TOUCHMARK BANCSHARES, INC. REPORTS SECOND QUARTER RESULTS
MWN-AI** Summary
Touchmark Bancshares, Inc. (OTC Pink: TMAK), the parent company for Touchmark National Bank, recently released its financial results for the second quarter of 2025. The bank experienced a notable decline in net income, reporting a 66% decrease year-over-year to $370,000, largely influenced by unexpected loan payoffs totaling over $28 million. These payoffs contributed to a loss of $466,000 in net income for the quarter. The net interest income also fell by 33% to $1.9 million, driven by $1.1 million in loan purchase premium write-offs.
Despite these challenges, the bank successfully reduced its cost of deposits by 27 basis points and reported a solid customer balance growth of $13.1 million in deposits. The bank also maintained a promising loan pipeline of $11.3 million for the upcoming third quarter, following the hiring of two new commercial bankers to enhance its banking operations and compliance capabilities.
Total loans decreased by $78 million, or 19%, from the previous year, attributed to the unexpected loan payoffs and amortization of loan portfolios. However, new loan origination was noted at $4.5 million during the quarter. Deposits also fell by $51 million, with a significant decline in non-core deposits.
In terms of asset quality, nonperforming assets, net of government guarantees, saw improvement to 1.74% of total assets compared to 2.80% a year earlier. The bank's allowance for credit losses was reported at 0.68% of total loans, reflecting a decrease from the previous year's allowance. Touchmark remains committed to addressing regulatory concerns under its Formal Agreement with the OCC, positioning itself for future growth.
MWN-AI** Analysis
Touchmark Bancshares, Inc. (OTC Pink: TMAK) has recently reported its second quarter results for 2025, revealing a significant decline in both net income and net interest income compared to the previous year. While the company is facing headwinds from unexpected loan payoffs and a substantial reduction in total loans, there are encouraging signs worth noting.
Net income fell dramatically by 66% year-over-year to $370,000, largely impacted by $466,000 in loan payoffs that essentially eliminated any positive momentum. Net interest income decreased 33% to $1.9 million, undermined by $1.1 million in loan purchase premium write-offs. This downturn, however, is somewhat alleviated by a decrease in deposit costs, which may help in stabilizing margins moving forward.
The company's proactive measures, including the reduction of deposit costs by 27 basis points and the recruitment of new commercial banking talent, suggest a strategy aimed at recovering from the current downturn. Notably, the improvement in the active loan pipeline to $11.3 million indicates potential for positive growth in upcoming quarters.
From a balance sheet perspective, Touchmark's total assets declined to $426 million, driven by a reduction in loans and deposits. The decrease in nonperforming assets is a positive indicator of improved asset quality, which may appeal to potential investors seeking stability in a challenging environment.
Investors should monitor Touchmark closely in the coming months, especially in light of management's guidance that anticipates future loan growth. While immediate past results are discouraging, strategic hires and effective cost management may position the bank for a turnaround. Now may not be the ideal entry point, but careful observation of upcoming quarters could unveil a potentially attractive buying opportunity if management's expectations of growth materialize.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
ALPHARETTA, Ga. , Aug. 6, 2025 /PRNewswire/ -- Touchmark Bancshares, Inc. (OTC Pink: TMAK), the holding company for Touchmark National Bank, today reported financial results for the second quarter of 2025.
Key highlights of Touchmark Bancshares' results for the second quarter of 2025 include:
- Reduced cost of deposits by 27 basis;
- Unexpected loan payoffs impacted net income by $466,000 ;
- One new Commercial Banker was added; and
- Solid new customer balance growth.
"During the second quarter, we experienced pressure on earnings related to unexpected loan payoffs of more than $28 million and the acceleration of loan purchase premiums offset by loan prepayment revenue," said Bobby Krimmel , President and CEO of Touchmark National Bank. "The cost of deposits was reduced during the quarter by 27 basis points and core deposit growth was used to repay non-core deposits at higher interest rates. We anticipate new loan growth to continue building momentum throughout the year and the net loan growth pace to turn positive during the first quarter of 2026."
Krimmel continued, "A solid level of new customer balance growth within our primary service area was recorded during the quarter with loans totaling $4.4 million and deposits totaling $13.1 million . Additionally, our active loan pipeline improved to $11.3 million in new opportunities for the third quarter. During the second quarter, we hired two local bankers to help us grow our technology capabilities and to manage our compliance risk and anticipate adding additional revenue and credit administration support during the third quarter. Finally, we continue to make progress on the Formal Agreement with the OCC and are committed to addressing all regulatory concerns."
Second Quarter 2025 Results of Operations
- Net income decreased 66% to $370,000 for the second quarter of 2025 compared to the same period for 2024 and decreased 50% from the sequential quarter driven by lower loan balances and $1.1 million in loan purchase premium write-offs offset in part by early loan prepayment revenue of $466,000 and lower deposit cost of $348,000 ;
- Net interest income decreased 33% to $1.9 million for the second quarter of 2025 compared to the same period for 2024 and decreased by $1.0 million , or 35%, from the sequential quarter driven by $1.1 million in loan purchase premium write-offs during the second quarter of 2025 and lower loan interest income of $299,000 offset by reduced deposit cost of $348,000 ;
- Non-interest income decreased 49% to $604,000 for the second quarter of 2025 compared to the same period for 2024 but increased by $442,000 , or 273%, from the sequential quarter driven by $466,000 of early loan prepayment revenue during the second quarter of 2025; and
- Non-interest expense decreased 22% to $1.9 million compared to the same period for 2024 but increased by $15,000 from the sequential quarter.
Balance Sheet and Capital
- Total loans declined by $78 million , or 19%, to $332 million during the second quarter of 2025 compared to the same period in 2024 and decreased by $31 million , or 8%, from the sequential quarter driven by the unexpected loan payoffs from 12 loan relationships totaling $28.1 million , normal amortization of the loan portfolio of $6.9 million partially offset by new loan growth of $4.5 million ;
- Total deposits declined by $51 million , or 13%, to $348 million during the second quarter of 2025 compared to the same period in 2024 and decreased by $6 million , or 2%, from the sequential quarter driven by a reduction in non-core deposits of $7.0 million and lower retail time deposits of $12.0 million offset by growth in checking and money market balances of $13.9 million . New customer balance growth during the second quarter of 2025 was $13.1 million ; and
- As of June 30, 2025 , book value per share decreased 1% to $16.22 compared to the same period in 2024 but increased by $0.08 compared to the sequential quarter.
Asset Quality
- Nonperforming assets, net of government guarantees, for the second quarter of 2025 decreased to $7.4 million , or 1.74% of total assets, compared to $13.5 million , or 2.80% of total assets, for the same period in 2024 and declined by $131,000 compared to the sequential quarter driven by the resolution of two nonperforming loans at no loss;
- Net recoveries to average loans improved to 0.01% for the second quarter of 2025 compared to 0.01% for the same period in 2024 and net charge-offs of 0.60% for the sequential quarter; and
- Allowance for credit losses represented 0.68% of total loans outstanding as of the second quarter of 2025, down from 1.18% for the same period in 2024 but up from 0.58% 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 Cobb , Dekalb , Forsyth , Gwinnett , and North Fulton counties. As of June 30, 2025 , Touchmark reported total assets of $426 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) | ||||||||
June 30, | December 31, | |||||||
(dollars in thousands, except per share data) | 2025 | 2024 (1) | ||||||
ASSETS | Cash and due from banks | $ | 704 | $ | 1,184 | |||
Interest-bearing deposits | 65,967 | 41,408 | ||||||
Federal funds sold | 5,175 | 5,175 | ||||||
Total cash and cash equivalents | 71,846 | 47,767 | ||||||
Securities: | ||||||||
Available-for-sale | 9,475 | 10,019 | ||||||
Equity securities | 1,598 | 1,654 | ||||||
Loans, net of deferred fees | 332,335 | 379,419 | ||||||
Allowance for credit losses | (2,249) | (2,358) | ||||||
Net loans | 330,086 | 377,061 | ||||||
Bank premises and equipment, net | 1,247 | 1,217 | ||||||
Other Real Estate | 6,888 | 6,888 | ||||||
Deferred tax asset | 1,088 | 1,112 | ||||||
Other assets | 3,779 | 4,573 | ||||||
TOTAL ASSETS | $ | 426,007 | $ | 450,291 | ||||
LIABILITIES | Deposits: | |||||||
Noninterest-bearing | $ | 17,753 | $ | 16,957 | ||||
Interest-bearing | 330,311 | 352,590 | ||||||
Total deposits | 348,064 | 369,547 | ||||||
Accounts payable and accrued liabilities | 5,350 | 9,331 | ||||||
TOTAL LIABILITIES | 353,414 | 378,878 | ||||||
SHAREHOLDERS' | Common stock - $0.01 par value per share, 50,000,000 shares | |||||||
EQUITY | authorized; 4,475,891 shares issued and outstanding as of | |||||||
the periods presented | 45 | 45 | ||||||
Additional paid-in capital | 46,885 | 46,881 | ||||||
Retained earnings | 26,370 | 25,266 | ||||||
Accumulated other comprehensive loss | (707) | (779) | ||||||
TOTAL SHAREHOLDERS' EQUITY | 72,593 | 71,413 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 426,007 | $ | 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 June 30, | Six Months Ended June 30, | |||||||||||
(dollars in thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | ||||||||
INTEREST AND | Interest and fees on loans | $ | 4,673 | $ | 7,058 | $ | 10,876 | $ | 14,962 | |||
DIVIDEND | Income on investment securities | |||||||||||
INCOME | Taxable interest | 685 | 111 | 1,220 | 229 | |||||||
Interest from federal funds sold and other | 57 | 663 | 113 | 1,462 | ||||||||
Total interest income | 5,415 | 7,832 | 12,209 | 16,653 | ||||||||
INTEREST | Interest on deposits | 3,507 | 4,885 | 7,363 | 10,274 | |||||||
EXPENSE | Interest on borrowings | - | 94 | - | 94 | |||||||
Total interest expense | 3,507 | 4,979 | 7,363 | 10,368 | ||||||||
Net interest income | 1,908 | 2,853 | 4,846 | 6,285 | ||||||||
Provision for credit losses | 150 | 186 | 445 | 186 | ||||||||
Net interest income after provision | 1,758 | 2,667 | 4,401 | 6,099 | ||||||||
NONINTEREST | ||||||||||||
INCOME | Service fees on deposit accounts | 2 | 5 | 3 | 9 | |||||||
Loan servicing fees | 130 | 134 | 240 | 258 | ||||||||
Other noninterest income | 472 | 1050 | 524 | 1,440 | ||||||||
Total noninterest income | 604 | 1,189 | 767 | 1,707 | ||||||||
NONINTEREST | Salaries and employee benefits | 1,028 | 1,056 | 2,011 | 2,112 | |||||||
EXPENSE | Net occupancy expense | 50 | 66 | 118 | 135 | |||||||
Foreclosed Real Estate Expenses | 79 | 249 | 132 | 491 | ||||||||
Data processing expense | 91 | 86 | 185 | 171 | ||||||||
Referral Fees for Gov't Guaranteed Loans | 5 | 99 | 32 | 99 | ||||||||
Loan Collection Expense | 59 | 100 | 64 | 265 | ||||||||
Audits and exams expense | 45 | 42 | 90 | 84 | ||||||||
Board Expenses | 85 | 75 | 258 | 137 | ||||||||
Supervisory Assessments | 95 | 230 | 188 | 376 | ||||||||
Other noninterest expense | 314 | 389 | 609 | 592 | ||||||||
Total noninterest expense | 1,851 | 2,392 | 3,687 | 4,462 | ||||||||
Income before provision for income taxes | 511 | 1,464 | 1,481 | 3,344 | ||||||||
Provision for income taxes | 141 | 363 | 377 | 823 | ||||||||
Net income | $ | 370 | $ | 1,101 | $ | 1,104 | $ | 2,521 | ||||
Weighted average shares outstanding - basic | 4,475,891 | 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 | $ | 0.08 | $ | 0.25 | $ | 0.25 | $ | 0.56 | ||||
Diluted earnings per share | $ | 0.08 | $ | 0.24 | $ | 0.24 | $ | 0.55 |
TOUCHMARK BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||||||
For the Three Months Ended | ||||||||||||||
(dollars in thousands, except per share data) | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||
Results of Operations: | ||||||||||||||
Interest income | $ | 5,415 | $ | 6,793 | $ | 7,301 | $ | 7,873 | $ | 7,832 | ||||
Interest expense | 3,507 | 3,855 | 4,285 | 4,697 | 4,979 | |||||||||
Net interest income | 1,908 | 2,938 | 3,016 | 3,176 | 2,853 | |||||||||
Provision for credit losses | 150 | 295 | 2,240 | 150 | 186 | |||||||||
Non-interest income | 604 | 162 | 4 | 884 | 1,189 | |||||||||
Non-interest expense | 1,851 | 1,836 | 1,256 | 1,908 | 2,392 | |||||||||
Income (loss) before income taxes | 511 | 969 | (476) | 2,002 | 1,464 | |||||||||
Income taxes (benefit) | 141 | 236 | (184) | 491 | 363 | |||||||||
Net income (loss) | $ | 370 | $ | 733 | $ | (292) | $ | 1,511 | $ | 1,101 | ||||
Per Share Data: | ||||||||||||||
Basic earnings per share | $ | 0.08 | $ | 0.16 | $ | (0.07) | $ | 0.34 | $ | 0.25 | ||||
Diluted earnings per share | $ | 0.08 | $ | 0.16 | $ | (0.07) | $ | 0.33 | $ | 0.24 | ||||
Book value per share | $ | 16.22 | $ | 16.14 | $ | 15.95 | $ | 16.72 | $ | 16.32 | ||||
Weighted average shares outstanding per | 4,475,891 | 4,475,891 | 4,475,891 | 4,475,891 | 4,475,891 | |||||||||
Weighted average shares outstanding per | 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 | $ | 332,335 | $ | 362,836 | $ | 379,419 | $ | 389,679 | $ | 410,711 | ||||
Allowance for credit losses | $ | (2,249) | $ | (2,092) | $ | (2,358) | $ | (4,673) | $ | (4,858) | ||||
Total assets | $ | 426,007 | $ | 432,421 | $ | 450,291 | $ | 464,973 | $ | 480,229 | ||||
Total deposits | $ | 348,064 | $ | 354,099 | $ | 369,547 | $ | 382,641 | $ | 398,841 | ||||
Net interest margin | 1.83 % | 2.71 % | 2.72 % | 2.75 % | 2.35 % | |||||||||
Efficiency | 70.65 % | 58.68 % | 44.81 % | 46.56 % | 57.36 % | |||||||||
Asset Quality Data and Ratios: | ||||||||||||||
Total nonperforming assets | $ | 22,409 | $ | 23,042 | $ | 23,039 | $ | 27,735 | $ | 30,089 | ||||
Total nonperforming assets, net of | 7,422 | 7,553 | 7,552 | 11,059 | 13,450 | |||||||||
Nonperforming assets to total assets | 5.26 % | 5.33 % | 5.13 % | 5.95 % | 6.26 % | |||||||||
Nonperforming assets to total assets, net of | 1.74 % | 1.75 % | 1.68 % | 2.37 % | 2.80 % | |||||||||
Allowance for credit losses to total loans | 0.68 % | 0.58 % | 0.62 % | 1.20 % | 1.18 % | |||||||||
Net (recoveries) charge-offs to average loans | (0.01 %) | 0.60 % | 4.74 % | 0.34 % | (0.01 %) | |||||||||
SOURCE Touchmark Bancshares, Inc.
FAQ**
What strategies is Touchmark Bancshares Inc (TMAK) implementing to mitigate the impact of unexpected loan payoffs on net income, especially given the $466,000 decrease reported for the second quarter?
How does Touchmark Bancshares Inc (TMAK) plan to leverage the recent hiring of commercial bankers to enhance customer balance growth, particularly with the reported $13.1 million increase in deposits this quarter?
Given the 66% decrease in net income for Touchmark Bancshares Inc (TMAK) in Q2 2025, what specific measures will the company take to stabilize earnings moving forward into the second half of the year?
Can Touchmark Bancshares Inc (TMAK) provide an update on progress regarding the Formal Agreement with the OCC and how it plans to address the regulatory concerns discussed in its second-quarter results?
**MWN-AI FAQ is based on asking OpenAI questions about Touchmark Bancshares Inc (OTC: TMAK).
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