TOUCHMARK BANCSHARES, INC. REPORTS SECOND QUARTER RESULTS
Rhea-AI Summary
Touchmark Bancshares (OTC Pink: TMAK) reported challenging second quarter 2025 results, with net income declining 66% year-over-year to $370,000. The bank faced significant headwinds from unexpected loan payoffs exceeding $28 million and loan purchase premium write-offs of $1.1 million.
Key metrics show total loans decreased 19% YoY to $332 million, while deposits fell 13% to $348 million. The bank successfully reduced its cost of deposits by 27 basis points and achieved new customer balance growth of $13.1 million. Asset quality improved with nonperforming assets decreasing to $7.4 million (1.74% of total assets) from $13.5 million year-over-year.
Positive
- Cost of deposits reduced by 27 basis points
- New customer balance growth of $13.1 million in Q2 2025
- Active loan pipeline of $11.3 million for Q3
- Nonperforming assets decreased to 1.74% of total assets from 2.80% YoY
- Net recoveries improved to 0.01% compared to net charge-offs of 0.60% in previous quarter
Negative
- Net income decreased 66% YoY to $370,000
- Total loans declined 19% YoY to $332 million
- Total deposits fell 13% YoY to $348 million
- Net interest income decreased 33% YoY to $1.9 million
- Book value per share decreased 1% YoY to $16.22
News Market Reaction 1 Alert
On the day this news was published, TMAK declined NaN%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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
Krimmel continued, "A solid level of new customer balance growth within our primary service area was recorded during the quarter with loans totaling
Second Quarter 2025 Results of Operations
- Net income decreased
66% to$370,000 50% from the sequential quarter driven by lower loan balances and$1.1 million $466,000 $348,000 - Net interest income decreased
33% to$1.9 million $1.0 million 35% , from the sequential quarter driven by$1.1 million $299,000 $348,000 - Non-interest income decreased
49% to$604,000 $442,000 273% , from the sequential quarter driven by$466,000 - Non-interest expense decreased
22% to$1.9 million $15,000
Balance Sheet and Capital
- Total loans declined by
$78 million 19% , to$332 million $31 million 8% , from the sequential quarter driven by the unexpected loan payoffs from 12 loan relationships totaling$28.1 million $6.9 million $4.5 million - Total deposits declined by
$51 million 13% , to$348 million $6 million 2% , from the sequential quarter driven by a reduction in non-core deposits of$7.0 million $12.0 million $13.9 million $13.1 million - As of June 30, 2025, book value per share decreased
1% to$16.22 $0.08
Asset Quality
- Nonperforming assets, net of government guarantees, for the second quarter of 2025 decreased to
$7.4 million 1.74% of total assets, compared to$13.5 million 2.80% of total assets, for the same period in 2024 and declined by$131,000 - Net recoveries to average loans improved to
0.01% for the second quarter of 2025 compared to0.01% for the same period in 2024 and net charge-offs of0.60% for the sequential quarter; and - Allowance for credit losses represented
0.68% of total loans outstanding as of the second quarter of 2025, down from1.18% for the same period in 2024 but up from0.58% 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
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 - | |||||||
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 %) | |||||||||
View original content to download multimedia:https://www.prnewswire.com/news-releases/touchmark-bancshares-inc-reports-second-quarter-results-302523160.html
SOURCE Touchmark Bancshares, Inc.
FAQ
What caused TMAK's net income to decline in Q2 2025?
How much did Touchmark Bancshares reduce its deposit costs in Q2 2025?
What is TMAK's loan pipeline outlook for Q3 2025?
How did Touchmark's asset quality perform in Q2 2025?
What is TMAK's current allowance for credit losses ratio?
