TOUCHMARK BANCSHARES, INC. REPORTS FIRST QUARTER RESULTS

Rhea-AI Summary

Touchmark Bancshares (OTC Pink: TMAK) reported its Q1 2025 financial results, marking a transition period with significant leadership changes and strategic shifts. Net income decreased 48.4% to $733,000 compared to Q1 2024's $1.4 million. The company appointed Bobby Krimmel as the new President and CEO, succeeding Dr. J.J. Shah, and implemented a new strategy focusing on local market growth within 25 miles of their Alpharetta headquarters.

Key financial metrics showed net interest income declining 14.4% to $2.9 million, total loans decreasing by $16.3 million (4.3%), and efficiency ratio increasing to 59.22%. The bank strengthened its team by adding new bankers, including an SBA specialist, to boost loan portfolio growth. Asset quality improved with nonperforming assets decreasing from $13.4 million in Q1 2024 to $7.6 million, and net charge-offs declining to 0.60% from 4.74% in Q4 2024.

Positive

• Asset quality improved with nonperforming assets decreasing by $5.8 million year-over-year
• Net charge-offs significantly improved to 0.60% from 4.74% in previous quarter
• Book value per share increased to $16.14 from $16.06
• Strategic hiring of new bankers to boost loan portfolio growth

Negative

• Net income declined 48.4% year-over-year to $733,000
• Net interest income fell 14.4% to $2.9 million
• Total loans decreased by $16.3 million (4.3%) during Q1
• Efficiency ratio worsened to 59.22% from 52.42% year-over-year

ALPHARETTA, Ga., May 12, 2025 /PRNewswire/ -- Touchmark Bancshares, Inc. (OTC Pink: TMAK), the holding company for Touchmark National Bank, today reported financial results for the first quarter of 2025.

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

• The company hired Bobby Krimmel to succeed Dr. J.J. Shah as the President and CEO of Touchmark National Bank;
• One new SBA Banker was added; and
• New company strategy to grow local market customer relationships has been established.

"Our first quarter results reflected the beginning of a transition period for Touchmark to grow its balance sheet with an emphasis on developing local banking relationships in our primary market," said Bobby Krimmel.  "We have defined our primary market as 25 miles from our home office in Alpharetta and are actively pursuing local customer relationships with a healthy pipeline building for both loan and deposit opportunities." 

"The reduction in net income during the first quarter of 2025 was driven by lower loan balances compared to the prior year. We hired two local bankers to help us grow our loan portfolio with one focused on SBA banking relationships and started during the first quarter of 2025 while the second banker was added in April 2025 with a focus on conventional lending opportunities.  The company remains optimistic that our strategy to grow Touchmark with a relationship banking focus will deliver long-term, sustainable performance to our shareholders."

First Quarter 2025 Results of Operations

• Net income decreased 48.4% to $733,000 from $1.4 million for the first quarter of 2024;
• Net interest income fell by 14.4% to $2.9 million from $3.4 million for the first quarter of 2024;
• Total loans declined by $16.3 million, or 4.3%, during the first quarter of 2025;
• Efficiency increased to 59.22% compared to 52.42% from the first quarter of 2024;
• Total noninterest expense decreased by 11.3% to $1.8 million from the first quarter of 2024; and
• Book value per share increased to $16.14 from $16.06 from the first quarter of 2024.

Asset Quality

• Nonperforming assets, net of government guarantees, remained at $7.6 million of total assets for the first quarter of 2025, down from $13.4 million from the first quarter of 2024;
• Net charge-offs to average loans declined to 0.60% for the first quarter of 2025 compared to 4.74% for the fourth quarter of 2024; and
• Allowance for credit losses represented 0.58% of total loans outstanding as of the first quarter of 2025.

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 March 31, 2025, Touchmark reported total assets of $432 million and total shareholders' equity of $72 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)
				March 31,			December 31,
		(dollars in thousands, except per share data)		2025			2024(1)
ASSETS		Cash and due from banks		$	725		$	1,184
		Interest-bearing deposits		40,866			41,408
		Federal funds sold		5,175			5,175
		Total cash and cash equivalents		46,766			47,767
		Securities:
		Available-for-sale		9,957			10,019
		Equity securities		1,598			1,654
		Loans, net of deferred fees		362,836			379,419
		Allowance for credit losses		(2,092)			(2,358)
		Net loans		360,744			377,061
		Bank premises and equipment, net		1,256			1,217
		Other Real Estate		6,888			6,888
		Deferred tax asset		1,079			1,112
		Other assets		4,133			4,573
		TOTAL ASSETS		$	432,421		$	450,291
LIABILITIES		Deposits:
		Noninterest-bearing		$	13,676		$	16,957
		Interest-bearing		340,423			352,590
		Total deposits		354,099			369,547
		Accounts payable and accrued liabilities		6,077			9,331
		TOTAL LIABILITIES		360,176			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		46,881			46,881
		Retained earnings		25,999			25,266
		Accumulated other comprehensive loss		(680)			(779)
		TOTAL SHAREHOLDERS' EQUITY		72,245			71,413
		TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	432,421		$	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 March 31,
	(dollars in thousands, except per share data)	2025			2024
INTEREST AND	Interest and fees on loans	$	6,202		$	7,906
DIVIDEND	Income on investment securities
INCOME	Taxable interest	103			117
	Interest from federal funds sold and other	488			798
	Total interest income	6,793			8,821
INTEREST	Interest on deposits	3,855			5,389
EXPENSE	Interest on borrowings	-			-
	Total interest expense	3,855			5,389
	Net interest income	2,938			3,432
	Provision for credit losses	295			-
	Net interest income after provision	2,643			3,432
NONINTEREST
INCOME	Service fees on deposit accounts	3			4
	Loan servicing fees	110			124
	Other noninterest income	49			391
	Total noninterest income	162			519
NONINTEREST	Salaries and employee benefits	983			1,056
EXPENSE	Net occupancy expense	67			69
	Foreclosed Real Estate Expenses	53			242
	Data processing expense	94			85
	Referral Fees for Gov't Guaranteed Loans	28			0
	Loan Collection Expense	5			165
	Audits and exams expense	45			42
	Board Expenses	173			62
	Supervisory Assessments	93			146
	Other noninterest expense	295			204
	Total noninterest expense	1,836			2,071
	Income before provision for income taxes	969			1,880
	Provision for income taxes	236			460
	Net income available to common shareholders	$	733		$	1,420
	Weighted average shares outstanding - basic	4,475,891			4,475,891
	Weighted average shares outstanding - diluted	4,630,473			4,630,473
	Earnings per share	$	0.16		$	0.32
	Diluted earnings per share	$	0.16		$	0.31

 

TOUCHMARK BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)
	For the Three Months Ended
(dollars in thousands, except per share data)	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Results of Operations:
Interest income	$	6,793		$	7,301		$	7,873		$	7,832		$	8,821
Interest expense	3,855			4,285			4,697			4,979			5,389
Net interest income	2,938			3,016			3,176			2,853			3,432
Provision for credit losses	295			2,240			150			186			-
Non-interest income	162			4			884			1,189			519
Non-interest expense and non-controlling interest – preferred stock of subsidiary	1,836			1,256			1,908			2,392			2,071
Income before income taxes	969			(476)			2,002			1,464			1,880
Income taxes	236			(184)			491			363			460
Net income for common shareholders	$	733		$	(292)		$	1,511		$	1,101		$	1,420
Per Share Data:
Basic earnings per share	$	0.16		$	(0.07)		$	0.34		$	0.25		$	0.32
Diluted earnings per share	$	0.16		$	(0.07)		$	0.33		$	0.24		$	0.31
Book value per share	$	16.14		$	15.95		$	16.72		$	16.32		$	16.06
Weighted average shares outstanding per quarter - basic	4,475,891			4,475,891			4,475,891			4,475,891			4,475,891
Weighted average shares outstanding per quarter - diluted	4,630,473			4,630,473			4,630,473			4,630,473			4,630,473
Financial Condition Data and Ratios:
Loans, net of deferred fees	$	362,836		$	379,419		$	389,679		$	410,711		$	435,918
Allowance for credit losses	$	(2,092)		$	(2,358)		$	(4,673)		$	(4,858)		$	(4,647)
Total assets	$	432,421		$	450,291		$	464,973		$	480,229		$	504,926
Total deposits	$	354,099		$	369,547		$	382,641		$	398,841		$	424,339
Net interest margin	2.71 %			2.72 %			2.75 %			2.35 %			2.65 %
Efficiency	58.68 %			44.81 %			46.56 %			57.36 %			51.99 %
Asset Quality Data and Ratios:
Total nonperforming assets	$	23,042		$	23,039		$	27,735		$	30,089		$	29,971
Total nonperforming assets, net of government guarantees	7,553			7,552			11,059			13,450			13,423
Nonperforming assets to total assets	5.33 %			5.13 %			5.95 %			6.26 %			5.93 %
Nonperforming assets to total assets, net of government guarantees	1.75 %			1.68 %			2.37 %			2.80 %			2.65 %
Allowance for credit losses to total loans	0.58 %			0.62 %			1.20 %			1.18 %			1.07 %
Net charge-offs (recoveries) to average loans (annualized)	0.60 %			4.74 %			0.34 %			(0.01 %)			0.31 %

 

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SOURCE Touchmark Bancshares, Inc.

FAQ

What were TMAK's key financial results for Q1 2025?

In Q1 2025, Touchmark reported net income of $733,000 (down 48.4% YoY), net interest income of $2.9 million (down 14.4% YoY), and a 4.3% decrease in total loans. The efficiency ratio increased to 59.22%.

Who is the new CEO of Touchmark National Bank?

Bobby Krimmel was appointed as the new President and CEO of Touchmark National Bank, succeeding Dr. J.J. Shah.

How did TMAK's asset quality perform in Q1 2025?

Asset quality improved with nonperforming assets at $7.6 million (down from $13.4 million in Q1 2024), net charge-offs decreased to 0.60%, and the allowance for credit losses was 0.58% of total loans.

What is Touchmark's new business strategy?

Touchmark's new strategy focuses on growing local market customer relationships within 25 miles of their Alpharetta headquarters, with emphasis on both loan and deposit opportunities.

How has TMAK's book value per share changed?

Book value per share increased to $16.14 in Q1 2025 from $16.06 in Q1 2024.