TOUCHMARK BANCSHARES, INC. REPORTS FIRST QUARTER RESULTS
Rhea-AI Summary
Touchmark Bancshares (OTCID: TMAK) reported Q1 2026 results: net income fell to $94,000 vs. $733,000 year-over-year; net interest income declined 30% to $2.1M. Total loans were $321M (down 12% YoY) after $11.7M unexpected purchased loan payoffs. The OCC Formal Agreement was terminated Feb 17, 2026, DTC eligibility established, organic loan growth topped $11M, and nonperforming assets fell 10%.
AI-generated analysis. Not financial advice.
Positive
- OCC Formal Agreement terminated on Feb 17, 2026
- Established DTC eligibility and electronic trading for stock
- Organic loan growth of $11.0M in Q1 2026
- Nonperforming assets down 10% year-over-year
Negative
- Net income declined to $94,000 (down from $733,000)
- Net interest income decreased 30% to $2.1M
- Total loans declined 12% to $321M YoY
- Loan purchase payoffs of $11.7M reduced loan balances
News Market Reaction – TMAK
On the day this news was published, TMAK gained 2.16%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Organic Loan Growth Accelerates
Key highlights of Touchmark Bancshares' results for the quarter ended March 31, 2026, include:
- The Formal Agreement by and between the OCC and Touchmark National Bank was terminated on February 17, 2026;
- Organic loan growth topped
$11 million - Nonperforming assets dropped
10% ; and - Established DTC eligibility and electronic trading for the company's stock.
"The termination of the Bank's Formal Agreement with the OCC during the first quarter will allow Touchmark to accelerate its full relationship banking growth strategy targeted at small and medium sized businesses. During the quarter, we experienced organic loan growth that topped
Krimmel continued, "We have completed the restructure of Touchmark's balance sheet by reducing retail CD's by
First Quarter 2026 Results of Operations
- Net income decreased to
$94,000 $733,000 79% from the sequential quarter, driven by lower net interest income of$320,000 - Net interest income decreased
30% to$2.1 million $320,000 13% , from the sequential quarter driven by the repricing of variable loans tied to Prime and higher loan purchase premium amortization expense; - Non-interest income decreased
29% to$115,000 $42,000 24% , from the sequential quarter; and - Non-interest expense increased
3% to$1.9 million $50,000 3% , from the sequential quarter driven by lower salaries and employee benefits and legal expense.
Balance Sheet and Capital
- Total loans declined by
$42 million 12% , to$321 million $4.0 million 1% , from the sequential quarter driven by normal amortization of the loan portfolio of$4.7 million $11.7 million $11.0 million - Total deposits decreased by
$21 million 6% , to$333 million $69.5 million $12.8 million $6.7 million $64.0 million $4.0 million $8.7 million $40.4 million $2.1 million $100,000 $33.9 million - As of March 31, 2026, book value per share decreased to
$15.85 $0.01
Asset Quality
- Nonperforming assets, net of government guarantees, for the first quarter of 2026 decreased to
$6.5 million 1.58% of total assets, compared to$7.6 million 1.75% of total assets, for the same period in 2025 and declined by$38,000 - Net charge-offs to average loans decreased to
0.32% for the first quarter of 2026 compared to net charge-offs of0.60% for the same period in 2025 driven by the resolution of problem assets, compared with net charge-offs of0.01% for the sequential quarter; and - Allowance for credit losses represented
0.76% of total loans outstanding as of the first quarter of 2026, up from0.58% for the same period in 2025 but down from0.78% 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
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 | ||||||||
(unaudited) | ||||||||
March 31, | December 31, | |||||||
(dollars in thousands, except per share data) | 2026 | 2025(1) | ||||||
ASSETS | Cash and due from banks | $ | 444 | $ | 607 | |||
Interest-bearing deposits | 61,404 | 65,041 | ||||||
Federal funds sold | 5,175 | 5,175 | ||||||
Total cash and cash equivalents | 67,023 | 70,823 | ||||||
Available-for-sale securities | 8,367 | 10,806 | ||||||
Equity securities | 1,577 | 1,598 | ||||||
Loans, net of deferred fees and purchased premiums | 320,708 | 324,725 | ||||||
Allowance for credit losses | (2,436) | (2,543) | ||||||
Net loans | 318,272 | 322,182 | ||||||
Bank premises and equipment, net | 1,450 | 1,490 | ||||||
Other Real Estate | 5,826 | 5,826 | ||||||
Deferred tax asset | 1,370 | 1,351 | ||||||
Other assets | 6,316 | 3,561 | ||||||
TOTAL ASSETS | $ | 410,201 | $ | 417,637 | ||||
LIABILITIES | Deposits: | |||||||
Noninterest-bearing | $ | 17,579 | $ | 17,722 | ||||
Interest-bearing | 315,360 | 320,972 | ||||||
Total deposits | 332,939 | 338,694 | ||||||
Accounts payable and accrued liabilities | 6,309 | 8,027 | ||||||
TOTAL LIABILITIES | 339,248 | 346,721 | ||||||
SHAREHOLDERS' | Common stock - | |||||||
EQUITY | authorized; 4,476,890 shares issued and outstanding as of | |||||||
the periods presented | 45 | 45 | ||||||
Additional paid-in capital | 46,895 | 46,895 | ||||||
Retained earnings | 24,617 | 24,523 | ||||||
Accumulated other comprehensive loss | (604) | (547) | ||||||
TOTAL SHAREHOLDERS' EQUITY | 70,953 | 70,916 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 410,201 | $ | 417,637 | ||||
(1) Derived from audited financial statements as of December 31, 2025. |
TOUCHMARK BANCSHARES, INC. AND SUBSIDIARY | ||||||
Three Months Ended | ||||||
(dollars in thousands, except per share data) | 2026 | 2025 | ||||
INTEREST | Interest and fees on loans | $ | 4,209 | $ | 6,202 | |
DIVIDEND | Income on investment securities | |||||
INCOME | Taxable interest | 102 | 103 | |||
Interest from federal funds sold and other | 560 | 488 | ||||
Total interest income | 4,871 | 6,793 | ||||
INTEREST | Interest on deposits | 2,808 | 3,855 | |||
EXPENSE | Interest on borrowings | - | - | |||
Total interest expense | 2,808 | 3,855 | ||||
Net interest income | 2,063 | 2,938 | ||||
Provision for credit losses | 150 | 295 | ||||
Net interest income after provision | 1,913 | 2,643 | ||||
NONINTEREST | ||||||
INCOME | Service fees on deposit accounts | 2 | 3 | |||
Loan servicing fees | 103 | 110 | ||||
Other noninterest income | 10 | 49 | ||||
Total noninterest income | 115 | 162 | ||||
NONINTEREST | Salaries and employee benefits | 984 | 983 | |||
EXPENSE | Net occupancy expense | 70 | 67 | |||
Foreclosed real estate expenses | 171 | 53 | ||||
Data processing expense | 98 | 94 | ||||
Loan collection expense | 51 | 5 | ||||
Audits and exams expense | 45 | 45 | ||||
Board expenses | 109 | 173 | ||||
Supervisory assessments | 92 | 93 | ||||
Other noninterest expense | 272 | 323 | ||||
Total noninterest expense | 1,892 | 1,836 | ||||
Income before provision for income taxes | 136 | 969 | ||||
Provision for income taxes | 42 | 236 | ||||
Net income | $ | 94 | $ | 733 | ||
Weighted average shares outstanding - basic | 4,476,891 | 4,475,891 | ||||
Weighted average shares outstanding - diluted | 4,583,737 | 4,583,737 | ||||
Earnings per share | $ | 0.02 | $ | 0.16 | ||
Diluted earnings per share | $ | 0.02 | $ | 0.16 | ||
TOUCHMARK BANCSHARES, INC. AND SUBSIDIARY | ||||||||||||||
For the Three Months Ended | ||||||||||||||
(dollars in thousands, except per share data) | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||
Results of Operations: | ||||||||||||||
Interest income | $ | 4,871 | $ | 5,473 | $ | 6,068 | $ | 5,415 | $ | 6,793 | ||||
Interest expense | 2,808 | 3,090 | 3,374 | 3,507 | 3,855 | |||||||||
Net interest income | 2,063 | 2,383 | 2,694 | 1,908 | 2,938 | |||||||||
Provision for credit losses | 150 | 150 | 150 | 150 | 295 | |||||||||
Non-interest income | 115 | 152 | 110 | 604 | 162 | |||||||||
Non-interest expense | 1,892 | 1,942 | 1,840 | 1,851 | 1,836 | |||||||||
Income (loss) before income taxes | 136 | 443 | 814 | 511 | 969 | |||||||||
Income taxes (benefit) | 42 | 4 | 205 | 141 | 236 | |||||||||
Net income (loss) | $ | 94 | $ | 439 | $ | 609 | $ | 370 | $ | 733 | ||||
Per Share Data: | ||||||||||||||
Basic earnings per share | $ | 0.02 | $ | 0.10 | $ | 0.14 | $ | 0.08 | $ | 0.16 | ||||
Diluted earnings per share | $ | 0.02 | $ | 0.10 | $ | 0.13 | $ | 0.08 | $ | 0.16 | ||||
Book value per share | $ | 15.85 | $ | 15.84 | $ | 16.39 | $ | 16.22 | $ | 16.14 | ||||
Weighted average shares outstanding per | 4,476,891 | 4,476,630 | 4,475,892 | 4,475,891 | 4,475,891 | |||||||||
Weighted average shares outstanding per | 4,583,737 | 4,583,070 | 4,583,737 | 4,583,737 | 4,583,737 | |||||||||
Financial Condition Data and Ratios: | ||||||||||||||
Loans, net of deferred fees | $ | 320,708 | $ | 324,725 | $ | 329,437 | $ | 332,335 | $ | 362,836 | ||||
Allowance for credit losses | $ | (2,436) | $ | (2,543) | $ | (2,398) | $ | (2,249) | $ | (2,092) | ||||
Total assets | $ | 410,201 | $ | 418,375 | $ | 417,756 | $ | 426,007 | $ | 432,421 | ||||
Total deposits | $ | 332,939 | $ | 338,694 | $ | 339,032 | $ | 348,064 | $ | 354,099 | ||||
Net interest margin | 1.94 % | 2.32 % | 2.58 % | 1.83 % | 2.71 % | |||||||||
Efficiency | 85.05 % | 75.08 % | 64.26 % | 70.65 % | 58.68 % | |||||||||
Asset Quality Data and Ratios: | ||||||||||||||
Total nonperforming assets | $ | 22,590 | $ | 25,080 | $ | 22,323 | $ | 22,409 | $ | 23,042 | ||||
Total nonperforming assets, net of | 6,483 | 6,521 | 6,478 | 7,422 | 7,553 | |||||||||
Nonperforming assets to total assets | 5.51 % | 5.99 % | 5.34 % | 5.26 % | 5.33 % | |||||||||
Nonperforming assets to total assets, net of | 1.58 % | 1.56 % | 1.55 % | 1.74 % | 1.75 % | |||||||||
Allowance for credit losses to total loans | 0.76 % | 0.78 % | 0.73 % | 0.68 % | 0.58 % | |||||||||
Net (recoveries) charge-offs to average loans | 0.32 % | 0.01 % | (0.00 %) | (0.01 %) | 0.60 % | |||||||||
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SOURCE Touchmark Bancshares, Inc.