Touchmark Bancshares Reports Significant Growth in Q3 Earnings

By Owen Jenkins Updated Nov 7, 2025 Category News Read 5 min

Touchmark Bancshares, Inc. Announces Third Quarter Financial Highlights

Net Income Surges by 65% to $609,000

Touchmark Bancshares, Inc. (OTC Pink: TMAK), the parent company for Touchmark National Bank, proudly shares its financial results for the third quarter. This reporting period has highlighted impressive growth metrics that showcase the bank's trajectory.

Among the key points observed in Touchmark Bancshares' results for the third quarter are:

Net income has risen by 65%, reaching a total of $609,000;
An increase of 75 basis points in net interest margin;
Appointment of a new Senior Credit Officer to strengthen leadership;
$1.1 million reduction in Other Real Estate Owned (OREO) without incurring additional losses;
A notable acceleration in new customer growth rate, contributing positively to overall performance.

Bobby Krimmel, President and CEO of Touchmark National Bank, stated, "Our net income showcased remarkable recovery during this quarter, reflecting robust growth in net interest margin backed by increased loan yields paired with diminished deposit costs. The new loan growth surpassed expectations, leading to the smallest percentage drop in our loan portfolio since December of the previous year. We predict positive net loan growth for the fourth quarter, supported by an impressive pipeline of $35 million in opportunities."

Further elucidating Touchmark's strategy, Krimmel noted, "We proactively decreased our reliance on non-core deposits and encouraged retail CD customers to transfer to money market accounts, enhancing our balance sheet mix overall. We have successfully onboarded a Senior Credit Officer and efficiently managed our OREO inventory at no loss. Our liquidity is robust and positions us well for anticipated future loan growth."

Financial Operations Review for Third Quarter 2025

Net income saw a decrease of 60% compared to the same quarter of the previous year, yet it increased 65% from the preceding quarter. This growth was driven by interest income of $653,000 alongside reduced interest expenses of $133,000, partially offset by a significant decline of non-interest income totaling $494,000;
Net interest income declined by 15% to $2.7 million, relative to the same quarter last year, but displayed a sharp increase of 41%, or $786,000, from the prior quarter, attributed to lower loan premium amortization of $1 million and decreasing deposit funding costs;
A drastic fall of 88% in non-interest income brought it down to $110,000, contrasted to the same quarter a year ago, and also reflected an 82% decrease from the previous quarter due to a steep drop in early loan prepayment revenues, amounting to $466,000;
Overall non-interest expenses decreased 4% to $1.8 million compared to the prior year's quarter, and reduced by $11,000 from the previous quarter, mainly owing to reduced salaries and employee benefits offset by increased OREO holding costs.

Balance Sheet Insights and Capital Structure

Total loans witnessed a decrease of $60 million, or 15%, reaching $329 million compared to last year's third quarter and experienced a $3 million, or 1%, dip from the previous quarter, due to usual loan portfolio amortization of $5.8 million, only mildly cushioned by new loan growth of $2.9 million;
Total deposits dwindled by $44 million, or 11%, to $339 million during third quarter, relative to previous year's results, reflecting a drop of $9 million or 3%. This pattern is a consequence of a reduction in non-core deposits by $6.8 million and decreased retail checking and money market balances;
At the close of September, the book value per share registered at $16.39, a minor decline of 2% compared to a year prior, but up by $0.17 from the previous quarter.

Asset Quality Assessment

Nonperforming assets, net of government guarantees, for the final quarter decreased to $6.5 million, constituting 1.55% of total assets, a reduction from $11.1 million (or 2.37% of total assets) compared to the previous year; it represented a $944,000 decrease from the preceding quarter, largely due to a successful resolution of OREO assets amounting to $1.1 million without incurring losses;
Net recoveries against average loans stabilized at 0.00% for the third quarter, contrasting with net charge-offs of 0.34% year-over-year and net recoveries of 0.01% from the last quarter;
As of the third quarter, the allowance for credit losses comprised 0.73% of total loans, down from the 1.20% of the same period last year, although an increase from the 0.68% of the preceding quarter.

About Touchmark Bancshares, Inc. and Touchmark National Bank

Touchmark Bancshares, Inc. acts as the holding entity for Touchmark National Bank, a community banking institution established in 2008. The bank serves several counties and manages total assets amounting to $418 million, with total shareholders' equity totaling $73 million. For additional details regarding Touchmark, please visit www.touchmarknb.com under the Investor Relations section.

Frequently Asked Questions

What financial performance did Touchmark Bancshares report?

Touchmark Bancshares reported a 65% increase in net income for the third quarter, totaling $609,000.

What main factors contributed to the bank's income growth?

The main contributors to income growth included an increase in net interest margins, higher loan yields, and decreased deposit costs.

How has the loan portfolio changed over the quarters?

Total loans decreased by $60 million, or 15%, compared to the same quarter last year while showing a new loan growth of $2.9 million this quarter.

Can you tell me about Touchmark's approach to asset management?

Touchmark has strategically managed its assets by resolving nonperforming assets and maintaining liquidity, which is expected to support future loan growth.