Investor Presentation 2 nd Quarter 2024 1 Cautionary Statements Forward Looking: This presentation contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only the beliefs, expectations, or opinions of TowneBank and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward-looking statements may be identified by the use of such wor ...

Earnings Presentation 4th Quarter 2024 1 Cautionary Statements Forward Looking: This press release contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only the beliefs, expectations, or opinions of TowneBank and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward-looking statements may be identified by the use of such wor ...

1 Cautionary Statements Forward Looking: This presentation contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only the beliefs, expectations, or opinions of TowneBank and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward-looking statements may be identified by the use of such words as: "believe," "expect," "anticipate, ...

Core Viewpoint - TowneBank reported strong financial performance for the first quarter of 2025, with net income of $50.59 million, a significant increase from $34.69 million in the same quarter of 2024, reflecting a robust growth strategy and effective management of liquidity and capital levels [1][2]. Financial Performance - Earnings per diluted share for the quarter were $0.67, up from $0.46 in the first quarter of 2024 [1]. - Core earnings (non-GAAP) were $50.98 million, or $0.68 per diluted share, compared to $36.27 million, or $0.48 per diluted share, in the prior year [1]. - Total revenues increased by $24.94 million, or 14.93%, to $192.04 million compared to the first quarter of 2024 [7]. Loan and Deposit Growth - Annualized loan growth was nearly 7%, with loans held for investment reaching $11.65 billion, an increase of $200.40 million, or 1.75%, year-over-year [7][15]. - Total deposits rose to $14.61 billion, an increase of $482.47 million, or 3.42%, compared to the first quarter of 2024 [7][15]. - Noninterest-bearing deposits increased by 2.85% to $4.31 billion compared to the prior year [15]. Interest Income and Margin - Net interest income for the quarter was $120.48 million, up from $103.22 million in the first quarter of 2024, driven by lower deposit costs [7]. - The net interest margin was 3.14%, an increase from 2.72% in the same quarter of the previous year [7][24]. Credit Quality - The quarterly provision for credit losses was an expense of $2.42 million, compared to a benefit of $0.88 million in the prior year [7]. - Nonperforming assets were $7.37 million, or 0.04% of total assets, down from $7.77 million, or 0.05%, at March 31, 2024 [15]. Strategic Partnerships - The company completed a partnership with Village Bank and Trust Financial Corp. and signed a definitive agreement with Old Point Financial Corporation, which are expected to enhance shareholder returns with low execution risk [4]. Capital Ratios - The common equity tier 1 capital ratio was 12.75%, and the total risk-based capital ratio was 15.65% [21]. - Book value per common share increased to $29.19 from $27.33 a year ago [21]. Noninterest Income - Total noninterest income rose to $71.57 million, an increase of $7.68 million, or 12.02%, compared to the first quarter of 2024 [14]. - Property management fee revenue increased by 16.26% to $19.50 million, driven by organic growth [14]. Asset Quality - The allowance for credit losses on loans represented 1.08% of total loans, consistent with the previous year [15]. - The ratio of net charge-offs to average loans was 0.02%, unchanged from the first quarter of 2024 [15]. Investment Securities - Total investment securities were $2.70 billion, an increase from $2.54 billion at March 31, 2024 [10]. - The carrying value of available-for-sale debt securities included net unrealized losses of $119.25 million, down from $170.84 million a year ago [10]. Overall Growth Strategy - The company emphasizes a conservative approach to relationship banking and diversified fee income businesses to strengthen its position during economic uncertainty [2]. - The focus on measured growth and maintaining healthy liquidity and capital levels is expected to support the company in the face of potential short-term challenges [2].

Core Points - TowneBank has signed a definitive agreement to acquire Old Point Financial Corporation and its subsidiary, The Old Point National Bank of Phoebus, enhancing its position in the Hampton Roads MSA with a strong core deposit franchise [1][2] - The combined company, post-acquisition, is projected to have total assets of $19.5 billion, loans of $13.1 billion, and deposits of $16.3 billion as of December 31, 2024, with an expected 10% accretion to earnings per share [2][4] - Old Point shareholders can choose to receive either $41.00 in cash or 1.1400 shares of TowneBank common stock for each share of Old Point, resulting in an aggregate transaction value of approximately $203 million [3][4] Company Overview - TowneBank, founded in 1999, operates over 50 banking offices across Hampton Roads and Central Virginia, with total assets of $17.25 billion as of December 31, 2024 [6][7] - Old Point Financial Corporation, headquartered in Hampton, Virginia, operates 13 branch offices and offers a full range of retail and commercial financial services, including mortgage and insurance products [8]

Core Viewpoint - TowneBank has successfully completed its merger with Village Bank and Trust Financial Corp, enhancing its presence in the Richmond MSA and creating opportunities for revenue synergies and strategic capital deployment [1][2]. Company Overview - TowneBank, founded in 1999, focuses on building relationships and offers a full range of banking and financial services, emphasizing community engagement and enriching lives [4]. - As of December 31, 2024, TowneBank has total assets of $17.25 billion, making it one of the largest banks headquartered in Virginia [5]. Merger Details - The merger was announced in September 2024 and received strong support from Village shareholders during a special meeting in December 2024 [1]. - Following the merger effective April 1, 2025, Village Bank locations will operate as "Village Bank, a Division of TowneBank" until June 2025, when their systems will be integrated [2]. - Frank E. Jenkins, Jr., a former director of Village, has been appointed to the TowneBank board of directors as of April 1, 2025 [2]. Leadership Statements - G. Robert Aston, Jr., Executive Chairman of TowneBank, expressed enthusiasm about the merger and the opportunity to welcome more members in the Richmond area [2]. - James E. Hendricks, Jr., former President and CEO of Village, highlighted the merger as a chance to partner with an organization committed to community engagement [3].

Core Viewpoint - TowneBank has received regulatory approval for its acquisition of Village Bank and Trust Financial Corp, with over 86% of Village's shareholders voting in favor of the merger, which is expected to enhance TowneBank's presence in the Richmond MSA and create revenue synergies [1][2][3] Group 1: Merger Details - The merger is anticipated to be completed in early April 2025, pending customary closing conditions [2] - Following the merger, Village Bank locations will operate as "Village Bank, a Division of TowneBank" until mid-June 2025, when systems will be integrated [2] Group 2: Company Profiles - TowneBank, founded in 1999, operates over 50 banking offices and has total assets of $17.25 billion as of December 31, 2024, making it one of the largest banks in Virginia [5] - Village Bank and Trust Financial Corp, also founded in 1999, operates nine branch offices and had total assets of $756.1 million as of December 31, 2024 [6]

Core Viewpoint - TowneBank (TOWN) is showing solid improvement in earnings estimates, which may lead to continued short-term price momentum and a favorable investment opportunity [1][2]. Estimate Revisions - The upward trend in earnings estimate revisions reflects growing analyst optimism regarding TowneBank's earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, TowneBank is projected to earn $0.63 per share, representing a +31.25% change from the previous year, with the Zacks Consensus Estimate increasing by 8.62% over the last 30 days [4]. - For the full year, the earnings estimate stands at $2.60 per share, indicating a +19.27% change from the prior year, with a 5.05% increase in the consensus estimate due to two upward revisions [5]. Zacks Rank - TowneBank has achieved a Zacks Rank 2 (Buy), supported by strong agreement among analysts in raising earnings estimates, which historically correlates with stock performance [3][6]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have been shown to significantly outperform the S&P 500 [6]. Investment Outlook - The strong estimate revisions have led to a stock price increase of 11.2% over the past four weeks, suggesting potential for further upside, making it a candidate for portfolio addition [7].

分组1 - TowneBank reported quarterly earnings of $0.55 per share, exceeding the Zacks Consensus Estimate of $0.45 per share, and up from $0.42 per share a year ago, representing an earnings surprise of 22.22% [1] - The company posted revenues of $178.26 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 5.60%, compared to year-ago revenues of $155.55 million [2] - Over the last four quarters, TowneBank has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] 分组2 - The current consensus EPS estimate for the coming quarter is $0.58 on revenues of $186.8 million, and for the current fiscal year, it is $2.48 on revenues of $788.2 million [7] - The Zacks Industry Rank for Banks - Southeast is currently in the top 24% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Core Insights - TowneBank reported a year-over-year increase in earnings for 2024, with net income reaching $161.76 million, or $2.15 per diluted share, compared to $153.72 million, or $2.06 per diluted share in 2023 [1][2] - The fourth quarter of 2024 saw earnings of $41.27 million, or $0.55 per diluted share, a significant increase from $28.80 million, or $0.39 per diluted share in the same quarter of 2023 [1][2] - The company anticipates growth opportunities through the acquisition of Village Bank and plans to enhance fee-based businesses [5][16] Annual Highlights for 2024 Compared to 2023 - Core earnings (non-GAAP) for 2024 were $163.65 million, or $2.18 per diluted share, compared to $160.94 million, or $2.16 per diluted share in 2023 [1] - Total revenues slightly decreased to $693.75 million from $694.12 million in the prior year, with net interest income decreasing by $15.18 million due to higher deposit costs [7] - Noninterest income increased by $14.80 million, driven by growth in residential mortgage banking income and insurance commissions [7] Highlights for Fourth Quarter 2024 - Total revenues for the fourth quarter were $177.16 million, an increase of $21.61 million, or 13.90% from the prior year quarter [7] - Net interest income increased by $10.32 million, or 9.58%, driven by increases in loan interest income [7] - Noninterest income rose by $11.29 million, or 23.61%, compared to the same quarter in 2023 [7] Quarterly Net Interest Income - Net interest income for the fourth quarter was $118.06 million, up from $107.73 million in the fourth quarter of 2023 [6] - The increase was primarily due to higher yields impacting interest income on loans and investment securities [6] Deposits and Loans - Total deposits increased to $14.44 billion, a rise of $0.54 billion, or 3.92%, compared to the previous year [7][21] - Loans held for investment increased by $130.03 million, or 1.15%, from December 31, 2023 [7][21] Asset Quality and Credit Losses - The provision for credit losses was an expense of $1.61 million in the current quarter, compared to a benefit of $1.10 million in the linked quarter [8] - Nonperforming loans were 0.06% of period-end loans at both December 31, 2024, and 2023 [21] Capital Ratios - Common equity tier 1 capital ratio was 12.77%, and total risk-based capital ratio was 15.68% [21] - Book value per share was $28.43, compared to $27.24 at December 31, 2023 [21] Investment Securities - Total investment securities were $2.59 billion, with a weighted average duration of 3.3 years [13] - The carrying value of the AFS debt securities portfolio included $155.28 million in net unrealized losses due to changes in interest rates [13]