Net Income Jumps 103% and Organic Loan Growth Accelerates by 402%
ALPHARETTA, Ga., July 22, 2026 /PRNewswire/ -- Touchmark Bancshares, Inc. (OTCID: TMAK), the holding company for Touchmark National Bank, today reported net income of $752,000, or $0.16 diluted earnings per share, for the second quarter of 2026, compared with $370,000, or $0.08 diluted earnings per share, for the second quarter of 2025. For the six months ended June 30, 2026, net income totaled $846,000, or $0.18 diluted earnings per share, compared with $1.1 million, or $0.24 diluted earnings per share, for the same period in 2025.
Quarterly Highlights
- Net income for the quarter increased 103% compared to the same period last year;
- Organic loan growth for the first six months of 2026 increased 402% compared to the same period in the prior year;
- Net interest margin expanded to 2.61%, its highest level since June 2025;
- Repurchased 15,000 shares of common stock in the open market; and
- Added a Chief Financial Officer.
"We are pleased with the improvement in net income, organic loan growth, net interest margin expansion and asset quality trends during the second quarter," said Bobby Krimmel, President and Chief Executive Officer of Touchmark Bancshares, Inc. "We continued to advance our relationship banking strategy with year-to-date organic loan growth up 402% compared to the prior year along with annualized deposit growth of 6.3% compared to the sequential quarter. Organic loan growth for the second quarter was solid at a 1.4% annualized pace after removing the balance of planned payoff of $4.5 million from a watch rated loan relationship."
Krimmel continued, "During the quarter, net income surged 103% compared to the prior year reaching the highest level since the first quarter of 2025 supported by a growing net interest margin and the lowest efficiency in the past four quarters. The Company completed its first-ever repurchase of common stock, buying 15,000 shares in the open market at a 41% discount to book value, and we expect to continue opportunistic open market share repurchases when market conditions are favorable. We also strengthened our executive leadership team by adding Gina Omolon as our Executive Vice President and Chief Financial Officer during the quarter in a planned leadership transition where Lynn Barron, our previous Chief Financial Officer, has assumed the Chief Human Resources Officer role."
Second Quarter 2026 Results of Operations
- Net income increased to $752,000 for the second quarter of 2026 compared to $370,000 for the same period for 2025 and $94,000 from the sequential quarter, driven by higher net interest income over the comparative periods as well as a non-recurring gain of $219,000 from a recovery of a loan guaranty;
- Net interest income increased 12.7% to $2.7 million for the second quarter of 2026 compared to $2.4 million for the same period for 2025 and by $614,000, or 29.8%, from the sequential quarter driven by the continued margin expansion resulting from cost of funds management and onboarding of higher yielding assets. The increase in net interest income from the sequential quarter was also impacted by a non-recurring premium amortization of $557,000 resulting from a government guaranteed purchased (GGP) loan payoff during the first quarter of 2026 adversely impacting net interest income. Excluding the impact of the non-recurring premium amortization, net interest income would have increased by $57,000 or 2.2% from the sequential quarter;
- Loan commitments totaled $12.4 million during the second quarter of 2026, compared with $11.8 million in the first quarter of 2026, and were approximately 2.5 times higher than the second quarter of 2025. For the six months ended June 30, 2026, loan commitments totaled $24.2 million, compared with $5.0 million for the same period in 2025. Excluding the impact of loan premium amortization, yield on loans increased 21 basis points to 6.84% from 6.63% in the sequential quarter. Cost of funds improved 15 basis points to 3.08% from 3.23% in the sequential quarter. These factors contributed to an expansion of the Bank's net interest margin to 2.61%, its highest level since June 2025;
- Non-interest income increased to $329,000, or 137%, for the second quarter of 2026 compared to the same period for 2025 and by $214,000, or 185%, from the sequential quarter. The increase in noninterest income resulted mainly from a $219,000 gain recognized from recovery of a government loan guaranty; and
- Non-interest expense decreased 1.1% to $1.8 million for the second quarter of 2026 compared to the same period for 2025 and by $62,000, or 3%, from the sequential quarter driven by lower other real estate expenses and supervisory fees resulting from the termination of the Bank's Formal Agreement with the OCC during the first quarter 2026. The efficiency ratio was 64% for the quarter compared with 70% one year earlier.
Balance Sheet and Capital
- Total assets grew $6.0 million during the second quarter of 2026 to $416.2 million, driven primarily by a $10.4 million increase in cash resulting from $5.2 million of net deposit growth and a $3.3 million decline in loan balances as repayments exceeded originations.
- Total loans declined by $15.0 million, or 4.5%, to $317.4 million during the second quarter of 2026 compared to the same period in 2025 and decreased by $3.3 million, or 1.0%, from the sequential quarter. The decrease in the balance over the prior quarter was driven by loan repayments of $3.2 million, premium amortization on GGP purchased loans of $1.0 million, planned loan payoff of a watch rated loan relationship of $4.5 million and other loan payoffs of $1.3 million partially offset by new loan growth of $6.7 million during the quarter;
- Total deposits decreased by $9.9 million, or 3%, to $338.2 million during the second quarter of 2026 compared to the same period in 2025 driven mainly by a reduction in time deposits of $87.2 million, offset in part by growth in money market deposits of $76.8 million. Total deposits increased by $5.2 million, or 1.6%, from the sequential quarter, driven by growth in money market deposits of $22.8 million offset by a reduction in time deposits of $17.2 million;
- As of June 30, 2026, book value per share decreased to $16.03 compared to $16.22 for the same period in 2025 but increased from $15.85 compared to the sequential quarter; and
- The Bank remained well-capitalized as of June 30, 2026, with a leverage ratio of 13.15% and tier 1 risk-based capital ratio of 42.68%.
Asset Quality
- Nonperforming assets, net of government guarantees, for the second quarter of 2026 decreased to $6.4 million, or 1.54% of total assets, compared to $7.4 million, or 1.74% of total assets, for the same period in 2025 and was essentially flat from the sequential quarter;
- There were no charge-offs during the second quarter compared with a net recovery of 0.01% for the same period in 2025 compared to net charge-offs of 0.32% for the sequential quarter driven by the resolution of problem assets; and
- Allowance for credit losses represented 0.83% of total loans outstanding as of the second quarter of 2026, up from 0.68% for the same period in 2025 and from 0.76% for the sequential quarter.
Capital Management Initiatives
During the second quarter of 2026, the Company repurchased 15,000 shares of its common stock in the open market at an average price of $9.41 per share which represents a 41.3% discount to the Company's book value per share as of June 30, 2026. Authorization to repurchase 185,000 shares remains in the current program, which is set to expire May 26, 2027, unless extended or otherwise completed.
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 Cherokee, Cobb, Dekalb, Forsyth, Gwinnett, and North Fulton counties. As of June 30, 2026, Touchmark reported total assets of $416 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) | ||||||||||
June 30, | December 31, | |||||||||
(dollars in thousands, except per share data) | 2026 | 2025(1) | ||||||||
ASSETS | Cash and due from banks | $ | 797 | $ | 607 | |||||
Interest-bearing deposits | 71,497 | 65,041 | ||||||||
Federal funds sold | 5,175 | 5,175 | ||||||||
Total cash and cash equivalents | 77,469 | 70,823 | ||||||||
Available-for-sale securities | 11,098 | 10,806 | ||||||||
Equity securities | 1,577 | 1,598 | ||||||||
Loans, net of deferred fees and purchased premiums | 317,376 | 324,725 | ||||||||
Allowance for credit losses | (2,629) | (2,543) | ||||||||
Net loans | 314,747 | 322,182 | ||||||||
Bank premises and equipment, net | 1,410 | 1,490 | ||||||||
Other Real Estate | 5,826 | 5,826 | ||||||||
Other assets | 4,043 | 4,912 | ||||||||
TOTAL ASSETS | $ | 416,170 | $ | 417,637 | ||||||
LIABILITIES | Deposits: | |||||||||
Noninterest-bearing | $ | 18,078 | $ | 17,722 | ||||||
Interest-bearing | 320,081 | 320,972 | ||||||||
Total deposits | 338,159 | 338,694 | ||||||||
Accounts payable and accrued liabilities | 6,476 | 8,027 | ||||||||
TOTAL LIABILITIES | 344,635 | 346,721 | ||||||||
SHAREHOLDERS' | Common stock - $0.01 par value per share, 50,000,000 shares | |||||||||
EQUITY | authorized; 4,461,890 shares issued and outstanding as of | |||||||||
June 30, 2026 and 4,476,891 shares issued and outstanding | ||||||||||
as of December 31, 2025 | 45 | 45 | ||||||||
Additional paid-in capital | 46,895 | 46,895 | ||||||||
Retained earnings | 25,228 | 24,523 | ||||||||
Accumulated other comprehensive loss | (633) | (547) | ||||||||
TOTAL SHAREHOLDERS' EQUITY | 71,535 | 70,916 | ||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 416,170 | $ | 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 | Six Months Ended | |||||||
June 30, | June 30, | |||||||
(dollars in thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | ||||
INTEREST AND | Interest and fees on loans | $ 4,645 | $ 5,139 | $ 8,854 | $ 11,385 | |||
DIVIDEND | Income on investment securities | 100 | 107 | 201 | 210 | |||
INCOME | Interest from federal funds sold and other | 618 | 635 | 1,179 | 1,123 | |||
Total interest income | 5,363 | 5,881 | 10,234 | 12,718 | ||||
INTEREST | Interest on deposits | 2,687 | 3,507 | 5,495 | 7,362 | |||
EXPENSE | Interest on borrowings | 0 | 0 | 0 | 0 | |||
Total interest expense | 2,687 | 3,507 | 5,495 | 7,362 | ||||
Net interest income | 2,676 | 2,374 | 4,739 | 5,356 | ||||
Provision for credit losses | 170 | 150 | 320 | 445 | ||||
Net interest income after provision | 2,506 | 2,224 | 4,419 | 4,911 | ||||
NONINTEREST | Service fees on deposit accounts | 3 | 2 | 5 | 3 | |||
INCOME | Loan servicing fees | 97 | 130 | 200 | 240 | |||
Gain on asset sales | 219 | 0 | 219 | 0 | ||||
Other noninterest income | 10 | 7 | 20 | 14 | ||||
Total noninterest income | 329 | 139 | 444 | 257 | ||||
NONINTEREST | Salaries and employee benefits | 1,145 | 1,028 | 2,129 | 2,011 | |||
EXPENSE | Net occupancy expense | 74 | 50 | 144 | 118 | |||
Foreclosed real estate expenses | 20 | 79 | 191 | 132 | ||||
Data processing expense | 97 | 91 | 195 | 185 | ||||
Loan collection expense | 2 | 59 | 2 | 64 | ||||
Audits and exams expense | 55 | 45 | 100 | 90 | ||||
Supervisory assessments | 77 | 95 | 168 | 188 | ||||
Other noninterest expense | 360 | 404 | 793 | 899 | ||||
Total noninterest expense | 1,830 | 1,851 | 3,722 | 3,687 | ||||
Income before provision for income taxes | 1,005 | 511 | 1,141 | 1,481 | ||||
Provision for income taxes | 253 | 141 | 295 | 377 | ||||
Net income | $ 752 | $ 370 | $ 846 | $ 1,104 | ||||
Weighted average shares outstanding - basic | 4,473,209 | 4,475,891 | 4,475,040 | 4,475,891 | ||||
Weighted average shares outstanding - diluted | 4,580,055 | 4,583,737 | 4,581,886 | 4,583,737 | ||||
Earnings per share | $ 0.17 | $ 0.08 | $ 0.19 | $ 0.25 | ||||
Diluted earnings per share | $ 0.16 | $ 0.08 | $ 0.18 | $ 0.24 | ||||
TOUCHMARK BANCSHARES, INC. AND SUBSIDIARY | |||||||||
FINANCIAL HIGHLIGHTS | |||||||||
(Unaudited) | |||||||||
For the Three Months Ended | |||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||
(dollars in thousands except per share data) | 2026 | 2026 | 2025 | 2025 | 2025 | ||||
Results of Operations: | |||||||||
Interest income | $ 5,363 | $ 4,871 | $ 5,513 | $ 6,067 | $ 5,881 | ||||
Interest expense | 2,687 | 2,808 | 3,091 | 3,373 | 3,507 | ||||
Net interest income | 2,676 | 2,063 | 2,422 | 2,694 | 2,374 | ||||
Provision for credit losses | 170 | 150 | 150 | 150 | 150 | ||||
Non-interest income | 329 | 115 | 112 | 110 | 139 | ||||
Non-interest expense | 1,830 | 1,892 | 1,941 | 1,840 | 1,852 | ||||
Income before income taxes | 1,005 | 136 | 443 | 814 | 511 | ||||
Provision for income taxes | 253 | 42 | 4 | 205 | 141 | ||||
Net income | 752 | 94 | 439 | 609 | 370 | ||||
Return on average assets | 0.73 % | 0.09 % | 0.42 % | 0.58 % | 0.35 % | ||||
Return on average equity | 4.22 % | 0.53 % | 2.43 % | 3.34 % | 2.03 % | ||||
Per Share Data: | |||||||||
Basic earnings per share | $ 0.17 | $ 0.02 | $ 0.10 | $ 0.14 | $ 0.08 | ||||
Diluted earnings per share | $ 0.16 | $ 0.02 | $ 0.10 | $ 0.13 | $ 0.08 | ||||
Book value per share | 16.03 | 15.85 | 15.84 | 16.39 | 16.22 | ||||
Weighted average shares outstanding per quarter - basic | 4,473,209 | 4,476,891 | 4,476,630 | 4,475,892 | 4,475,891 | ||||
Weighted average shares outstanding per quarter - diluted | 4,580,055 | 4,583,737 | 4,583,070 | 4,583,737 | 4,583,737 | ||||
Financial Condition Data and Ratios: | |||||||||
Loans, net of deferred fees and purchased premiums | $ 317,376 | $ 320,708 | $ 324,725 | $ 329,437 | $ 332,335 | ||||
Allowance for credit losses | $ 2,629) | $ (2,436) | $ (2,543) | $ (2,398) | $ (2,249) | ||||
Total assets | $ 416,170 | $ 410,201 | $ 417,637 | $ 417,756 | $ 426,007 | ||||
Total deposits | $ 38,159 | $ 332,939 | $ 338,694 | $ 339,032 | $ 348,064 | ||||
Total equity | $ 71,535 | $ 70,953 | $ 70,916 | $ 73,347 | $ 72,593 | ||||
Net interest margin | 2.61 % | 1.94 % | 2.32 % | 2.58 % | 1.83 % | ||||
Efficiency | 64.00 % | 85.05 % | 75.08 % | 64.26 % | 70.65 % | ||||
Common equity tier 1 ratio (Bank) | 42.68 % | 42.09 % | 46.00 % | 48.54 % | 47.88 % | ||||
Tier 1 leverage ratio (Bank) | 13.15 % | 12.88 % | 12.62 % | 12.71 % | 12.49 % | ||||
Tier 1 risk-based capital ratio (Bank) | 42.69 % | 42.09 % | 46.00 % | 45.84 % | 47.88 % | ||||
Asset Quality Data and Ratios: | |||||||||
Total nonperforming assets | $ 22,010 | $ 22,590 | $ 25,080 | $ 22,323 | $ 22,409 | ||||
Total nonperforming assets, net of government guarantees | $ 6,424 | $ 6,483 | $ 6,521 | $ 6,478 | $ 7,422 | ||||
Total nonperforming assets to total assets | 5.29 % | 5.51 % | 6.01 % | 5.34 % | 5.26 % | ||||
Total nonperforming assets to total assets, net of | |||||||||
government guarantees | 1.54 % | 1.58 % | 1.56 % | 1.55 % | 1.74 % | ||||
Allowance for credit losses to total loans | 0.83 % | 0.76 % | 0.78 % | 0.73 % | 0.68 % | ||||
Net charge-offs (recoveries) to average loans | 0.00 % | 0.32 % | 0.01 % | 0.00 % | -0.01 % | ||||
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SOURCE Touchmark Bancshares, Inc.
