TOUCHMARK BANCSHARES, INC. REPORTS THIRD QUARTER 2026 RESULTS

Quarterly profit improved as deposits and loans contracted, while nine-month earnings remained below the prior year.

Rhea-AI Summary

Touchmark Bancshares (TMAK) reported third-quarter 2026 net income of $849,000, up from the same quarter last year as interest margins improved. Diluted earnings per share rose to $0.19 from $0.13. Net interest income increased 4.2% year over year to $2.808 million, and net interest margin reached 2.81%, versus 2.58% a year earlier. Noninterest expense fell 3.0%, while the efficiency ratio improved to 60.64%.

Loans declined $10.0 million sequentially to $307.4 million, and deposits fell $12.6 million to $325.5 million. Nonperforming assets decreased 15% sequentially, although net charge-offs were 0.26% of average loans. Nine-month net income was $1.695 million versus $1.712 million a year earlier. The company repurchased 15,000 shares at an average $10.51, a 35.0% discount to September 30 book value. Touchmark expects organic loan growth to resume in the fourth quarter.

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Positive

• Moderate pointThird-quarter net income rose 39% year over year to $849,000, versus $752,000 in the prior quarter.
• Moderate pointNet interest income rose 4.2% year over year to $2.808 million and 4.9% sequentially.
• Moderate pointNet interest margin expanded to 2.81%, versus 2.61% sequentially and 2.58% a year earlier.
• Moderate pointQuarterly credit-loss provision was zero, versus $170,000 sequentially and $150,000 a year earlier.
• Moderate pointNoninterest expense fell 3.0% year over year to $1.786 million and $44,000 sequentially.
• Moderate pointYear-to-date loan production totaled $26.5 million, versus $11.5 million in the same 2025 period.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter organic loan growth is expected to resume at a pace similar to earlier this year.
• Moderate pointNonperforming assets decreased 15% sequentially and 16% year over year to $18.708 million.

11 minor points

• Minor pointDiluted EPS increased to $0.19 from $0.13 a year earlier and $0.16 sequentially.
• Minor pointLoan yield excluding premium amortization increased to 7.21% from 6.84% in the prior quarter.
• Minor pointCost of funds improved to 3.05% from 3.08% sequentially.
• Minor pointEfficiency ratio improved to 60.64%, versus 64.00% sequentially and 64.26% a year earlier.
• Minor pointReturn on average assets reached 0.83%, versus 0.73% sequentially and 0.58% a year earlier.
• Minor pointReturn on average equity reached 4.74%, versus 4.22% sequentially and 3.34% a year earlier.
• Minor pointBank capital remained well-capitalized, with a 13.39% leverage ratio and 45.92% tier 1 risk-based ratio.
• Minor point15,000 shares repurchased at an average $10.51, a 35.0% discount to September 30 book value.
• Minor point170,000 shares remain authorized for repurchase under the program scheduled to expire May 26, 2027.
• Minor pointNine-month noninterest income increased to $546,000 from $367,000 a year earlier.
• Minor pointNine-month credit-loss provision decreased to $320,000 from $595,000 a year earlier.

Negative

• Moderate pointNine-month net interest income fell to $7.546 million from $8.050 million a year earlier.
• Moderate pointTotal loans declined $10.0 million, or 3.2%, sequentially to $307.4 million.
• Moderate pointTotal deposits decreased $12.6 million, or 3.7%, sequentially to $325.5 million.
• Moderate pointNet charge-offs were 0.26% of average loans, versus 0.05% net recoveries sequentially and no year-earlier charge-offs.
• Minor pointNine-month net income declined to $1.695 million from $1.712 million; diluted EPS remained $0.37.

5 minor points

• Minor pointThird-quarter lending slowed to $2.7 million in new loan commitments.
• Minor pointTotal assets decreased $12.5 million, or 3.0%, sequentially to $403.6 million.
• Minor pointNoninterest income fell to $102,000 from $110,000 a year earlier and $329,000 sequentially.
• Minor pointGovernment-guarantee-adjusted nonperforming assets fell to $6.293 million, but their asset ratio rose sequentially to 1.56%.
• Minor pointBook value per share was $16.16, above $16.03 sequentially but below $16.39 a year earlier.

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Net Income Jumps 39%

ATLANTA, Oct. 26, 2026 /PRNewswire/ -- Touchmark Bancshares, Inc. (OTCID: TMAK), the holding company for Touchmark National Bank, today reported net income of $849,000, or $0.19 per diluted share, for the third quarter of 2026, compared with $609,000, or $0.13 per diluted share, for the third quarter of 2025. For the nine months ended September 30, 2026, net income was $1.70 million, or $0.37 per diluted share, compared with $1.71 million, or $0.37 per diluted share, for the same period in 2025.

Quarterly Highlights

• Net income increased 39% from the same period last year;
• Net interest margin expanded to 2.81%;
• Efficiency dropped to 60.64%;
• Nonperforming assets decreased 15% from the prior quarter; and
• The Company repurchased 15,000 shares of common stock in the open market.

"We made significant progress during the third quarter optimizing our balance sheet to support growth in net income, net interest margin and efficiency," said Bobby Krimmel, President and Chief Executive Officer of Touchmark Bancshares, Inc.  "Net income reached the highest level in two years while efficiency improved to an 18-month low. We experienced a slowdown in lending activity during the quarter with $2.7 million in new loan commitments as many of the companies we were working with turned cautious because of higher interest rates and inflation.  However, we anticipate the slowdown to be temporary with a return to organic loan growth during the fourth quarter at a similar pace experienced earlier this year." 

Krimmel continued, "During the quarter we welcomed 28 new loan and deposit customers to Touchmark and continued to experience growth in our relationship banking model. We made significant progress in resolving our nonperforming assets which dropped by $3.3 million to a three-year low. Interest expense declined for the 10^th consecutive quarter as we continued our strategy to exit non-relationship deposit customers. We replaced our Company's website with a new modern look with more information about Touchmark National Bank and changed the website domain to TouchmarkBank.com to make it easier for new prospects to find us.  The Company continued its stock repurchase program during the quarter, buying 15,000 shares in the open market at a 35% discount to book value." 

Third Quarter 2026 Results of Operations

• Net income increased 39% to $849,000 for the third quarter of 2026, compared with $609,000 for the third quarter of 2025, and increased from $752,000 in the prior quarter. The sequential-quarter increase was driven primarily by a $132,000 increase in net interest income, a $170,000 decrease in the provision for credit losses, and a $44,000 decrease in noninterest expense. These improvements were partially offset by a $219,000 gain recognized in the prior quarter from the recovery of a loan guaranty.

• Net interest income increased 4.2% to $2.8 million for the third quarter of 2026, compared with $2.7 million for the third quarter of 2025, and increased $132,000, or 4.9%, from the prior quarter. The sequential-quarter increase reflected continued margin expansion from funding-cost management and the addition of higher-yielding assets. It also included $203,000 of interest income recognized on a government-guaranteed nonperforming loan, partially offset by an $89,000 prepayment penalty recognized in the second quarter of 2026.

• Year-to-date loan production totaled $26.5 million, compared with $11.5 million for the same period in 2025. Excluding loan premium amortization, the yield on loans increased 37 basis points to 7.21% from 6.84% in the prior quarter, while the cost of funds improved by 3 basis points to 3.05% from 3.08%.  These factors contributed to an increase in the Bank's net interest margin to 2.81%, its highest level since 2024.

• Noninterest income was $102,000 for the third quarter of 2026, compared with $110,000 for the third quarter of 2025 and $329,000 in the prior quarter.  The higher level in the prior quarter primarily reflected a $219,000 gain from the recovery of a government loan guaranty.

• Noninterest expense decreased 3.0% to $1.8 million for the third quarter of 2026, compared with the third quarter of 2025, and decreased $44,000, or 2.4%, from the prior quarter.  The decrease primarily reflected lower compensation and employee benefit expenses, partially offset by higher other real estate and loan collection expenses.  The efficiency ratio improved to 60.64% for the quarter, compared with 64.26% in the third quarter of 2025 and 64.00% from the prior quarter.

Balance Sheet and Capital

• Total assets decreased $12.5 million, or 3.0%, during the third quarter of 2026 to $403.6 million compared to the sequential quarter. The decrease primarily reflected a reduction of $12.6 million in net deposit outflows while loan balances declined $10.0 million and the securities portfolio increased $8.3 million.

• Total loans decreased $10.0 million, or 3.2%, to $307.4 million during the third quarter of 2026 compared to the sequential quarter.  The decrease from the prior quarter reflected $12.4 million in loan payoffs and principal repayments along with $1.3 million of loan premium amortization on government-guaranteed purchased loans, partially offset by $3.7 million of new loan growth.

• Total deposits decreased $12.6 million, or 3.7%, to $325.5 million during the third quarter of 2026 compared to the sequential quarter. The decrease from the prior quarter primarily reflected declines of $14.3 million in time deposits and $1.2 million in demand deposits, partially offset by $2.9 million growth in money market deposits.

• Book value per share was $16.16 at September 30, 2026, compared with $16.39 at September 30, 2025 and $16.03 at June 30, 2026; and

• The Bank remained well-capitalized as of September 30, 2026, with a leverage ratio of 13.39% and tier 1 risk-based capital ratio of 45.92%.

Asset Quality

• Total nonperforming assets decreased $3.3 million, or 15%, from the prior quarter and $3.6 million, or 16%, from the third quarter of 2025. Nonperforming assets, net of government guarantees, were $6.3 million, or 1.56% of total assets, at September 30, 2026, compared with $6.4 million, or 1.54% of total assets, at June 30, 2026 and $6.5 million, or 1.55% of total assets, at September 30, 2025.

• Net charge-offs were 0.26% of average loans during the third quarter of 2026, primarily reflecting charge-offs of premiums associated with legacy government-guaranteed purchased loans that paid off during the quarter. This compared with no charge-offs in the third quarter of 2025 and net recoveries of 0.05% in the prior quarter; and

• The allowance for credit losses represented 0.79% of total loans at September 30, 2026, compared with 0.73% at September 30, 2025 and 0.83% at June 30, 2026.

Capital Management Initiatives

During the third quarter of 2026, the Company repurchased 15,000 shares of common stock in the open market at an average price of $10.51 per share, representing a 35.0% discount to book value per share at September 30, 2026. The current program has remaining authorization to repurchase 170,000 shares and is scheduled to expire on May 26, 2027, unless extended or completed earlier.

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. The Bank serves Cherokee, Cobb, DeKalb, Forsyth, Gwinnett, and North Fulton counties. As of September 30, 2026, Touchmark reported total assets of $404 million and total shareholders' equity of $72 million. For more information, visit www.TouchmarkBank.com and select 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)
		September 30,		December 31,
	(dollars in thousands, except per share data)	2026		2025(1)
ASSETS	Cash and due from banks	$             1,440		$             607
	Interest-bearing deposits	59,504		65,041
	Federal funds sold	5,175		5,175
	Total cash and cash equivalents	66,119		70,823
	Available-for-sale securities	19,353		10,806
	Equity securities	1,577		1,598
	Loans, net of deferred fees and purchased premiums	307,376		324,725
	Allowance for credit losses	(2,425)		(2,543)
	Net loans	304,951		322,182
	Bank premises and equipment, net	1,370		1,490
	Other real estate	5,826		5,826
	Other assets	4,434		4,912
	TOTAL ASSETS	$         403,630		$      417,637
LIABILITIES	Deposits:
	Noninterest bearing demand	$           16,916		$        17,722
	Interest-bearing demand	1,916		1,867
	Savings	102		46
	Money market	155,539		95,941
	Time deposits	151,039		223,119
	Total deposits	325,512		338,694
	Accounts payable and accrued liabilities	6,248		8,027
	TOTAL LIABILITIES	331,760		346,721
SHAREHOLDERS'	Common stock - $0.01 par value, 50,000,000 shares
EQUITY	authorized; 4,446,890 shares issued and outstanding
	as of September 30, 2026, and 4,476,891 shares issued and
	outstanding as of December 31, 2025	44		45
	Additional paid-in capital	46,895		46,895
	Retained earnings	25,920		24,523
	Accumulated other comprehensive loss	(989)		(547)
	TOTAL SHAREHOLDERS' EQUITY	71,870		70,916
	TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$         403,630		$      417,637
(1) Derived from audited financial statements as of December 31, 2025.

TOUCHMARK BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
	(dollars in thousands, except per share data)	2026		2025		2026		2025
INTEREST AND	Interest and fees on loans	$          4,646		$          5,144		$         13,500		$           16,529
DIVIDEND	Income on investment securities	157		112		358		322
INCOME	Interest from federal funds sold and other	676		812		1,854		1,935
	Total interest income	5,479		6,068		15,712		18,786
INTEREST	Interest on deposits	2,671		3,374		8,166		10,736
EXPENSE	Interest on borrowings	-		-		-		-
	Total interest expense	2,671		3,374		8,166		10,736
	Net interest income	2,808		2,694		7,546		8,050
	Provision for credit losses	-		150		320		595
	Net interest income after provision	2,808		2,544		7,226		7,455
NONINTEREST	Service fees on deposit accounts	2		3		7		6
INCOME	Loan servicing fees	90		98		290		337
	Gain on asset sales	-		-		219		-
	Other noninterest income	10		9		30		24
	Total noninterest income	102		110		546		367
NONINTEREST	Salaries and employee benefits	983		926		3,112		2,937
EXPENSE	Net occupancy expense	71		75		215		193
	Foreclosed real estate expenses	66		173		258		305
	Data processing expense	105		95		300		280
	Loan collection expense	55		65		57		129
	Audits and exams expense	65		45		165		135
	Board expenses	95		91		306		382
	Supervisory assessments	47		75		215		263
	Other noninterest expense	299		295		879		904
	Total noninterest expense	1,786		1,840		5,507		5,528
	Income before provision for income taxes	1,124		814		2,265		2,294
	Provision for income taxes	275		205		570		582
	Net income	$            849		$             609		$           1,695		$           1,712
	Weighted average shares outstanding - basic	4,454,879		4,475,891		4,468,246		4,475,891
	Weighted average shares outstanding - diluted	4,561,725		4,583,737		4,575,092		4,583,737
	Earnings per share	$           0.19		$           0.14		$             0.38		$             0.38
	Diluted earnings per share	$           0.19		$           0.13		$             0.37		$             0.37

Certain prior-year accounts were reclassified to conform to the current year presentation.

TOUCHMARK BANCSHARES, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(Unaudited)
	For the Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
(dollars in thousands except per share data)	2026		2026		2026		2025		2025
Results of Operations:
Interest income	$          5,479		$          5,363		$          4,871		$          5,513		$           6,067
Interest expense	2,671		2,687		2,808		3,091		3,373
Net interest income	2,808		2,676		2,063		2,422		2,694
Provision for credit losses	-		170		150		150		150
Non-interest income	102		329		115		112		110
Non-interest expense	1,786		1,830		1,892		1,941		1,840
Income before income taxes	1,124		1,005		136		443		814
Income taxes	275		253		42		4		205
Net income	$             849		$              752		$               94		$             439		$              609
Return on average assets	0.83 %		0.73 %		0.09 %		0.42 %		0.58 %
Return on average equity	4.74 %		4.22 %		0.53 %		2.43 %		3.34 %
Per Share Data:
Basic earnings per share	$            0.19		$            0.17		$            0.02		$            0.10		$             0.14
Diluted earnings per share	$            0.19		$            0.16		$            0.02		$            0.10		$             0.13
Book value per share	$          16.16		$          16.03		$          15.85		$          15.84		$           16.39
Weighted average shares outstanding per quarter - basic	4,454,879		4,473,209		4,476,891		4,476,630		4,475,891
Weighted average shares outstanding per quarter - diluted	4,561,725		4,580,055		4,583,737		4,583,737		4,583,737
Financial Condition Data and Ratios:
Loans, net of deferred fees and purchased premiums	$      307,376		$      317,376		$      320,708		$      324,725		$      329,437
Allowance for credit losses	$        (2,425)		$        (2,629)		$        (2,436)		$        (2,543)		$        (2,398)
Total assets	$      403,630		$      416,170		$      410,201		$      417,637		$      417,756
Total deposits	$      325,512		$      338,159		$      332,939		$      338,694		$      339,032
Total equity	$         71,870		$         71,535		$         70,953		$         70,916		$         73,347
Net interest margin	2.81 %		2.61 %		1.94 %		2.32 %		2.58 %
Efficiency	60.64 %		64.00 %		85.05 %		75.08 %		64.26 %
Common equity tier 1 ratio (bank)	45.92 %		42.68 %		42.09 %		46.00 %		48.54 %
Tier 1 leverage ratio (bank)	13.39 %		13.15 %		12.88 %		12.62 %		12.71 %
Tier 1 risk-based capital ratio (bank)	45.92 %		42.69 %		42.09 %		46.00 %		45.84 %
Asset Quality Data and Ratios:
Total nonperforming assets	$        18,708		$        22,010		$        22,590		$        25,080		$        22,323
Total nonperforming assets, net of government guarantees	$           6,293		$           6,424		$           6,483		$           6,521		$           6,478
Total nonperforming assets to total assets	4.63 %		5.29 %		5.51 %		6.01 %		5.34 %
Total nonperforming assets to total assets, net of
government guarantees	1.56 %		1.54 %		1.58 %		1.56 %		1.55 %
Allowance for credit losses to total loans	0.79 %		0.83 %		0.76 %		0.78 %		0.73 %
Net charge-offs (recoveries) to average loans	0.26 %		-0.05 %		0.32 %		0.01 %		0.00 %

 

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SOURCE Touchmark Bancshares, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Touchmark Bancshares' third-quarter 2026 earnings?

Touchmark earned $849,000, or $0.19 per diluted share, in the third quarter of 2026. That compares with $609,000, or $0.13 per diluted share, in the third quarter of 2025 and $752,000, or $0.16 per diluted share, in the preceding quarter.

Why did Touchmark Bancshares' loan balances decline in the third quarter of 2026?

Loan payoffs, principal repayments and purchased-loan premium amortization exceeded new loan growth. The quarter included $12.4 million in payoffs and principal repayments and $1.3 million in premium amortization on government-guaranteed purchased loans, partially offset by $3.7 million in new loan growth.

What affected Touchmark Bancshares' third-quarter 2026 interest income?

Third-quarter net interest income included $203,000 recognized on a government-guaranteed nonperforming loan. The preceding quarter included an $89,000 prepayment penalty. Funding-cost management and the addition of higher-yielding assets also contributed to the sequential increase.

Which Touchmark Bancshares deposits declined in the third quarter of 2026?

Time deposits fell $14.3 million and demand deposits declined $1.2 million during the quarter. Money market deposits grew $2.9 million, partially offsetting those declines.

What caused Touchmark Bancshares' third-quarter 2026 net charge-offs?

Net charge-offs primarily reflected premiums on legacy government-guaranteed purchased loans that paid off during the quarter. The allowance for credit losses represented 0.79% of total loans at September 30, compared with 0.83% at June 30 and 0.73% a year earlier.