This year has certainly been one for acquisitions in the banking sector. A recent update from earlier this month placed the total number of banking deals in 2025 at over 150, with the combined valueI have been involved in the financial world for over 20 years with experience as an advisor, teacher, and writer. I am a full believer in the free-market system and that financial markets are efficient with most stocks reflecting their real current value. The best opportunities for profits on individual stocks co ...

RALEIGH, N.C., Dec. 10, 2025 /PRNewswire/ -- Shareholders of Dogwood State Bank (OTCQX: DSBX) ("Dogwood" or the "Bank") approved the previously announced merger of Dogwood into TowneBank (NASDAQ: TOWN) at a special meeting of shareholders on December 3, 2025. The parties expect the merger to close early in the first quarter of 2026 subject to satisfaction of customary closing conditions, including the receipt of all required regulatory approvals. Steve Jones, CEO of Dogwood, stated, "We are pleased that ou ...

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Core Insights - TowneBank reported quarterly earnings of $0.83 per share, exceeding the Zacks Consensus Estimate of $0.75 per share, and showing an increase from $0.58 per share a year ago, resulting in an earnings surprise of +10.67% [1] - The bank's revenues for the quarter ended September 2025 were $216.75 million, slightly missing the Zacks Consensus Estimate by 0.62%, but up from $175.63 million year-over-year [2] - TowneBank has surpassed consensus EPS estimates in all four of the last quarters and has topped revenue estimates three times during the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.72, with expected revenues of $223.3 million, while the estimate for the current fiscal year is $2.93 on revenues of $837.8 million [7] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Industry Context - The Banks - Southeast industry, to which TowneBank belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Insights - TowneBank reported a net income of $38.98 million, or $0.51 per diluted share, for Q3 2025, a decrease from $42.95 million, or $0.57 per diluted share, in Q3 2024. However, core earnings (non-GAAP) increased to $63.45 million, or $0.83 per diluted share, compared to $43.39 million, or $0.58 per diluted share, in the same quarter last year [1][6][24]. Financial Performance - Total revenue for Q3 2025 was $215.67 million, reflecting a year-over-year increase of 23.58% or $41.15 million [6][24]. - Net interest income rose to $146.95 million, up from $112.28 million in Q3 2024, driven by increased interest income and lower deposit costs [7][12]. - Noninterest income increased by $6.48 million, or 10.41%, totaling $68.71 million compared to $62.24 million in Q3 2024 [12][19]. Asset and Deposit Growth - Total deposits reached $16.53 billion, an increase of $2.17 billion, or 15.09%, compared to Q3 2024 [6][19]. - Loans held for investment increased to $13.38 billion, a rise of $1.97 billion, or 17.23%, year-over-year [19][30]. - Noninterest-bearing deposits grew by 20.43% to $5.14 billion, representing 31.09% of total deposits [19][30]. Acquisition Impact - The acquisition of Old Point Financial Corporation was completed in September 2025, adding $961.35 million in loans, $208.83 million in securities, and $1.21 billion in deposits [6][19]. - The integration of Village Bank and Trust Financial Corp. was largely completed, with ongoing efforts to finalize the Dogwood partnership and integrate Old Point systems expected in early 2026 [4][6]. Credit Quality and Provisions - The quarterly provision for credit losses was an expense of $15.28 million, compared to a benefit of $1.10 million in the prior year quarter [12][19]. - Nonperforming assets were $10.38 million, or 0.05% of total assets, an increase from $7.47 million, or 0.04%, at September 30, 2024 [19][30]. Capital Ratios - Common equity tier 1 capital ratio stood at 11.18%, while the total risk-based capital ratio was 13.99% [19][30]. - Book value per common share increased to $30.38 from $28.59 a year earlier [19][30].

Company Overview - TowneBank (TOWN) is a community bank headquartered in Portsmouth, experiencing a price change of -1.5% this year [3] - The bank currently pays a dividend of $0.27 per share, resulting in a dividend yield of 3.22%, which is higher than the Banks - Southeast industry's yield of 2.36% and the S&P 500's yield of 1.48% [3] Dividend Performance - TowneBank's annualized dividend is $1.08, reflecting an 8% increase from the previous year [4] - Over the last five years, the bank has increased its dividend four times, achieving an average annual increase of 8.72% [4] - The current payout ratio is 41%, indicating that the bank pays out 41% of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - The Zacks Consensus Estimate for TowneBank's earnings in 2025 is $2.93 per share, with an expected increase of 34.40% from the previous year [5] - Future dividend growth will depend on earnings growth and the payout ratio [4] Investment Considerations - TowneBank is considered a compelling investment opportunity due to its strong dividend performance and current Zacks Rank of 3 (Hold) [6] - Income investors should note that high-yielding stocks may face challenges during periods of rising interest rates [6]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for TowneBank, with a focus on how actual results compare to estimates, which could significantly impact stock price [1][2]. Earnings Expectations - TowneBank is expected to report quarterly earnings of $0.75 per share, reflecting a year-over-year increase of +29.3% [3]. - Revenues are projected to be $218.1 million, representing a 24.2% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - The Most Accurate Estimate for TowneBank matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with positive readings being more predictive of earnings beats [8][9]. - TowneBank's current Zacks Rank is 3, which complicates predictions regarding an earnings beat [11]. Historical Performance - In the last reported quarter, TowneBank exceeded the expected earnings of $0.69 per share by delivering $0.81, resulting in a surprise of +17.39% [12]. - Over the past four quarters, TowneBank has beaten consensus EPS estimates three times [13]. Conclusion - While TowneBank does not appear to be a strong candidate for an earnings beat, investors should consider other factors before making investment decisions [16].

Company Overview - TowneBank (TOWN) is based in Portsmouth and operates in the Finance sector, with a year-to-date share price change of 1.09% [3] - The company currently pays a dividend of $0.27 per share, resulting in a dividend yield of 3.14%, which is higher than the Banks - Southeast industry's yield of 2.28% and the S&P 500's yield of 1.5% [3] Dividend Performance - TowneBank's annualized dividend of $1.08 has increased by 8% from the previous year [4] - Over the last five years, the company has raised its dividend four times, achieving an average annual increase of 8.72% [4] - The current payout ratio is 41%, indicating that the company pays out 41% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate predicts earnings of $3.00 per share, reflecting a year-over-year growth rate of 37.61% [5] Investment Considerations - TowneBank is considered a compelling investment opportunity due to its strong dividend profile and favorable earnings growth outlook [6] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a stable investment position [6]

Company Overview - TowneBank (TOWN) is a community bank headquartered in Portsmouth, operating in the Finance sector [3] - The stock has experienced a price change of 5.58% since the beginning of the year [3] Dividend Information - TowneBank currently pays a dividend of $0.27 per share, resulting in a dividend yield of 3%, which is higher than the Banks - Southeast industry's yield of 2.23% and the S&P 500's yield of 1.51% [3] - The company's annualized dividend of $1.08 has increased by 8% from the previous year [4] - Over the last five years, TowneBank has raised its dividend four times, achieving an average annual increase of 8.72% [4] - The current payout ratio is 41%, indicating that the company pays out 41% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for TowneBank's earnings in 2025 is $3.00 per share, reflecting a year-over-year earnings growth rate of 37.61% [5] Investment Appeal - TowneBank is considered an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [6]

Core Viewpoint - TowneBank has successfully completed its merger with Old Point Financial Corporation, enhancing its market position in the Hampton Roads MSA through the addition of a high-quality core deposit franchise [1][2]. Company Overview - TowneBank, founded in 1999, focuses on building relationships and offers a comprehensive range of banking and financial services, emphasizing a culture of caring and valuing diverse talents [4]. - As of June 30, 2025, TowneBank has total assets of $18.26 billion, making it one of the largest banks headquartered in Virginia [5]. Merger Details - The merger became effective on September 1, 2025, with Old Point National Bank locations operating as "Old Point National Bank, a Division of TowneBank" until February 2026, when systems will be fully integrated [2]. - Old Point Wealth Management will continue to operate under its brand as part of the TowneBank family [2]. Leadership Changes - Following the merger, Robert F. Shuford, Jr., former chairman and CEO of Old Point, has been appointed as a senior executive vice president and will serve as chairman of the TowneBank Peninsula board starting January 1, 2026 [3]. Community Commitment - Both institutions are committed to serving their communities, employees, and shareholders, aiming to build a stronger future together [3].