TOUCHMARK BANCSHARES, INC. REPORTS THIRD QUARTER RESULTS

Net income Rises 65% to $609,000

Touchmark Bancshares, Inc. (OTC Pink: TMAK),the holding company for Touchmark National Bank, today reported financial results for the third quarter of 2025.

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Key highlights of Touchmark Bancshares' results for the third quarter of 2025 include:

— Net income increases 65% to $609,000;

— Net interest margin jumps 75 basis points;

— Added a Senior Credit Officer;

— Reduced OREO by $1.1 million at no additional loss; and

— New customer growth rate accelerated.

“During the third quarter, net income rebounded to $609,000 driven by significant growth in our net interest margin supported by higher loan yields and lower deposit cost,” said Bobby Krimmel, President and CEO of Touchmark National Bank. “New loan growth for the quarter was stronger than anticipated and resulted in the lowest percentage decline in the loan portfolio since December 2023. We expect net loan growth to turn positive for the fourth quarter of 2025, three months faster than previously expected and supported by a robust pipeline of $35 million in opportunities.”

Krimmel continued, “We strategically reduced our non-core deposit balance during the quarter and shifted retail CD customers to money market accounts to improve the balance sheet mix. We added a new Senior Credit Officer and successfully disposed of a piece of OREO at no additional loss. Liquidity remains strong and supports expected future loan growth.”

Third Quarter 2025 Results of Operations

— Net income decreased 60% to $609,000 for the third quarter of 2025 compared to the same period for 2024 but increased 65% from the sequential quarter driven by growth in interest income of $653,000 coupled with lower interest expense of $133,000 offset in part by lower non-interest income of $494,000;

— Net interest income decreased 15% to $2.7 million for the third quarter of 2025 compared to the same period for 2024 but increased by $786,000, or 41%, from the sequential quarter driven by lower loan purchase premium amortization of $1 million and declining deposit funding cost of $133,000;

— Non-interest income decreased 88% to $110,000 for the third quarter of 2025 compared to the same period for 2024 and decreased by $494,000, or 82%, from the sequential quarter driven by a decline in early loan prepayment revenue of $466,000; and

— Non-interest expense decreased 4% to $1.8 million compared to the same period for 2024 and decreased by $11,000 from the sequential quarter driven by a decline in salaries and employee benefits expense of $102,000 offset by an increase in OREO holding expense of $94,000.

Balance Sheet and Capital

— Total loans declined by $60 million, or 15%, to $329 million during the third quarter of 2025 compared to the same period in 2024 and decreased by $3 million, or 1%, from the sequential quarter driven by normal amortization of the loan portfolio of $5.8 million partially offset by new loan growth of $2.9 million;

— Total deposits declined by $44 million, or 11%, to $339 million during the third quarter of 2025 compared to the same period in 2024 and decreased by $9 million, or 3%, from the sequential quarter driven by a reduction in non-core deposits of $6.8 million, lower retail checking and money market balances of $1.7 million and time deposits of $549,000. New customer balance growth during the third quarter of 2025 was $16.6 million and replaced most of the balance runoff; and

— As of September 30, 2025, book value per share decreased 2% to $16.39 compared to the same period in 2024 but increased by $0.17 compared to the sequential quarter.

Asset Quality

— Nonperforming assets, net of government guarantees, for the third quarter of 2025 decreased to $6.5 million, or 1.55% of total assets, compared to $11.1 million, or 2.37% of total assets, for the same period in 2024 and declined by $944,000 compared to the sequential quarter driven by the resolution of an OREO asset for $1.1 million at no additional loss;

— Net recoveries to average loans improved to 0.00% for the third quarter of 2025 compared to net charge-offs of 0.34% for the same period in 2024 and net recoveries of 0.01% for the sequential quarter; and

— Allowance for credit losses represented 0.73% of total loans outstanding as of the third quarter of 2025, down from 1.20% for the same period in 2024 but up from 0.68% for the sequential quarter.

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 September 30, 2025, Touchmark reported total assets of $418 million and total shareholders' equity of $73 million. For more information about Touchmark, visit us atwww.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.

TOUCHMARKBANCSHARES, INC. AND SUBSIDIARYCONSOLIDATED BALANCE SHEETS (unaudited) September 30, December 31, (dollars in thousands, except per share data) 2025 2024(1)ASSETS Cash and due from banks $ 897 $ 1,184 Interest-bearing deposits 60,299 41,408 Federal funds sold 5,175 5,175 Total cash and cash equivalents 66,371 47,767 Securities: Available-for-sale 10,477 10,019 Equity securities 1,598 1,654 Loans, net of deferred fees 329,437 379,419 Allowance for credit losses (2,398) (2,358) Net loans 327,039 377,061 Bank premises and equipment, net 1,273 1,217 Other Real Estate 5,826 6,888 Deferred tax asset 1,040 1,112 Other assets 4,132 4,573 TOTAL ASSETS $ 417,756 $ 450,291LIABILITIES Deposits: Noninterest-bearing $ 13,009 $ 16,957 Interest-bearing 326,023 352,590 Total deposits 339,032 369,547 Accounts payable and accrued liabilities 5,377 9,331 TOTAL LIABILITIES 344,409 378,878SHAREHOLDERS' Common stock – $0.01 par value per share, 50,000,000 sharesEQUITY authorized; 4,475,892 shares issued and outstanding as of the periods presented 45 45 Additional paid-in capital 46,885 46,881 Retained earnings 26,979 25,266 Accumulated other comprehensive loss (562) (779) TOTAL SHAREHOLDERS' EQUITY 73,347 71,413 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 417,756 $ 450,291 (1) Derived from audited financial statements as of December 31, 2024.TOUCHMARKBANCSHARES, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF INCOME(unaudited) Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands, except per share data) 2025 2024 2025 2024INTEREST AND Interest and fees on loans $ 5,144 $ 7,113 $ 16,020 $ 22,075DIVIDEND Income on investment securitiesINCOME Taxable interest 112 105 321 208 Interest from federal funds sold and other 812 655 1,935 2,243 Total interest income 6,068 7,873 18,276 24,526INTEREST Interest on deposits 3,374 4,633 10,736 14,907EXPENSE Interest on borrowings – 64 – 158 Total interest expense 3,374 4,697 10,736 15,065 Net interest income 2,694 3,176 7,540 9,461 Provision for credit losses 150 150 595 336 Net interest income after provision 2,544 3,026 6,945 9,125NONINTERESTINCOME Service fees on deposit accounts 5 4 6 6 Loan servicing fees 98 134 338 392 Other noninterest income 7 746 533 2,193 Total noninterest income 110 884 877 2,591NONINTEREST Salaries and employee benefits 926 1,136 2,937 3,248EXPENSE Net occupancy expense 75 71 193 206 Foreclosed Real Estate Expenses 173 53 305 543 Data processing expense 95 85 280 256 Loan Collection Expense 101 12 165 397 Audits and exams expense 45 43 135 127 Board Expenses 77 93 335 230 Supervisory Assessments 75 140 263 517 Other noninterest expense 273 258 914 847 Total noninterest expense 1,840 1,891 5,527 6,371 Income before provision for income taxes 814 2,019 2,294 5,345 Provision for income taxes 205 491 582 1,314 Net income $ 609 $ 1,528 $ 1,712 $ 4,031 Weighted average shares outstanding – basic 4,475,892 4,475,891 4,475,891 4,475,891 Weighted average shares outstanding – diluted 4,583,737 4,583,737 4,583,737 4,583,737 Earnings per share $ 0.14 $ 0.34 $ 0.38 $ 0.90 Diluted earnings per share $ 0.13 $ 0.33 $ 0.37 $ 0.88TOUCHMARKBANCSHARES, INC. AND SUBSIDIARYCONSOLIDATED FINANCIAL HIGHLIGHTS(unaudited) For the Three Months Ended(dollars in thousands, except per share data) September 30, June 30, March 31, December 31, September 30, 2025 2025 2025 2024 2024Results of Operations:Interest income $ 6,068 $ 5,415 $ 6,793 $ 7,301 $ 7,873Interest expense 3,374 3,507 3,855 4,285 4,697Net interest income 2,694 1,908 2,938 3,016 3,176Provision for credit losses 150 150 295 2,240 150Non-interest income 110 604 162 4 884Non-interest expense 1,840 1,851 1,836 1,256 1,908Income (loss) before income taxes 814 511 969 (476) 2,002Income taxes (benefit) 205 141 236 (184) 491Net income (loss) $ 609 $ 370 $ 733 $ (292) $ 1,511Per Share Data:Basic earnings per share $ 0.14 $ 0.08 $ 0.16 $ (0.07) $ 0.34Diluted earnings per share $ 0.13 $ 0.08 $ 0.16 $ (0.07) $ 0.33Book value per share $ 16.39 $ 16.22 $ 16.14 $ 15.95 $ 16.72Weighted average shares outstanding per quarter – basic 4,475,892 4,475,891 4,475,891 4,475,891 4,475,891Weighted average shares outstanding per quarter – diluted 4,583,737 4,583,737 4,583,737 4,583,737 4,583,737Financial Condition Data and Ratios:Loans, net of deferred fees $ 329,437 $ 332,335 $ 362,836 $ 379,419 $ 389,679Allowance for credit losses $ (2,398) $ (2,249) $ (2,092) $ (2,358) $ (4,673)Total assets $ 417,756 $ 426,007 $ 432,421 $ 450,291 $ 464,973Total deposits $ 339,032 $ 348,064 $ 354,099 $ 369,547 $ 382,641Net interest margin 2.58% 1.83% 2.71% 2.72% 2.75%Efficiency 64.26% 70.65% 58.68% 44.81% 46.56%Asset Quality Data and Ratios:Total nonperforming assets $ 22,323 $ 22,409 $ 23,042 $ 23,039 $ 27,735Total nonperforming assets, net of government guarantees 6,478 7,422 7,553 7,552 11,059Nonperforming assets to total assets 5.34% 5.26% 5.33% 5.13% 5.95%Nonperforming assets to total assets, net of government guarantees 1.55% 1.74% 1.75% 1.68% 2.37%Allowance for credit losses to total loans 0.73% 0.68% 0.58% 0.62% 1.20%Net (recoveries) charge-offs to average loans (annualized) (0.00%) (0.01%) 0.60% 4.74% 0.34%

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SOURCE Touchmark Bancshares, Inc.

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