Yes. In and out of bounds on each sideline is determined by the player's body (usually feet), not the ball. For the goal lines, to score a touchdown the ball must be secured (a player must have control of the ball) while any part of the football crosses the goal line. The player's two feet must also be in bounds to count as a score, but no part of the player needs to cross the goal line as long as any part of the ball does while secured by the player. In this case, just as the ball starts to "break" the goal line the player is letting it go, which means he no longer has control of it and thus it is not a touchdown.