Touchstone Bankshares : 2023 Letter to Shareholders
April 15, 2023 at 12:56 am IST
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Dear Fellow Shareholder,
Well, another year has gone by and the world recovered from the pandemic and then jumped into an environment where interest rates jolted higher in efforts to dampen inflation and return monetary policy to normalized levels. Before addressing current market conditions and the related impacts, I would like to recognize the success and the significance of the team's efforts.
2022 Key Highlights:
Annual cash dividend raised $.02 or 6.7% to $.32 per share.
$4.0 million of net income or $1.24 per basic and diluted shares.
Rewarded shareholders with a $1.5 million common stock repurchase.
Successful completion of the Paycheck Protection Program, ("PPP").
Two consecutive years of double-digit loan growth.
Maintained record asset quality.
Issued $10 million in subordinated debt to support capital management initiatives.
Continued to hold ample liquidity and secondary liquidity sources.
As noted above, soaring interest rates are negatively impacting the financial industry in numerous ways. Whether it be unrealized losses on investment portfolios depressing equity positions, compression of net interest margins, the rising cost of human and financial capital, coupled with the intense battle for deposits, these are only a few. The convergence of these forces places strong headwinds against the financial industry and thus resulted in part to the recent failure of two large financial institutions. It should be acknowledged that those institutions were unique, such as the composition and structure of their deposit bases. For Touchstone, however, the deposit holdings are diverse with manageable exposure to uninsured deposits, all while holding liquidity and capital resources to support our customers and businesses.
While the financial industry is facing turmoil and unrest, we remain focused on our mission and strategic initiatives. Since forming in 1906, much has taken place in the world and some things such as the Touchstone team's fortitude and dedication are those intangibles that carry you through the more challenging times. Rest assured, that I, along with the Touchstone employees will continue to work diligently for our fellow shareholders.
On behalf of Touchstone Bank, we appreciate and value your investment and loyalty.
Best regards,
James R. Black, CFA
President & Chief Executive Officer
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Disclaimer
Touchstone Bank published this content on 13 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 April 2023 19:25:02 UTC.
Touchstone Bank (the Bank) is a local community bank. The Bank provides depository and lending services to customers primarily within the counties of Dinwiddie, Chesterfield and Prince George and the cities of Colonial Heights, Hopewell, and Petersburg. The Bank offers a range of services, including personal, business, loans, services and tools, and wealth management. The Bank's personal and business services include checking account, savings account, loans, and credit card services. The Bank's services and tools include account services, treasury services and various tools. The Bank provides investment, and insurance products and services through its subsidiary, Infinex Investments, Inc. The Bank also provides networking solutions to Virginia community banks through its subsidiary, McKenney Group, LLC. The Bank has approximately 10 branches serving Southern and Central Virginia and two branches and a loan center serving Northern North Carolina.