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 10th 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.
Gina Omolon, Executive Vice President and CFO, Touchmark National Bancshares, Inc., (770) 407-6702