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, | December 31, | September 30, | June 30, | March 31, | |||||||||
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 | 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 | 4,475,891 | 4,475,891 | 4,475,891 | 4,475,891 | 4,475,891 | |||||||||
Weighted average shares outstanding per | 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 | 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 | 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 | 0.60 % | 4.74 % | 0.34 % | (0.01 %) | 0.31 % | |||||||||
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SOURCE Touchmark Bancshares, Inc.