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Touchmark Bancshares, Inc. Reports Significant Growth in Third Quarter 2026

Touchmark Bancshares, Inc. (OTCID: TMAK), the parent company of Touchmark National Bank, has announced impressive financial results for the third quarter of 2026. The company reported a net income of $849,000, translating to $0.19 per diluted share. This marks a striking 39% increase from the $609,000 or $0.13 per diluted share reported in the same quarter the previous year. Additionally, the year-to-date net income for the first nine months of 2026 was $1.70 million, consistent with the prior year but with a per-share value that reflects the improved financial positioning.

Key Financial Highlights

The growth in net income stands out for several reasons:

• - Net interest margin expanded to 2.81%, highlighting an effective management of funding costs.
• - Efficiency ratios improved to 60.64%, an 18-month low, indicating better operational control.
• - Nonperforming assets decreased by 15%, showing effective resolution and management of bad debts.
• - The company executed a strategic repurchase of 15,000 shares of its common stock in the open market, at a significant discount to book value.

Bobby Krimmel, the President and CEO, stated, "We made significant progress during the third quarter optimizing our balance sheet to support growth in net income, net interest margin and efficiency. Net income reached the highest level in two years while efficiency improved to an 18-month low." Despite experiencing a downturn in lending activity due to market caution caused by rising interest rates and inflation, Krimmel anticipates a rebound with organic loan growth expected to resume in the fourth quarter.

Operational Insights

Touchmark's latest quarter also reflects depth in its customer engagement, welcoming 28 new loan and deposit customers. The company emphasizes a robust relationship banking model, further strengthening its community ties. Additionally, the reduction of $3.3 million in nonperforming assets indicates an enhanced approach to managing nonperforming loans, which now sit at a three-year low.

Moreover, the organization has taken proactive steps in digital presence by revamping its website to provide a modern, informative platform for customers, streamlining access via the new domain, TouchmarkBank.com.

The comparison of operational metrics shows significant alterations:

• - Net interest income increased by 4.2% compared to Q3 2025. The sequential increase was mostly due to effective margin management and an addition of higher-yielding assets. This incorporated $203,000 of interest income recognized on a government-guaranteed nonperforming loan, further demonstrating Touchmark's operational resilience.
• - Year-to-date loan production totaled $26.5 million, up sharply from just $11.5 million in the same timeframe last year.

Balance Sheet Performance

As of September 30, 2026, total assets stood at $403.6 million, a decline attributed primarily to decreased deposit balances. Total loans reported a decrease of $10 million but highlight a strong origination capacity with $3.7 million in new loan growth.

Total deposits decreased by 3.7% due to noticeable declines in time deposits. However, Touchmark’s granular monitoring of assets and deposits led to improvements in capital position, remaining treated as well-capitalized as per federal standards.

Conclusion

Touchmark Bancshares, Inc. is navigating the financial landscape effectively. With improved metrics in net income, efficiency, and asset quality, the bank is not only reflecting strong performance for the current fiscal quarter but is also strategically positioned for future growth. Strong management emphasis on customer relations, careful asset oversight, and operational adjustments underpin the growth trajectory that the bank is pursuing. The positive momentum makes Touchmark an institution to watch in the evolving banking sector, especially with optimism surrounding loan growth returning in the subsequent quarter. For more details, visit www.TouchmarkBank.com.