quarter of 2025, particularly regarding the acceleration of unamortized premiums?
How does the unexpected loan payoffs of $4.5 million in Q4 20impact Touchmark Bancshares Inc TMAK's future loan growth and overall lending strategy moving forward?
Can you elaborate on the significance of the new Executive Vice President and Chief Lending Officer's appointment for Touchmark Bancshares Inc TMAK, particularly concerning the $40 million loan pipeline generated?
With total deposits decreasing by 8% to $339 million in Q4 2025, what strategies does Touchmark Bancshares Inc TMAK plan to implement to stabilize and grow deposit levels in the upcoming quarters?
**MWN-AI FAQ is based on asking OpenAI questions about Touchmark Bancshares Inc (OTC: TMAK).
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