Core Viewpoint - TowneBank (TOWN) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, suggesting that upward revisions can lead to higher stock valuations [4][6]. - TowneBank's earnings per share (EPS) estimate for the fiscal year ending December 2025 is projected at $2.74, with a 5.8% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. - The upgrade of TowneBank to a Zacks Rank 2 places it among the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Viewpoint - TowneBank reported quarterly earnings of $0.81 per share, exceeding the Zacks Consensus Estimate of $0.69 per share, and showing an increase from $0.57 per share a year ago, indicating a strong performance in the banking sector [1][2]. Financial Performance - The company achieved revenues of $208.5 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.98%, and up from $176.06 million year-over-year [2]. - Over the last four quarters, TowneBank has exceeded consensus EPS estimates three times and has topped consensus revenue estimates three times as well [2]. Stock Performance and Outlook - TowneBank shares have increased approximately 4.8% since the beginning of the year, while the S&P 500 has gained 7.3%, indicating underperformance relative to the broader market [3]. - The current consensus EPS estimate for the upcoming quarter is $0.73 on revenues of $205.73 million, and for the current fiscal year, it is $2.59 on revenues of $820.55 million [7]. Industry Context - The Zacks Industry Rank for Banks - Southeast places it in the top 14% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8]. - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact TowneBank's stock performance [5].

Core Viewpoint - TowneBank reported a record revenue quarter with total revenues of $207.44 million, an increase of 18.56% compared to the same quarter in 2024, driven by organic loan growth and strategic partnerships [2][6][26]. Financial Performance - Net income for the quarter ended June 30, 2025, was $38.84 million, or $0.51 per diluted share, down from $42.86 million, or $0.57 per diluted share, in the same quarter of 2024 [1][26]. - Core earnings (non-GAAP) were $61.34 million, or $0.81 per diluted share, compared to $42.56 million, or $0.57 per diluted share, for the same quarter in 2024 [1][26]. - Net interest income increased by $28.17 million, driven by higher interest income and lower deposit costs [6][7]. Loan and Deposit Growth - Total loans held for investment reached $12.36 billion, an increase of $0.91 billion, or 7.93%, compared to June 30, 2024 [19][26]. - Total deposits increased by $1.06 billion, or 7.40%, compared to the same quarter in 2024, totaling $15.33 billion [6][19][26]. - Noninterest-bearing deposits increased by 10.47% year-over-year, representing 31.02% of total deposits [6][19]. Strategic Partnerships and Acquisitions - The acquisition of Village Bank was completed in April 2025, contributing significantly to earnings momentum [4][6]. - The company is focused on integrating its recent partnership with Old Point Financial Corporation, expected to close in the third quarter of 2025 [4][6]. Asset Quality and Credit Losses - The quarterly provision for credit losses was $6.41 million, compared to a benefit of $177 thousand in the prior year quarter [12][19]. - Nonperforming assets were $9.29 million, or 0.05% of total assets, an increase from $7.16 million, or 0.04%, at June 30, 2024 [19][27]. Capital and Regulatory Ratios - Common equity tier 1 capital ratio was 11.77%, and total risk-based capital ratio was 14.49% [19][26]. - Book value per common share increased to $29.58 from $27.62 a year ago [26]. Noninterest Income - Total noninterest income rose to $70.23 million, an increase of 6.53% compared to the same quarter in 2024 [12][19]. - Net insurance commissions increased by 6.85% to $25.68 million, driven by organic growth in property and casualty commissions [12][19]. Efficiency and Cost Management - Total noninterest expense increased by 21.52% to $150.67 million, primarily due to acquisition-related expenses and growth in salaries and employee benefits [12][19]. - The efficiency ratio was reported at 70.71%, indicating the proportion of expenses to revenue [26].

Company Overview - TowneBank (TOWN) is a community bank headquartered in Portsmouth, operating in the Finance sector with a year-to-date stock price change of 4.23% [3] - The company currently pays a dividend of $0.27 per share, resulting in a dividend yield of 3.04%, which is higher than the Banks - Southeast industry's yield of 2.34% and the S&P 500's yield of 1.54% [3] Dividend Performance - TowneBank's annualized dividend of $1.08 has increased by 8% from the previous year, with a historical average annual increase of 8.72% over the last five years [4] - The current payout ratio is 42%, indicating that the company distributes 42% of its trailing 12-month earnings per share as dividends [4] Earnings Growth and Future Outlook - The Zacks Consensus Estimate for TowneBank's earnings in 2025 is projected at $2.59 per share, reflecting a year-over-year earnings growth rate of 18.81% [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 profile 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]

Financial Performance - TowneBank's total assets reached $17.1 billion as of Q2-FY24 [9], with total loans at $11.5 billion and total deposits at $14.3 billion [9] - The bank reported a Core Return on Average Assets (ROAA) of 1.01% and a Core Return on Average Tangible Common Equity (ROTCE) of 12.08% [9] - Net Interest Margin (NIM) on a fully tax-equivalent basis was 2.89%, while noninterest-bearing deposits accounted for 30.2% of total deposits [9] - For Q2-FY24, net income attributable to TowneBank was $42.9 million, a 2.7% increase year-over-year [47] - Earnings per share (diluted) for Q2-FY24 were $0.57, up 1.8% year-over-year [47] Business Segments - The bank's revenue mix is diversified, with net interest income accounting for 62% and noninterest income for 38% YTD Q2-FY24 [24] - Insurance segment contributes 39% to the total noninterest income YTD Q2-FY24 [26] - Towne Insurance is the largest bank-owned insurance company in the country [105], with insurance revenue of $29.6 million in Q2-24 [105] Balance Sheet and Asset Quality - Noninterest-bearing deposits accounted for 30.15% of total deposits in Q2-FY24 [47] - Nonperforming assets represent 0.04% of total assets [47] - The bank's loan-to-deposit ratio was 80.24% [47] Capital and Liquidity - The total risk-based capital ratio was 15.34% [47] - The tangible common equity to tangible assets ratio was 9.37% [47] - Total liquidity sources were $6.471 billion [171], covering 105% of adjusted uninsured deposits [172]

Financial Performance - TowneBank's total assets reached $17.25 billion, a 2.4% increase year-over-year[12] - Net income attributable to TowneBank was $41.26 million for the quarter, a 43.3% increase year-over-year[12] - Earnings per share-diluted increased to $0.55, a 41.0% increase year-over-year[12] - The net interest margin (TE) was 3.02%, a 16 bps increase year-over-year[12] Deposits and Loans - Total deposits amounted to $14.44 billion, a 3.9% increase year-over-year[12] - Total loans reached $11.46 billion, a 1.1% increase year-over-year[12] - Noninterest bearing deposits accounted for 29.46% of total deposits[12] Noninterest Income and Expense - Noninterest income totaled $59.10 million, a 23.6% increase year-over-year[14] - Noninterest expense was $127.44 million, a 4.6% increase year-over-year[14] Asset Quality and Capital - Nonperforming assets represented 0.05% of total assets[12] - The total risk-based capital ratio was 15.68%[12] Outlook - The company is targeting annualized loan growth in the mid-single digits[161] - Net interest income is expected to range between $510 million and $520 million for FY2025[161]

Financial Performance - TowneBank reported total assets of $1751 billion for Q1-FY25, a 37% increase year-over-year[9] - Net income attributable to TowneBank was $5059 million in Q1-FY25, up 459% from $3469 million in Q1-FY24[12, 14] - Core earnings per share-diluted reached $068 in Q1-FY25, compared to $048 in Q1-FY24, representing a 417% increase[14] - The return on average tangible common equity was 1330% for Q1-FY25[9] Balance Sheet & Lending - Total loans amounted to $1165 billion in Q1-FY25, reflecting a 17% increase year-over-year[9, 12] - Total deposits reached $1461 billion in Q1-FY25, a 34% increase compared to Q1-FY24[9, 12] - Noninterest-bearing deposits accounted for 30% of total deposits in Q1-FY25[9] - The loan-to-deposit ratio stood at 7977% in Q1-FY25[12] Non-Interest Income - Noninterest income totaled $7157 million in Q1-FY25, a 120% increase compared to $6388 million in Q1-FY24[14, 55] - Insurance commissions income net was $2642 million in Q1-FY25, up 35% year-over-year[55]

What's Next for TowneBank? TowneBank (TOWN) came out with quarterly earnings of $0.68 per share, beating the Zacks Consensus Estimate of $0.61 per share. This compares to earnings of $0.48 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 11.48%. A quarter ago, it was expected that this community bank would post earnings of $0.45 per share when it actually produced earnings of $0.55, delivering a surprise of 22.22%. Over the la ...

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]