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Touchmark Bancshares, Inc. Reports Fourth Quarter Results

Touchmark Bancshares, Inc. (OTCID: TMAK), the holding company for Touchmark National Bank, recently disclosed its financial outcomes for the fourth quarter and full year ending December 31, 2025. In the latest report, the company recorded a net income of $439,000, representing a 28% decrease compared to the prior quarter.

Financial Highlights

The financial report brought several notable metrics to attention:

• - Net income has decreased dramatically, attributed primarily to the acceleration of unamortized premiums.
• - Although new loan production surpassed $6 million, the anticipated net loan growth failed to materialize due to unexpected loan payoffs of $4.5 million.
• - On a positive note, deposits (excluding brokered ones) surged by $2.6 million, benefitting from decreased deposit expenses.
• - The company has declared an annual dividend of $0.65 per share.

Commentary from Leadership

Bobby Krimmel, President and CEO of Touchmark National Bank, indicated that while net loan growth was anticipated, it was hindered by significant loan payoffs. He shared that the positive trajectory of deposit growth reflects increased customer engagement in core accounts. Krimmel emphasized that the institution aims to optimize its balance sheet through organic loan expansion and forming robust deposit relationships, focusing on small to medium-sized businesses with revenues up to $50 million.

Detailed Quarterly Performance

Reviewing the operational metrics for the fourth quarter of 2025:

• - Net interest income fell to $2.4 million, down 21% from 2024's fourth quarter, influenced by reduced net interest income and higher loan purchase premium amortization, which rose by $310,000.
• - Non-interest income saw a decrease of 16% bringing it down to $152,000, yet there was a sequential increase of 38% compared to the previous quarter due to a rise in early loan prepayment revenue.
• - The non-interest expenses increased by 34% to $1.9 million in comparison to the fourth quarter of 2024, driven by elevated salaries and benefits costs.

Balance Sheet Insights

Total loans were reported at $325 million, a decline of $55 million or 14% compared to the same quarter last year. Time deposits and brokered deposits saw a reduction, yet this was offset by an increase in money market deposits. The overall asset figure stood at $418 million, showing an overall decrease from previous quarters.

Asset Quality Update

Regarding asset quality:

• - Nonperforming assets declined to $6.5 million, representing 1.56% of total assets, an improvement from 1.68% in 2024, although it saw a slight uptick from the previous quarter due to a single problematic loan in resolution.
• - The allowance for credit losses indicated a rise, standing at 0.78% of total loans, reflecting a proactive stance on credit risk management.

Leadership Developments

Amidst these financial challenges, Touchmark Bancshares announced the addition of Addam Taussig as Executive Vice President and Chief Lending Officer. This strategic addition aims to revitalize the bank's lending capabilities. Taussig brings a wealth of experience, and his leadership is expected to bolster loan production and future pipeline opportunities, exceeding $40 million.

Conclusion

Touchmark Bancshares is observing a period of both challenges and growth opportunities as it navigates through fluctuating financial indicators and embraces leadership changes. With a focus on strategic balance sheet management and a commitment to serve its community, Touchmark remains poised for future development in Georgia's banking sector.

For further detailed financial data, please visit Touchmark's Investor Relations page.