TowneBank Reports Full Year and Fourth Quarter Financial Results for 2024
TowneBank (TOWN) reported full-year 2024 earnings of $161.76 million ($2.15 per diluted share), up from $153.72 million ($2.06 per diluted share) in 2023. Fourth quarter 2024 earnings were $41.27 million ($0.55 per diluted share), compared to $28.80 million ($0.39 per diluted share) in Q4 2023.
Total revenues slightly decreased to $693.75 million in 2024. While net interest income declined by $15.18 million due to higher deposit costs, noninterest income grew by $14.80 million, driven by residential mortgage banking and insurance commissions. Total deposits increased by $0.54 billion to $14.44 billion, representing a 3.92% growth. Loans held for investment grew by $130.03 million, or 1.15%.
The company maintained strong asset quality with nonperforming assets at 0.05% of total assets. The net interest margin was 2.87% for 2024, compared to 3.03% in 2023. TowneBank expects to close its previously announced acquisition of Village Bank by the end of first quarter 2025.
TowneBank (TOWN) ha riportato un utile netto per l'intero anno 2024 di 161,76 milioni di dollari (2,15 dollari per azione diluita), in aumento rispetto ai 153,72 milioni di dollari (2,06 dollari per azione diluita) del 2023. Gli utili del quarto trimestre 2024 sono stati di 41,27 milioni di dollari (0,55 dollari per azione diluita), rispetto ai 28,80 milioni di dollari (0,39 dollari per azione diluita) del quarto trimestre 2023.
I ricavi totali sono leggermente diminuiti a 693,75 milioni di dollari nel 2024. Sebbene i proventi netti da interessi siano diminuiti di 15,18 milioni di dollari a causa di costi di deposito più elevati, i proventi non da interessi sono aumentati di 14,80 milioni di dollari, grazie alla banca di mutui residenziali e alle commissioni assicurative. I depositi totali sono aumentati di 0,54 miliardi di dollari, raggiungendo 14,44 miliardi di dollari, con una crescita del 3,92%. I prestiti detenuti per investimento sono cresciuti di 130,03 milioni di dollari, ovvero l'1,15%.
L'azienda ha mantenuto una forte qualità degli attivi, con attivi non produttivi allo 0,05% del totale degli attivi. Il margine d'interesse netto era del 2,87% nel 2024, rispetto al 3,03% nel 2023. TowneBank prevede di concludere l'acquisizione precedentemente annunciata della Village Bank entro la fine del primo trimestre 2025.
TowneBank (TOWN) reportó ganancias anuales para 2024 de 161,76 millones de dólares (2,15 dólares por acción diluida), en comparación con los 153,72 millones de dólares (2,06 dólares por acción diluida) en 2023. Las ganancias del cuarto trimestre de 2024 fueron de 41,27 millones de dólares (0,55 dólares por acción diluida), comparado con los 28,80 millones de dólares (0,39 dólares por acción diluida) en el cuarto trimestre de 2023.
Los ingresos totales disminuyeron levemente a 693,75 millones de dólares en 2024. Mientras que los ingresos netos por intereses cayeron en 15,18 millones de dólares debido a costos de depósitos más altos, los ingresos no por intereses crecieron en 14,80 millones de dólares, impulsados por la banca hipotecaria residencial y las comisiones de seguros. Los depósitos totales incrementaron en 0,54 mil millones de dólares a 14,44 mil millones de dólares, representando un crecimiento del 3,92%. Los préstamos mantenidos para inversión crecieron en 130,03 millones de dólares, o 1,15 %.
La empresa mantuvo una fuerte calidad de activos, con activos no desempeñados al 0,05 % de los activos totales. El margen de interés neto fue del 2,87 % para 2024, en comparación con el 3,03 % en 2023. TowneBank espera cerrar la adquisición previamente anunciada de Village Bank para finales del primer trimestre de 2025.
타운뱅크 (TOWN)는 2024년 연간 순이익이 1억 6천 176만 달러(희석 주당 2.15달러)로, 2023년의 1억 5천 372만 달러(희석 주당 2.06달러)에서 증가했다고 보고했습니다. 2024년 4분기 순이익은 4천 127만 달러(희석 주당 0.55달러)로, 2023년 4분기의 2천 880만 달러(희석 주당 0.39달러)와 비교되었습니다.
총 수익은 2024년에 6억 9천 375만 달러로 약간 감소했습니다. 예금 비용 증가로 인해 순이자 수익은 1천 518만 달러 감소했지만, 주택 모기지 은행 및 보험 수수료에 의해 비이자 수익은 1천 480만 달러 증가했습니다. 총 예금은 5억 4천만 달러 증가하여 1천 444억 달러에 도달했으며, 이는 3.92%의 성장률을 나타냅니다. 투자용 대출도 1억 3천 3만 달러, 즉 1.15% 증가했습니다.
회사는 비수익 자산이 총 자산의 0.05%에 해당하는 강력한 자산 품질을 유지했습니다. 2024년의 순이자 마진은 2.87%로, 2023년의 3.03%와 비교되었습니다. 타운뱅크는 2025년 1분기 말까지 마을은행의 인수를 마무리할 것으로 예상하고 있습니다.
TowneBank (TOWN) a annoncé un bénéfice net annuel pour 2024 de 161,76 millions de dollars (2,15 dollars par action diluée), en hausse par rapport à 153,72 millions de dollars (2,06 dollars par action diluée) en 2023. Le bénéfice du quatrième trimestre 2024 s'élevait à 41,27 millions de dollars (0,55 dollars par action diluée), contre 28,80 millions de dollars (0,39 dollars par action diluée) au 4e trimestre 2023.
Les revenus totaux ont légèrement diminué, atteignant 693,75 millions de dollars en 2024. Bien que les revenus nets d'intérêts aient baissé de 15,18 millions de dollars en raison de coûts de dépôt plus élevés, les revenus non d'intérêts ont augmenté de 14,80 millions de dollars, soutenus par le prêt hypothécaire résidentiel et les commissions d'assurance. Les dépôts totaux ont augmenté de 0,54 milliard de dollars pour atteindre 14,44 milliards de dollars, représentant une croissance de 3,92 %. Les prêts détenus pour investissement ont augmenté de 130,03 millions de dollars, soit 1,15 %.
L'entreprise a maintenu une forte qualité d'actifs, avec des actifs non performants représentant 0,05 % des actifs totaux. La marge d'intérêt nette était de 2,87 % pour 2024, par rapport à 3,03 % en 2023. TowneBank prévoit de finaliser son acquisition précédemment annoncée de Village Bank d'ici la fin du premier trimestre 2025.
TowneBank (TOWN) meldete für das Gesamtjahr 2024 einen Gewinn von 161,76 Millionen Dollar (2,15 Dollar pro verwässerter Aktie), ein Anstieg von 153,72 Millionen Dollar (2,06 Dollar pro verwässerter Aktie) im Jahr 2023. Der Gewinn im vierten Quartal 2024 betrug 41,27 Millionen Dollar (0,55 Dollar pro verwässerter Aktie), verglichen mit 28,80 Millionen Dollar (0,39 Dollar pro verwässerter Aktie) im Q4 2023.
Die Gesamteinnahmen sanken leicht auf 693,75 Millionen Dollar im Jahr 2024. Während die Nettozinseinnahmen aufgrund höherer Einlagekosten um 15,18 Millionen Dollar zurückgingen, wuchsen die nichtzinsbasierten Einnahmen um 14,80 Millionen Dollar, angetrieben durch die Wohnungsbaufinanzierung und Versicherungsprovisionen. Die Gesamteinlagen stiegen um 0,54 Milliarden Dollar auf 14,44 Milliarden Dollar, was einem Wachstum von 3,92 % entspricht. Die für Investitionen gehaltenen Kredite stiegen um 130,03 Millionen Dollar, also um 1,15 %.
Das Unternehmen hielt eine starke Vermögensqualität mit nicht leistungsfähigen Vermögenswerten von 0,05 % der Gesamtaktiva. Die Nettozinsspanne betrug 2,87 % für 2024, verglichen mit 3,03 % im Jahr 2023. TowneBank erwartet, die zuvor angekündigte Übernahme der Village Bank bis Ende des ersten Quartals 2025 abzuschließen.
- Year-over-year earnings increase from $153.72M to $161.76M
- Q4 2024 earnings up 43.3% to $41.27M from $28.80M in Q4 2023
- Total deposits grew 3.92% to $14.44B
- Strong asset quality with nonperforming assets at only 0.05% of total assets
- Insurance segment revenue increased to $118.11M from $109.46M
- Net interest income decreased by $15.18M due to higher deposit costs
- Net interest margin declined to 2.87% from 3.03% year-over-year
- Noninterest-bearing deposits declined 2.06% to $4.25B
- Total revenues slightly decreased to $693.75M from $694.12M
Insights
TowneBank delivered a robust performance in 2024, with earnings per share increasing
Several key metrics deserve attention:
- The bank's diversified revenue model proved valuable, with noninterest income growth of
23.61% in Q4 offsetting pressure on interest income. The insurance segment's revenue reached$118.11 million , up from$109.46 million in 2023. - Deposit composition shows interesting dynamics - while total deposits grew by
$544.09 million , noninterest-bearing deposits declined to29.46% of total deposits from31.26% last year, reflecting the challenging rate environment. - Asset quality remains exceptional with nonperforming assets at just
0.05% of total assets and an allowance for credit losses covering nonperforming loans 16.69 times. - Capital levels are strong with a CET1 ratio of
12.77% , providing ample buffer for the upcoming Village Bank acquisition and future growth.
The mortgage banking segment showed signs of revival with volume reaching
The efficiency in managing deposit costs is noteworthy - total cost of deposits decreased to
SUFFOLK, Va., Jan. 22, 2025 (GLOBE NEWSWIRE) -- TowneBank (the "Company" or "Towne") (Nasdaq: TOWN) today reported financial results for the full year and fourth quarter ended December 31, 2024. For the year ended December 31, 2024, earnings were
"Diluted earnings per share increased
Annual Highlights for 2024 Compared to 2023:
- Total revenues decreased slightly to
$693.75 million , compared to$694.12 million in the prior year. Net interest income decreased$15.18 million as higher deposit costs outpaced increases in interest income. Noninterest income increased$14.80 million driven by growth in residential mortgage banking income and insurance commissions, serving to largely offset the decline in net interest income. - The insurance segment's gross revenue was
$118.11 million compared to$109.46 million in 2023. - Loans held for investment increased
$130.03 million , or1.15% , from December 31, 2023. - Total deposits were
$14.44 billion , an increase of$0.54 billion , or3.92% , compared to prior year. - As rates continued to rise, noninterest-bearing deposits declined
2.06% to$4.25 billion driven by a mix shift into interest-bearing accounts. Noninterest-bearing deposits represented29.46% of total deposits at December 31, 2024. - Return on average common shareholders' equity was
7.82% , and return on average tangible common shareholders' equity (non-GAAP) was11.11% . - Net interest margin was
2.87% and taxable equivalent net interest margin (non-GAAP) was2.90% compared to a prior year net interest margin of3.03% and taxable equivalent net interest margin (non-GAAP) of3.06% . - Effective tax rate of
14.60% compared to16.82% in 2023. The decline in effective tax rate was primarily due to the impact on state and federal taxes from the increase in credits and losses related to LIHTC investment properties placed in service during the year.
Highlights for Fourth Quarter 2024:
- Total revenues were
$177.16 million in fourth quarter 2024, an increase of$21.61 million , or13.90% from the prior year quarter. This increase was attributable to a combination of margin expansion and growth in noninterest income. Net interest income increased$10.32 million , or9.58% , driven by increases in loan interest income offset by only marginal increases in deposit costs between quarters. Noninterest income increased$11.29 million , or23.61% , in the quarterly comparison. - Loans held for investment increased
$46.54 million , or1.62% on an annualized basis, from September 30, 2024. - Total deposits increased
$74.13 million , or2.05% on an annualized basis, compared to September 30, 2024. - Noninterest-bearing deposits decreased
$14.58 million , or1.36% on an annualized basis, compared to the linked quarter. - In the quarter ended December 31, 2024, annualized return on average common shareholders' equity was
7.70% and annualized return on average tangible common shareholders' equity (non-GAAP) was10.79% . - Net interest margin was
2.99% and taxable equivalent net interest margin (non-GAAP) was3.02% compared to the prior year quarter net interest margin of2.83% and taxable equivalent net interest margin (non-GAAP) of2.86% . - Effective tax rate of
13.92% compared to8.46% in fourth quarter 2023 and11.52% in the linked quarter. The increase in the effective tax rate from fourth quarter 2023 to 2024 was due to a fourth quarter adjustment in 2023 to deferred income taxes related to the sale of BHHS that decreased the tax rate. The higher tax rate in the fourth quarter versus the linked quarter was due to an increase in state tax expense.
“As we look ahead to next year, we are excited about closing our partnership with Village Bank during the first quarter. We are optimistic about loan and deposit growth opportunities across our banking footprint which operates in some of the most vibrant markets in the country. We also plan to aggressively evaluate opportunities for enhancing our fee based businesses on an organic basis coupled with a disciplined acquisition strategy," said William I. Foster III, President and Chief Executive Officer.
Quarterly Net Interest Income:
- Net interest income was
$118.06 million compared to$107.73 million for the quarter ended December 31, 2023. Higher yields impacting interest income on loan and investment securities were the primary source of this growth. - Taxable equivalent net interest margin (non-GAAP) was
3.02% , including purchase accounting accretion of 4 basis points, compared to2.86% , including purchase accounting accretion of 4 basis points, for fourth quarter 2023. - On an average basis, loans held for investment had a yield of
5.41% , which represented72.90% of earning assets in the fourth quarter of 2024, compared to a yield of5.22% , and74.39% of earning assets in the fourth quarter of 2023. - Total cost of deposits decreased to
2.07% from2.29% in the linked quarter and2.09% in the quarter ended December 31, 2023. Deposits costs began declining in third quarter 2024 as the Federal Reserve lowered short term rates by 100 basis points in the final four months of 2024. - Average interest-earning assets totaled
$15.71 billion at December 31, 2024 compared to$15.10 billion at December 31, 2023, an increase of4.09% . - Average interest-bearing liabilities totaled
$10.46 billion , an increase of$0.59 billion , or5.96% , compared to the prior year.
Quarterly Provision for 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, and an expense of$2.45 million one year ago. - The allowance for credit losses on loans increased
$0.73 million , compared to the linked quarter. The increase in the allowance was driven by a combination of modest loan growth and an increase to our weightings of the more adverse macroeconomic forecast scenarios utilized in our models. - Net charge-offs were
$382 thousand compared to$68 thousand one year prior and$677 thousand in the linked quarter. The ratio of net charge-offs to average loans on an annualized basis was0.01% in fourth quarter 2024,0.00% in fourth quarter 2023, and0.02% in the linked quarter. - The allowance for credit losses on loans represented
1.08% of total loans at both December 31, 2024 and September 30, 2024, compared to1.12% at December 31, 2023. The allowance for credit losses on loans was 16.69 times nonperforming loans compared to 18.70 times at September 30, 2024 and 18.48 times at December 31, 2023.
Quarterly Noninterest Income:
- Total noninterest income was
$59.10 million compared to$47.81 million in 2023, an increase of$11.29 million , or23.61% . - Residential mortgage banking income was
$11.27 million compared to$8.04 million in fourth quarter 2023. Loan volume in the current quarter was$565.43 million , with purchase activity comprising89.46% . Loan volume in fourth quarter 2023 was$428.95 million , with purchase activity of95.06% . Home purchases appear to be on the rise despite a continuation of elevated mortgage rates and home sale inventory limitations. - Gross margins on residential mortgages increased 19 basis points from
3.06% in fourth quarter 2023 to3.25% in the current quarter. Gross margins declined 3 basis points from3.28% , when compared to the linked quarter. - Property management fee revenue increased
11.25% , or$828 thousand , in comparison to fourth quarter 2023 driven by an acquisition in early 2024. - Total insurance commissions and other income increased
$2.06 million , or9.70% , to$23.27 million in the fourth quarter of 2024 due to organic growth. - Investment commissions increased
$0.82 million , or34.24% , driven by higher production levels.
Quarterly Noninterest Expense:
- Total noninterest expense was
$127.44 million compared to$121.90 million , an increase of$5.55 million , or4.55% . This reflects increases in salary and benefits expense of$8.36 million , occupancy expense of$0.51 million , and furniture and equipment expense of$0.41 million . - Salaries and benefits expense increases were driven by annual base salary adjustments that went into effect October 2024 and increases in performance based compensation and employee benefit costs.
- Increases in occupancy expense and furniture and equipment expense were driven by Company expansion and relocation activities. Towne has opened two full service branches since November 2023, completed a branch relocation in Greenville, NC, and relocated our regional headquarters in Greensboro, NC.
Consolidated Balance Sheet Highlights:
- Total assets were
$17.25 billion at December 31, 2024, an increase of2.45% , compared to$16.84 billion at December 31, 2023. The increase was driven by modest growth in loans and investment securities. - Loans held for investment increased
$130.03 million , or1.15% , compared to year end 2023 and$46.54 million compared to the linked quarter,1.62% on an annualized basis. Management has focused on maintaining a strong balance sheet in 2024 by controlling loan growth through pricing. - Mortgage loans held for sale increased
$50.47 million , or33.65% , compared to prior year but declined$63.86 million , or24.16% , compared to the linked quarter due to seasonality. - Total deposits increased
$544.09 million , or3.92% , compared to December 31, 2023 and$74.13 million , or0.52% , or2.05% on an annualized basis compared to the linked quarter. - Noninterest-bearing deposits decreased
$89.65 million , or2.06% , compared to prior year, and$14.58 million , or0.34% , compared to the linked quarter. - Total loans held for investment to total deposits were
79.37% compared to79.46% at September 30, 2024 and81.54% at December 31, 2023. - Total borrowings decreased
$195.68 million , or39.73% , from prior year.
Investment Securities:
- Total investment securities were
$2.59 billion compared to$2.60 billion at September 30, 2024 and$2.64 billion at December 31, 2023. The weighted average duration of the portfolio at December 31, 2024 was 3.3 years. The carrying value of the AFS debt securities portfolio included$155.28 million in net unrealized losses, related to changes in interest rates, at December 31, 2024 compared to$162.12 million in net unrealized losses at December 31, 2023.
Loans and Asset Quality:
- Total loans held for investment were
$11.46 billion at December 31, 2024 compared to$11.41 billion at September 30, 2024 and$11.33 billion at December 31, 2023. - Nonperforming assets were
$7.87 million , or0.05% of total assets, compared to$7.75 million , or0.05% of total assets, at December 31, 2023. - Nonperforming loans were
0.06% of period end loans at both December 31, 2024 and 2023. - Foreclosed property which consisted of repossessed autos at December 31, 2024 totaled
$0.44 million , declining from$0.91 million at December 31, 2023.
Deposits and Borrowings:
- Total deposits were
$14.44 billion compared to$14.36 billion at September 30, 2024 and$13.89 billion at December 31, 2023. - Noninterest-bearing deposits were
29.46% of total deposits at December 31, 2024 compared to29.71% at September 30, 2024 and31.26% at December 31, 2023. - Total borrowings were
$296.90 million compared to$290.82 million at September 30, 2024 and$492.58 million at December 31, 2023.
Capital:
- Common equity tier 1 capital ratio of
12.77% (1). - Tier 1 leverage capital ratio of
10.36% (1). - Tier 1 risk-based capital ratio of
12.89% (1). - Total risk-based capital ratio of
15.68% (1). - Book value per share was
$28.43 compared to$28.59 at September 30, 2024 and$27.24 at December 31, 2023. - Tangible book value per share (non-GAAP) was
$21.55 compared to$21.65 at September 30, 2024 and$20.28 at December 31, 2023.
(1) Preliminary.
Acquisition of Village Bank and Trust Financial Corp:
We anticipate the previously announced acquisition of Village Bank and Trust Financial Corp. and its wholly owned bank subsidiary, Village Bank to close by the end of first quarter 2025.
Annual Meeting of Shareholders:
TowneBank intends to hold its 2025 Annual Meeting of Shareholders at 11:30 a.m. on Wednesday, May 14, 2025 at the Virginia Beach Convention Center, 1000 19th Street in Virginia Beach, Virginia.
About TowneBank:
Founded in 1999, TowneBank is a company built on relationships, offering a full range of banking and other financial services, with a focus of serving others and enriching lives. Dedicated to a culture of caring, Towne values all employees and members by embracing their diverse talents, perspectives, and experiences.
Now celebrating 25 years, TowneBank operates over 50 banking offices throughout Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina – serving as a local leader in promoting the social, cultural, and economic growth in each community. Towne offers a competitive array of business and personal banking solutions, delivered with only the highest ethical standards. Experienced local bankers providing a higher level of expertise and personal attention with local decision-making are key to the TowneBank strategy. TowneBank has grown its capabilities beyond banking to provide expertise through its affiliated companies that include Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices RW Towne Realty, Towne 1031 Exchange, LLC, and Towne Vacations. With total assets of
Non-GAAP Financial Measures:
This press release contains certain financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such non-GAAP financial measures include the following: core operating earnings, fully tax-equivalent net interest margin, tangible book value per common share, total risk-based capital ratio, tier one leverage ratio, tier one capital ratio, and the tangible common equity to tangible assets ratio. Management uses these non-GAAP financial measures to assess the performance of TowneBank’s core business and the strength of its capital position. Management believes that these non-GAAP financial measures provide meaningful additional information about TowneBank to assist investors in evaluating operating results, financial strength, and capitalization. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant charges for credit costs and other factors. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The computations of the non-GAAP financial measures used in this presentation are referenced in a footnote or in the appendix to this presentation.
Forward-Looking Statements:
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 words as: "believe," "expect," "anticipate," "intend," "plan,” "estimate," or words of similar meaning, or future or conditional terms, such as "will," "would," "should," "could," "may," "likely," "probably," or "possibly." These statements may address issues that involve significant risks, uncertainties, estimates, and assumptions made by management. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include among others, competitive pressures in the banking industry that may increase significantly; changes in the interest rate environment that may reduce margins and/or the volumes and values of loans made or held as well as the value of other financial assets held; an unforeseen outflow of cash or deposits or an inability to access the capital markets, which could jeopardize our overall liquidity or capitalization; changes in the creditworthiness of customers and the possible impairment of the collectability of loans; insufficiency of our allowance for credit losses due to market conditions, inflation, changing interest rates or other factors; adverse developments in the financial industry generally, such as the recent bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer and client behavior; general economic conditions, either nationally or regionally, that may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit or other services; geopolitical instability, including wars, conflicts, civil unrest, and terrorist attacks and the potential impact, directly or indirectly, on our business; the effects of weather-related or natural disasters, which may negatively affect our operations and/or our loan portfolio and increase our cost of conducting business; public health events (such as the COVID-19 pandemic) and governmental and societal responses to them; changes in the legislative or regulatory environment, including changes in accounting standards and tax laws, that may adversely affect our business; our ability to close the transaction with Village Bank when expected or at all because required approvals and other conditions to closing are not received or satisfied on the proposed terms or on the anticipated schedule; our integration of Village Bank's business to the extent that it may take longer or be more difficult, time-consuming, or costly to accomplish than expected; deposit attrition, operating costs, customer losses, and business disruption following the Village Bank transaction, including adverse effects on relationships with employees and customers; costs or difficulties related to the integration of the businesses we have acquired may be greater than expected; expected growth opportunities or cost savings associated with pending or recently completed acquisitions may not be fully realized or realized within the expected time frame; cybersecurity threats or attacks, whether directed at us or at vendors or other third parties with which we interact, the implementation of new technologies, and the ability to develop and maintain reliable electronic systems; our competitors may have greater financial resources and develop products that enable them to compete more successfully; changes in business conditions; changes in the securities market; and changes in our local economy with regard to our market area. Any forward-looking statements made by us or on our behalf speak only as of the date they are made or as of the date indicated, and we do not undertake any obligation to update forward-looking statements as a result of new information, future events, or otherwise. For additional information on factors that could materially influence forward-looking statements included in this report, see the "Risk Factors" in TowneBank’s Annual Report on Form 10-K for the year ended December 31, 2023, and related disclosures in other filings that have been, or will be, filed by TowneBank with the Federal Deposit Insurance Corporation.
Media contact:
G. Robert Aston, Jr., Executive Chairman, 757-638-6780
William I. Foster III, President and Chief Executive Officer, 757-417-6482
Investor contact:
William B. Littreal, Chief Financial Officer, 757-638-6813
| TOWNEBANK | ||||||||||||||||||||
| Selected Financial Highlights (unaudited) | ||||||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | ||||||||||||||||
| Income and Performance Ratios: | ||||||||||||||||||||
| Total revenue | $ | 177,160 | $ | 174,518 | $ | 174,970 | $ | 167,102 | $ | 155,546 | ||||||||||
| Net income | 41,441 | 43,126 | 43,039 | 35,127 | 28,545 | |||||||||||||||
| Net income available to common shareholders | 41,265 | 42,949 | 42,856 | 34,687 | 28,804 | |||||||||||||||
| Net income per common share - diluted | 0.55 | 0.57 | 0.57 | 0.46 | 0.39 | |||||||||||||||
| Book value per common share | 28.43 | 28.59 | 27.62 | 27.33 | 27.24 | |||||||||||||||
| Book value per share - tangible (non-GAAP) | 21.55 | 21.65 | 20.65 | 20.31 | 20.28 | |||||||||||||||
| Return on average assets | 0.95 | % | 1.00 | % | 1.01 | % | 0.83 | % | 0.68 | % | ||||||||||
| Return on average assets - tangible (non-GAAP) | 1.03 | % | 1.09 | % | 1.11 | % | 0.92 | % | 0.77 | % | ||||||||||
| Return on average equity | 7.64 | % | 8.12 | % | 8.43 | % | 6.84 | % | 5.75 | % | ||||||||||
| Return on average equity - tangible (non-GAAP) | 10.68 | % | 11.42 | % | 12.03 | % | 9.87 | % | 8.53 | % | ||||||||||
| Return on average common equity | 7.70 | % | 8.18 | % | 8.49 | % | 6.89 | % | 5.79 | % | ||||||||||
| Return on average common equity - tangible (non-GAAP) | 10.79 | % | 11.54 | % | 12.16 | % | 9.98 | % | 8.62 | % | ||||||||||
| Noninterest income as a percentage of total revenue | 33.36 | % | 35.66 | % | 37.68 | % | 38.23 | % | 30.74 | % | ||||||||||
| Regulatory Capital Ratios (1): | ||||||||||||||||||||
| Common equity tier 1 | 12.77 | % | 12.63 | % | 12.43 | % | 12.20 | % | 12.18 | % | ||||||||||
| Tier 1 | 12.89 | % | 12.76 | % | 12.55 | % | 12.32 | % | 12.29 | % | ||||||||||
| Total | 15.68 | % | 15.54 | % | 15.34 | % | 15.10 | % | 15.06 | % | ||||||||||
| Tier 1 leverage ratio | 10.36 | % | 10.38 | % | 10.25 | % | 10.15 | % | 10.17 | % | ||||||||||
| Asset Quality: | ||||||||||||||||||||
| Allowance for credit losses on loans to nonperforming loans | 16.69x | 18.70x | 19.08x | 18.01x | 18.48x | |||||||||||||||
| Allowance for credit losses on loans to period end loans | 1.08 | % | 1.08 | % | 1.10 | % | 1.10 | % | 1.12 | % | ||||||||||
| Nonperforming loans to period end loans | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | ||||||||||
| Nonperforming assets to period end assets | 0.05 | % | 0.04 | % | 0.04 | % | 0.05 | % | 0.05 | % | ||||||||||
| Net charge-offs (recoveries) to average loans (annualized) | 0.01 | % | 0.02 | % | — | % | 0.02 | % | — | % | ||||||||||
| Net charge-offs (recoveries) | $ | 382 | $ | 677 | $ | (19 | ) | $ | 520 | $ | 68 | |||||||||
| Nonperforming loans | $ | 7,424 | $ | 6,588 | $ | 6,582 | $ | 6,987 | $ | 6,843 | ||||||||||
| Foreclosed property | 443 | 884 | 581 | 780 | 908 | |||||||||||||||
| Total nonperforming assets | $ | 7,867 | $ | 7,472 | $ | 7,163 | $ | 7,767 | $ | 7,751 | ||||||||||
| Loans past due 90 days and still accruing interest | $ | 1,264 | $ | 510 | $ | 368 | $ | 323 | $ | 735 | ||||||||||
| Allowance for credit losses on loans | $ | 123,923 | $ | 123,191 | $ | 125,552 | $ | 125,835 | $ | 126,461 | ||||||||||
| Mortgage Banking: | ||||||||||||||||||||
| Loans originated, mortgage | $ | 385,238 | $ | 421,571 | $ | 430,398 | $ | 289,191 | $ | 302,616 | ||||||||||
| Loans originated, joint venture | 180,188 | 176,612 | 196,583 | 135,197 | 126,332 | |||||||||||||||
| Total loans originated | $ | 565,426 | $ | 598,183 | $ | 626,981 | $ | 424,388 | $ | 428,948 | ||||||||||
| Number of loans originated | 1,489 | 1,637 | 1,700 | 1,247 | 1,237 | |||||||||||||||
| Number of originators | 160 | 159 | 169 | 176 | 181 | |||||||||||||||
| Purchase % | 89.46 | % | 91.49 | % | 94.85 | % | 95.66 | % | 95.06 | % | ||||||||||
| Loans sold | $ | 629,120 | $ | 526,998 | $ | 605,134 | $ | 410,895 | $ | 468,014 | ||||||||||
| Rate lock asset | $ | 1,150 | $ | 1,548 | $ | 1,930 | $ | 1,681 | $ | 895 | ||||||||||
| Gross realized gain on sales and fees as a % of loans originated | 3.25 | % | 3.28 | % | 3.28 | % | 3.34 | % | 3.06 | % | ||||||||||
| Other Ratios: | ||||||||||||||||||||
| Net interest margin | 2.99 | % | 2.90 | % | 2.86 | % | 2.72 | % | 2.83 | % | ||||||||||
| Net interest margin-fully tax equivalent (non-GAAP) | 3.02 | % | 2.93 | % | 2.89 | % | 2.75 | % | 2.86 | % | ||||||||||
| Average earning assets/total average assets | 90.57 | % | 90.43 | % | 90.36 | % | 90.52 | % | 90.48 | % | ||||||||||
| Average loans/average deposits | 78.71 | % | 80.07 | % | 80.80 | % | 81.48 | % | 80.72 | % | ||||||||||
| Average noninterest deposits/total average deposits | 30.14 | % | 30.19 | % | 30.06 | % | 30.25 | % | 31.69 | % | ||||||||||
| Period end equity/period end total assets | 12.50 | % | 12.58 | % | 12.24 | % | 12.24 | % | 12.21 | % | ||||||||||
| Efficiency ratio (non-GAAP) | 70.28 | % | 70.93 | % | 68.98 | % | 73.25 | % | 76.17 | % | ||||||||||
| (1) Current reporting period regulatory capital ratios are preliminary. | ||||||||||||||||||||
| TOWNEBANK | |||||||||||||||||
| Selected Data (unaudited) | |||||||||||||||||
| (dollars in thousands) | |||||||||||||||||
| Investment Securities | % Change | ||||||||||||||||
| Q4 | Q4 | Q3 | Q4 24 vs. | Q4 24 vs. | |||||||||||||
| Available-for-sale securities, at fair value | 2024 | 2023 | 2024 | Q4 23 | Q3 24 | ||||||||||||
| U.S. agency securities | $ | 293,917 | $ | 306,386 | $ | 291,814 | (4.07 | )% | 0.72 | % | |||||||
| U.S. Treasury notes | 28,429 | 27,684 | 28,655 | 2.69 | % | (0.79 | )% | ||||||||||
| Municipal securities | 439,115 | 510,134 | 455,722 | (13.92 | )% | (3.64 | )% | ||||||||||
| Trust preferred and other corporate securities | 95,279 | 86,011 | 91,525 | 10.78 | % | 4.10 | % | ||||||||||
| Mortgage-backed securities issued by GSE | 1,497,951 | 1,200,625 | 1,496,631 | 24.76 | % | 0.09 | % | ||||||||||
| Allowance for credit losses | (1,326 | ) | (1,498 | ) | (1,171 | ) | (11.48 | )% | 13.24 | % | |||||||
| Total | $ | 2,353,365 | $ | 2,129,342 | $ | 2,363,176 | 10.52 | % | (0.42 | )% | |||||||
| Gross unrealized gains (losses) reflected in financial statements | |||||||||||||||||
| Total gross unrealized gains | $ | 2,572 | $ | 3,740 | $ | 6,703 | (31.23 | )% | (61.63 | )% | |||||||
| Total gross unrealized losses | (157,851 | ) | (165,863 | ) | (117,319 | ) | (4.83 | )% | 34.55 | % | |||||||
| Net unrealized gains (losses) and other adjustments on AFS securities | $ | (155,279 | ) | $ | (162,123 | ) | $ | (110,616 | ) | (4.22 | )% | 40.38 | % | ||||
| Held-to-maturity securities, at amortized cost | |||||||||||||||||
| U.S. agency securities | $ | 102,622 | $ | 101,850 | $ | 102,428 | 0.76 | % | 0.19 | % | |||||||
| U.S. Treasury notes | 96,710 | 362,593 | 96,942 | (73.33 | )% | (0.24 | )% | ||||||||||
| Municipal securities | 5,366 | 5,272 | 5,342 | 1.78 | % | 0.45 | % | ||||||||||
| Trust preferred corporate securities | 2,121 | 2,172 | 2,133 | (2.35 | )% | (0.56 | )% | ||||||||||
| Mortgage-backed securities issued by GSE | 5,533 | 5,705 | 5,577 | (3.01 | )% | (0.79 | )% | ||||||||||
| Allowance for credit losses | (77 | ) | (84 | ) | (77 | ) | (8.33 | )% | — | % | |||||||
| Total | $ | 212,275 | $ | 477,508 | $ | 212,345 | (55.55 | )% | (0.03 | )% | |||||||
| Total gross unrealized gains | $ | 178 | $ | 380 | $ | 323 | (53.16 | )% | (44.89 | )% | |||||||
| Total gross unrealized losses | (8,647 | ) | (15,316 | ) | (7,929 | ) | N/M | 9.06 | % | ||||||||
| Net unrealized gains (losses) on HTM securities | $ | (8,469 | ) | $ | (14,936 | ) | $ | (7,606 | ) | (43.30 | )% | 11.35 | % | ||||
| Total unrealized (losses) gains on AFS and HTM securities | $ | (163,748 | ) | $ | (177,059 | ) | $ | (118,222 | ) | (7.52 | )% | 38.51 | % | ||||
| % Change | |||||||||||||||||
| Loans Held For Investment | Q4 | Q4 | Q3 | Q4 24 vs. | Q4 24 vs. | ||||||||||||
| 2024 | 2023 | 2024 | Q4 23 | Q3 24 | |||||||||||||
| Real estate - construction and development | $ | 1,082,161 | $ | 1,249,735 | $ | 1,118,669 | (13.41 | )% | (3.26 | )% | |||||||
| Commercial real estate - owner occupied | 1,628,731 | 1,699,386 | 1,655,345 | (4.16 | )% | (1.61 | )% | ||||||||||
| Commercial real estate - non owner occupied | 3,196,665 | 3,117,071 | 3,179,699 | 2.55 | % | 0.53 | % | ||||||||||
| Real estate - multifamily | 801,079 | 583,209 | 750,906 | 37.36 | % | 6.68 | % | ||||||||||
| Residential 1-4 family | 1,891,470 | 1,852,891 | 1,891,216 | 2.08 | % | 0.01 | % | ||||||||||
| HELOC | 410,594 | 382,979 | 408,565 | 7.21 | % | 0.50 | % | ||||||||||
| Commercial and industrial business (C&I) | 1,280,394 | 1,265,169 | 1,256,511 | 1.20 | % | 1.90 | % | ||||||||||
| Government | 513,039 | 525,261 | 521,681 | (2.33 | )% | (1.66 | )% | ||||||||||
| Indirect | 567,245 | 558,789 | 546,887 | 1.51 | % | 3.72 | % | ||||||||||
| Consumer loans and other | 87,677 | 94,531 | 83,039 | (7.25 | )% | 5.59 | % | ||||||||||
| Total | $ | 11,459,055 | $ | 11,329,021 | $ | 11,412,518 | 1.15 | % | 0.41 | % | |||||||
| % Change | |||||||||||||||||
| Deposits | Q4 | Q4 | Q3 | Q4 24 vs. | Q4 24 vs. | ||||||||||||
| 2024 | 2023 | 2024 | Q4 23 | Q3 24 | |||||||||||||
| Noninterest-bearing demand | $ | 4,253,053 | $ | 4,342,701 | $ | 4,267,628 | (2.06 | )% | (0.34 | )% | |||||||
| Interest-bearing: | |||||||||||||||||
| Demand and money market accounts | 7,329,669 | 6,757,619 | 6,990,103 | 8.47 | % | 4.86 | % | ||||||||||
| Savings | 311,841 | 336,492 | 319,970 | (7.33 | )% | (2.54 | )% | ||||||||||
| Certificates of deposits | 2,542,735 | 2,456,394 | 2,785,469 | 3.51 | % | (8.71 | )% | ||||||||||
| Total | $ | 14,437,298 | $ | 13,893,206 | $ | 14,363,170 | 3.92 | % | 0.52 | % | |||||||
| TOWNEBANK | ||||||||||||||||||||||||||||||||
| Average Balances, Yields and Rate Paid (unaudited) | ||||||||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||
| December 31, 2024 | September 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||
| Interest | Average | Interest | Average | Interest | Average | |||||||||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||||||
| Balance | Expense | Rate (1) | Balance | Expense | Rate (1) | Balance | Expense | Rate (1) | ||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||
| Loans (net of unearned income and deferred costs) | $ | 11,455,253 | $ | 155,710 | 5.41 | % | $ | 11,419,428 | $ | 156,610 | 5.46 | % | $ | 11,229,965 | $ | 147,647 | 5.22 | % | ||||||||||||||
| Taxable investment securities | 2,421,253 | 20,722 | 3.42 | % | 2,376,102 | 20,940 | 3.53 | % | 2,365,928 | 18,820 | 3.18 | % | ||||||||||||||||||||
| Tax-exempt investment securities | 176,266 | 1,832 | 4.16 | % | 168,768 | 1,686 | 4.00 | % | 195,603 | 1,989 | 4.07 | % | ||||||||||||||||||||
| Total securities | 2,597,519 | 22,554 | 3.47 | % | 2,544,870 | 22,626 | 3.56 | % | 2,561,531 | 20,809 | 3.25 | % | ||||||||||||||||||||
| Interest-bearing deposits | 1,451,121 | 15,796 | 4.33 | % | 1,226,445 | 15,249 | 4.95 | % | 1,141,086 | 13,967 | 4.86 | % | ||||||||||||||||||||
| Mortgage loans held for sale | 209,315 | 3,088 | 5.90 | % | 208,513 | 3,247 | 6.23 | % | 162,543 | 2,886 | 7.10 | % | ||||||||||||||||||||
| Total earning assets | 15,713,208 | 197,148 | 4.99 | % | 15,399,256 | 197,732 | 5.11 | % | 15,095,125 | 185,309 | 4.87 | % | ||||||||||||||||||||
| Less: allowance for credit losses | (123,068 | ) | (125,331 | ) | (126,205 | ) | ||||||||||||||||||||||||||
| Total nonearning assets | 1,758,988 | 1,754,216 | 1,714,121 | |||||||||||||||||||||||||||||
| Total assets | $ | 17,349,128 | $ | 17,028,141 | $ | 16,683,041 | ||||||||||||||||||||||||||
| Liabilities and Equity: | ||||||||||||||||||||||||||||||||
| Interest-bearing deposits | ||||||||||||||||||||||||||||||||
| Demand and money market | $ | 7,157,076 | $ | 43,894 | 2.44 | % | $ | 6,917,622 | $ | 48,896 | 2.81 | % | $ | 6,786,850 | $ | 46,833 | 2.74 | % | ||||||||||||||
| Savings | 315,414 | 777 | 0.98 | % | 315,338 | 842 | 1.06 | % | 345,172 | 962 | 1.11 | % | ||||||||||||||||||||
| Certificates of deposit | 2,694,236 | 31,214 | 4.61 | % | 2,723,437 | 32,390 | 4.73 | % | 2,370,723 | 25,405 | 4.25 | % | ||||||||||||||||||||
| Total interest-bearing deposits | 10,166,726 | 75,885 | 2.97 | % | 9,956,397 | 82,128 | 3.28 | % | 9,502,745 | 73,200 | 3.06 | % | ||||||||||||||||||||
| Borrowings | 36,708 | (151 | ) | (1.61 | )% | 33,867 | (25 | ) | (0.29 | )% | 114,151 | 958 | 3.28 | % | ||||||||||||||||||
| Subordinated debt, net | 257,667 | 2,261 | 3.51 | % | 256,309 | 2,237 | 3.49 | % | 255,663 | 2,236 | 3.50 | % | ||||||||||||||||||||
| Total interest-bearing liabilities | 10,461,101 | 77,995 | 2.97 | % | 10,246,573 | 84,340 | 3.27 | % | 9,872,559 | 76,394 | 3.07 | % | ||||||||||||||||||||
| Demand deposits | 4,386,911 | 4,305,783 | 4,408,712 | |||||||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 353,005 | 370,736 | 413,468 | |||||||||||||||||||||||||||||
| Total liabilities | 15,201,017 | 14,923,092 | 14,694,739 | |||||||||||||||||||||||||||||
| Shareholders’ equity | 2,148,111 | 2,105,049 | 1,988,302 | |||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 17,349,128 | $ | 17,028,141 | $ | 16,683,041 | ||||||||||||||||||||||||||
| Net interest income (tax-equivalent basis) (4) | $ | 119,153 | $ | 113,392 | $ | 108,915 | ||||||||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||
| Tax-equivalent basis adjustment | (1,096 | ) | (1,110 | ) | (1,182 | ) | ||||||||||||||||||||||||||
| Net interest income (GAAP) | $ | 118,057 | $ | 112,282 | $ | 107,733 | ||||||||||||||||||||||||||
| Interest rate spread (2)(4) | 2.02 | % | 1.84 | % | 1.80 | % | ||||||||||||||||||||||||||
| Interest expense as a percent of average earning assets | 1.97 | % | 2.18 | % | 2.01 | % | ||||||||||||||||||||||||||
| Net interest margin (tax-equivalent basis) (3)(4) | 3.02 | % | 2.93 | % | 2.86 | % | ||||||||||||||||||||||||||
| Total cost of deposits | 2.07 | % | 2.29 | % | 2.09 | % | ||||||||||||||||||||||||||
(1) Yields and interest income are presented on a tax-equivalent basis using the federal statutory tax rate of
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax equivalent.
(4) Non-GAAP.
| TOWNEBANK | |||||||||||||||||||||
| Average Balances, Yields and Rate Paid (unaudited) | |||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||
| Interest | Average | Interest | Average | ||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||
| Balance | Expense | Rate (1) | Balance | Expense | Rate (1) | ||||||||||||||||
| Assets: | |||||||||||||||||||||
| Loans (net of unearned income and deferred costs) | $ | 11,431,451 | $ | 619,505 | 5.42 | % | $ | 11,177,132 | $ | 565,453 | 5.06 | % | |||||||||
| Taxable investment securities | 2,401,605 | 82,049 | 3.42 | % | 2,406,845 | 71,476 | 2.97 | % | |||||||||||||
| Tax-exempt investment securities | 165,806 | 6,588 | 3.97 | % | 200,040 | 7,872 | 3.94 | % | |||||||||||||
| Total securities | 2,567,411 | 88,637 | 3.45 | % | 2,606,885 | 79,348 | 3.04 | % | |||||||||||||
| Interest-bearing deposits | 1,257,373 | 59,791 | 4.76 | % | 1,170,156 | 54,135 | 4.63 | % | |||||||||||||
| Mortgage loans held for sale | 175,207 | 10,995 | 6.28 | % | 167,240 | 10,965 | 6.56 | % | |||||||||||||
| Total earning assets | 15,431,442 | 778,928 | 5.05 | % | 15,121,413 | 709,901 | 4.69 | % | |||||||||||||
| Less: allowance for credit losses | (125,643 | ) | (121,878 | ) | |||||||||||||||||
| Total nonearning assets | 1,750,922 | 1,657,151 | |||||||||||||||||||
| Total assets | $ | 17,056,721 | $ | 16,656,686 | |||||||||||||||||
| Liabilities and Equity: | |||||||||||||||||||||
| Interest-bearing deposits | |||||||||||||||||||||
| Demand and money market | $ | 6,950,210 | $ | 188,936 | 2.72 | % | $ | 6,459,679 | $ | 143,574 | 2.22 | % | |||||||||
| Savings | 319,369 | 3,345 | 1.05 | % | 368,440 | 3,639 | 0.99 | % | |||||||||||||
| Certificates of deposit | 2,679,468 | 126,143 | 4.71 | % | 2,067,053 | 72,763 | 3.52 | % | |||||||||||||
| Total interest-bearing deposits | 9,949,047 | 318,424 | 3.20 | % | 8,895,172 | 219,976 | 2.47 | % | |||||||||||||
| Borrowings | 95,448 | 4,529 | 4.67 | % | 407,125 | 18,600 | 4.51 | % | |||||||||||||
| Subordinated debt, net | 256,489 | 8,970 | 3.50 | % | 254,129 | 8,886 | 3.50 | % | |||||||||||||
| Total interest-bearing liabilities | 10,300,984 | 331,923 | 3.22 | % | 9,556,426 | 247,462 | 2.59 | % | |||||||||||||
| Demand deposits | 4,296,372 | 4,756,681 | |||||||||||||||||||
| Other noninterest-bearing liabilities | 374,372 | 368,585 | |||||||||||||||||||
| Total liabilities | 14,971,728 | 14,681,692 | |||||||||||||||||||
| Shareholders' equity | 2,084,993 | 1,974,994 | |||||||||||||||||||
| Total liabilities and equity | $ | 17,056,721 | $ | 16,656,686 | |||||||||||||||||
| Net interest income (tax-equivalent basis) (4) | $ | 447,005 | $ | 462,439 | |||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||||
| Tax-equivalent basis adjustment | (4,400 | ) | (4,659 | ) | |||||||||||||||||
| Net interest income (GAAP) | $ | 442,605 | $ | 457,780 | |||||||||||||||||
| Interest rate spread (2)(4) | 1.83 | % | 2.10 | % | |||||||||||||||||
| Interest expense as a percent of average earning assets | 2.15 | % | 1.64 | % | |||||||||||||||||
| Net interest margin (tax-equivalent basis) (3)(4) | 2.90 | % | 3.06 | % | |||||||||||||||||
| Total cost of deposits | 2.24 | % | 1.61 | % | |||||||||||||||||
(1) Yields and interest income are presented on a tax-equivalent basis using the federal statutory rate of
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax equivalent.
(4) Non-GAAP.
| TOWNEBANK | |||||||
| Consolidated Balance Sheets | |||||||
| (dollars in thousands, except per share data) | |||||||
| 2024 | 2023 | ||||||
| (unaudited) | (audited) | ||||||
| ASSETS | |||||||
| Cash and due from banks | $ | 108,750 | $ | 85,584 | |||
| Interest-bearing deposits at FRB | 1,127,878 | 939,356 | |||||
| Interest-bearing deposits in financial institutions | 102,847 | 103,417 | |||||
| Total Cash and Cash Equivalents | 1,339,475 | 1,128,357 | |||||
| Securities available for sale, at fair value (amortized cost of | 2,353,365 | 2,129,342 | |||||
| Securities held to maturity, at amortized cost (fair value | 212,352 | 477,592 | |||||
| Less: allowance for credit losses | (77 | ) | (84 | ) | |||
| Securities held to maturity, net of allowance for credit losses | 212,275 | 477,508 | |||||
| Other equity securities | 12,100 | 13,792 | |||||
| FHLB stock | 12,136 | 21,372 | |||||
| Total Securities | 2,589,876 | 2,642,014 | |||||
| Mortgage loans held for sale | 200,460 | 149,987 | |||||
| Loans, net of unearned income and deferred costs | 11,459,055 | 11,329,021 | |||||
| Less: allowance for credit losses | (123,923 | ) | (126,461 | ) | |||
| Net Loans | 11,335,132 | 11,202,560 | |||||
| Premises and equipment, net | 368,876 | 337,598 | |||||
| Goodwill | 457,619 | 456,335 | |||||
| Other intangible assets, net | 60,171 | 64,634 | |||||
| BOLI | 279,802 | 277,445 | |||||
| Other assets | 615,479 | 576,109 | |||||
| TOTAL ASSETS | $ | 17,246,890 | $ | 16,835,039 | |||
| LIABILITIES AND EQUITY | |||||||
| Deposits: | |||||||
| Noninterest-bearing demand | $ | 4,253,053 | $ | 4,342,701 | |||
| Interest-bearing: | |||||||
| Demand and money market accounts | 7,329,669 | 6,757,619 | |||||
| Savings | 311,841 | 336,492 | |||||
| Certificates of deposit | 2,542,735 | 2,456,394 | |||||
| Total Deposits | 14,437,298 | 13,893,206 | |||||
| Advances from the FHLB | 3,218 | 203,958 | |||||
| Subordinated debt, net | 260,001 | 255,796 | |||||
| Repurchase agreements and other borrowings | 33,683 | 32,826 | |||||
| Total Borrowings | 296,902 | 492,580 | |||||
| Other liabilities | 357,063 | 393,375 | |||||
| TOTAL LIABILITIES | 15,091,263 | 14,779,161 | |||||
| Preferred stock, authorized and unissued shares - 2,000,000 | — | — | |||||
| Common stock, | |||||||
| Issued and outstanding shares 75,255,205 in 2024 and 74,893,462 in 2023 | 125,455 | 124,847 | |||||
| Capital surplus | 1,122,147 | 1,112,761 | |||||
| Retained earnings | 1,007,775 | 921,126 | |||||
| Common stock issued to deferred compensation trust, at cost | |||||||
| 1,046,121 shares in 2024 and 1,004,717 shares in 2023 | 21,868 | 20,813 | |||||
| Deferred compensation trust | (21,868 | ) | (20,813 | ) | |||
| Accumulated other comprehensive income (loss) | (116,045 | ) | (118,762 | ) | |||
| TOTAL SHAREHOLDERS’ EQUITY | 2,139,332 | 2,039,972 | |||||
| Noncontrolling interest | 16,295 | 15,906 | |||||
| TOTAL EQUITY | 2,155,627 | 2,055,878 | |||||
| TOTAL LIABILITIES AND EQUITY | $ | 17,246,890 | $ | 16,835,039 | |||
| TOWNEBANK | |||||||||||||||
| Consolidated Statements of Income | |||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (audited) | ||||||||||||
| INTEREST INCOME: | |||||||||||||||
| Loans, including fees | $ | 154,933 | $ | 146,810 | $ | 616,248 | $ | 562,160 | |||||||
| Investment securities | 22,236 | 20,464 | 87,494 | 77,982 | |||||||||||
| Interest-bearing deposits in financial institutions and federal funds sold | 15,796 | 13,967 | 59,791 | 54,135 | |||||||||||
| Mortgage loans held for sale | 3,087 | 2,886 | 10,995 | 10,965 | |||||||||||
| Total interest income | 196,052 | 184,127 | 774,528 | 705,242 | |||||||||||
| INTEREST EXPENSE: | |||||||||||||||
| Deposits | 75,885 | 73,200 | 318,424 | 219,976 | |||||||||||
| Advances from the FHLB | 26 | 917 | 3,435 | 17,754 | |||||||||||
| Subordinated debt, net | 2,261 | 2,236 | 8,970 | 8,886 | |||||||||||
| Repurchase agreements and other borrowings | (177 | ) | 41 | 1,094 | 846 | ||||||||||
| Total interest expense | 77,995 | 76,394 | 331,923 | 247,462 | |||||||||||
| Net interest income | 118,057 | 107,733 | 442,605 | 457,780 | |||||||||||
| PROVISION FOR CREDIT LOSSES | 1,606 | 2,446 | (548 | ) | 18,679 | ||||||||||
| Net interest income after provision for credit losses | 116,451 | 105,287 | 443,153 | 439,101 | |||||||||||
| NONINTEREST INCOME: | |||||||||||||||
| Residential mortgage banking income, net | 11,272 | 8,035 | 46,957 | 39,415 | |||||||||||
| Insurance commissions and related income, net | 23,265 | 21,207 | 98,562 | 90,305 | |||||||||||
| Property management income, net | 8,186 | 7,358 | 50,492 | 47,791 | |||||||||||
| Real estate brokerage (loss) income, net | — | (32 | ) | — | 3,530 | ||||||||||
| Service charges on deposit accounts | 3,289 | 3,056 | 12,838 | 11,631 | |||||||||||
| Credit card merchant fees, net | 1,486 | 1,476 | 6,529 | 6,709 | |||||||||||
| Investment commissions, net | 3,195 | 2,380 | 10,953 | 8,962 | |||||||||||
| BOLI | 4,478 | 2,206 | 11,444 | 7,402 | |||||||||||
| Gain (loss) on sale of equity investment | 218 | (10 | ) | 238 | 9,377 | ||||||||||
| Other income | 3,714 | 2,137 | 13,058 | 11,220 | |||||||||||
| Net gain on investment securities | — | — | 74 | — | |||||||||||
| Total noninterest income | 59,103 | 47,813 | 251,145 | 236,342 | |||||||||||
| NONINTEREST EXPENSE: | |||||||||||||||
| Salaries and employee benefits | 74,399 | 66,035 | 289,248 | 270,158 | |||||||||||
| Occupancy | 9,819 | 9,308 | 38,309 | 36,886 | |||||||||||
| Furniture and equipment | 4,850 | 4,445 | 18,619 | 17,178 | |||||||||||
| Amortization - intangibles | 3,095 | 3,411 | 12,769 | 14,155 | |||||||||||
| Software expense | 6,870 | 6,743 | 26,816 | 24,666 | |||||||||||
| Data processing | 3,788 | 3,529 | 17,011 | 15,033 | |||||||||||
| Professional fees | 3,446 | 3,339 | 15,134 | 12,286 | |||||||||||
| Advertising and marketing | 3,359 | 3,377 | 15,627 | 15,390 | |||||||||||
| Other expenses | 17,815 | 21,708 | 70,383 | 83,470 | |||||||||||
| Total noninterest expense | 127,441 | 121,895 | 503,916 | 489,222 | |||||||||||
| Income before income tax expense and noncontrolling interest | 48,113 | 31,205 | 190,382 | 186,221 | |||||||||||
| Provision for income tax expense | 6,672 | 2,660 | 27,649 | 31,085 | |||||||||||
| Net income | $ | 41,441 | $ | 28,545 | $ | 162,733 | $ | 155,136 | |||||||
| Net (income) loss attributable to noncontrolling interest | (176 | ) | 259 | (976 | ) | (1,421 | ) | ||||||||
| Net income attributable to TowneBank | $ | 41,265 | $ | 28,804 | $ | 161,757 | $ | 153,715 | |||||||
| Per common share information | |||||||||||||||
| Basic earnings | $ | 0.55 | $ | 0.39 | $ | 2.16 | $ | 2.06 | |||||||
| Diluted earnings | $ | 0.55 | $ | 0.39 | $ | 2.15 | $ | 2.06 | |||||||
| Cash dividends declared | $ | 0.25 | $ | 0.25 | $ | 1.00 | $ | 0.98 | |||||||
| TOWNEBANK | |||||||||||||||||||
| Consolidated Balance Sheets - Five Quarter Trend | |||||||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (audited) | |||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and due from banks | $ | 108,750 | $ | 131,068 | $ | 140,028 | $ | 75,802 | $ | 85,584 | |||||||||
| Interest-bearing deposits at FRB | 1,127,878 | 1,061,596 | 1,062,115 | 926,635 | 939,356 | ||||||||||||||
| Federal funds sold and interest-bearing deposits in financial institutions | 102,847 | 103,400 | 99,303 | 98,673 | 103,417 | ||||||||||||||
| Total Cash and Cash Equivalents | 1,339,475 | 1,296,064 | 1,301,446 | 1,101,110 | 1,128,357 | ||||||||||||||
| Securities available for sale | 2,353,365 | 2,363,176 | 2,250,679 | 2,204,101 | 2,129,342 | ||||||||||||||
| Securities held to maturity | 212,352 | 212,422 | 212,488 | 312,510 | 477,592 | ||||||||||||||
| Less: allowance for credit losses | (77 | ) | (77 | ) | (79 | ) | (82 | ) | (84 | ) | |||||||||
| Securities held to maturity, net of allowance for credit losses | 212,275 | 212,345 | 212,409 | 312,428 | 477,508 | ||||||||||||||
| Other equity securities | 12,100 | 12,681 | 13,566 | 13,661 | 13,792 | ||||||||||||||
| FHLB stock | 12,136 | 12,134 | 12,134 | 12,139 | 21,372 | ||||||||||||||
| Total Securities | 2,589,876 | 2,600,336 | 2,488,788 | 2,542,329 | 2,642,014 | ||||||||||||||
| Mortgage loans held for sale | 200,460 | 264,320 | 200,762 | 150,727 | 149,987 | ||||||||||||||
| Loans, net of unearned income and deferred costs | 11,459,055 | 11,412,518 | 11,451,747 | 11,452,343 | 11,329,021 | ||||||||||||||
| Less: allowance for credit losses | (123,923 | ) | (123,191 | ) | (125,552 | ) | (125,835 | ) | (126,461 | ) | |||||||||
| Net Loans | 11,335,132 | 11,289,327 | 11,326,195 | 11,326,508 | 11,202,560 | ||||||||||||||
| Premises and equipment, net | 368,876 | 365,764 | 340,348 | 342,569 | 337,598 | ||||||||||||||
| Goodwill | 457,619 | 457,619 | 457,619 | 457,619 | 456,335 | ||||||||||||||
| Other intangible assets, net | 60,171 | 63,265 | 65,460 | 68,758 | 64,634 | ||||||||||||||
| BOLI | 279,802 | 279,325 | 277,434 | 279,293 | 277,445 | ||||||||||||||
| Other assets | 615,479 | 572,000 | 610,791 | 615,324 | 576,109 | ||||||||||||||
| TOTAL ASSETS | $ | 17,246,890 | $ | 17,188,020 | $ | 17,068,843 | $ | 16,884,237 | $ | 16,835,039 | |||||||||
| LIABILITIES AND EQUITY | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Noninterest-bearing demand | $ | 4,253,053 | $ | 4,267,628 | $ | 4,303,773 | $ | 4,194,132 | $ | 4,342,701 | |||||||||
| Interest-bearing: | |||||||||||||||||||
| Demand and money market accounts | 7,329,669 | 6,990,103 | 6,940,086 | 6,916,701 | 6,757,619 | ||||||||||||||
| Savings | 311,841 | 319,970 | 312,881 | 326,179 | 336,492 | ||||||||||||||
| Certificates of deposit | 2,542,735 | 2,785,469 | 2,715,848 | 2,689,062 | 2,456,394 | ||||||||||||||
| Total Deposits | 14,437,298 | 14,363,170 | 14,272,588 | 14,126,074 | 13,893,206 | ||||||||||||||
| Advances from the FHLB | 3,218 | 3,405 | 3,591 | 3,775 | 203,958 | ||||||||||||||
| Subordinated debt, net | 260,001 | 256,444 | 256,227 | 256,011 | 255,796 | ||||||||||||||
| Repurchase agreements and other borrowings | 33,683 | 30,970 | 35,351 | 31,198 | 32,826 | ||||||||||||||
| Total Borrowings | 296,902 | 290,819 | 295,169 | 290,984 | 492,580 | ||||||||||||||
| Other liabilities | 357,063 | 371,316 | 411,770 | 401,307 | 393,375 | ||||||||||||||
| TOTAL LIABILITIES | 15,091,263 | 15,025,305 | 14,979,527 | 14,818,365 | 14,779,161 | ||||||||||||||
| Preferred stock | — | — | — | — | — | ||||||||||||||
| Common stock, | 125,455 | 125,139 | 125,090 | 125,009 | 124,847 | ||||||||||||||
| Capital surplus | 1,122,147 | 1,117,279 | 1,115,759 | 1,114,038 | 1,112,761 | ||||||||||||||
| Retained earnings | 1,007,775 | 985,343 | 961,162 | 937,065 | 921,126 | ||||||||||||||
| Common stock issued to deferred compensation trust, at cost | (21,868 | ) | (22,224 | ) | (22,756 | ) | (20,915 | ) | (20,813 | ) | |||||||||
| Deferred compensation trust | 21,868 | 22,224 | 22,756 | 20,915 | 20,813 | ||||||||||||||
| Accumulated other comprehensive income (loss) | (116,045 | ) | (81,482 | ) | (129,224 | ) | (126,586 | ) | (118,762 | ) | |||||||||
| TOTAL SHAREHOLDERS’ EQUITY | 2,139,332 | 2,146,279 | 2,072,787 | 2,049,526 | 2,039,972 | ||||||||||||||
| Noncontrolling interest | 16,295 | 16,436 | 16,529 | 16,346 | 15,906 | ||||||||||||||
| TOTAL EQUITY | 2,155,627 | 2,162,715 | 2,089,316 | 2,065,872 | 2,055,878 | ||||||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 17,246,890 | $ | 17,188,020 | $ | 17,068,843 | $ | 16,884,237 | $ | 16,835,039 | |||||||||
| TOWNEBANK | |||||||||||||||||||
| Consolidated Statements of Income - Five Quarter Trend (unaudited) | |||||||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2022 | |||||||||||||||
| INTEREST INCOME: | |||||||||||||||||||
| Loans, including fees | $ | 154,933 | $ | 155,792 | $ | 154,549 | $ | 150,974 | $ | 146,810 | |||||||||
| Investment securities | 22,236 | 22,334 | 22,928 | 19,996 | 20,464 | ||||||||||||||
| Interest-bearing deposits in financial institutions and federal funds sold | 15,796 | 15,249 | 14,512 | 14,234 | 13,967 | ||||||||||||||
| Mortgage loans held for sale | 3,087 | 3,247 | 2,945 | 1,716 | 2,886 | ||||||||||||||
| Total interest income | 196,052 | 196,622 | 194,934 | 186,920 | 184,127 | ||||||||||||||
| INTEREST EXPENSE: | |||||||||||||||||||
| Deposits | 75,885 | 82,128 | 82,023 | 78,388 | 73,200 | ||||||||||||||
| Advances from the FHLB | 26 | 29 | 942 | 2,438 | 917 | ||||||||||||||
| Subordinated debt, net | 2,261 | 2,237 | 2,236 | 2,236 | 2,236 | ||||||||||||||
| Repurchase agreements and other borrowings | (177 | ) | (54 | ) | 685 | 640 | 41 | ||||||||||||
| Total interest expense | 77,995 | 84,340 | 85,886 | 83,702 | 76,394 | ||||||||||||||
| Net interest income | 118,057 | 112,282 | 109,048 | 103,218 | 107,733 | ||||||||||||||
| PROVISION FOR CREDIT LOSSES | 1,606 | (1,100 | ) | (177 | ) | (877 | ) | 2,446 | |||||||||||
| Net interest income after provision for credit losses | 116,451 | 113,382 | 109,225 | 104,095 | 105,287 | ||||||||||||||
| NONINTEREST INCOME: | |||||||||||||||||||
| Residential mortgage banking income, net | 11,272 | 11,786 | 13,422 | 10,477 | 8,035 | ||||||||||||||
| Insurance commissions and related income, net | 23,265 | 25,727 | 24,031 | 25,539 | 21,207 | ||||||||||||||
| Property management income, net | 8,186 | 11,221 | 14,312 | 16,773 | 7,358 | ||||||||||||||
| Real estate brokerage (loss) income, net | — | — | — | — | (32 | ) | |||||||||||||
| Service charges on deposit accounts | 3,289 | 3,117 | 3,353 | 3,079 | 3,056 | ||||||||||||||
| Credit card merchant fees, net | 1,486 | 1,830 | 1,662 | 1,551 | 1,476 | ||||||||||||||
| Investment commissions, net | 3,195 | 2,835 | 2,580 | 2,343 | 2,380 | ||||||||||||||
| BOLI | 4,478 | 1,886 | 3,238 | 1,842 | 2,206 | ||||||||||||||
| Other income | 3,932 | 3,834 | 3,324 | 2,206 | 2,127 | ||||||||||||||
| Net gain/(loss) on investment securities | — | — | — | 74 | — | ||||||||||||||
| Total noninterest income | 59,103 | 62,236 | 65,922 | 63,884 | 47,813 | ||||||||||||||
| NONINTEREST EXPENSE: | |||||||||||||||||||
| Salaries and employee benefits | 74,399 | 72,123 | 71,349 | 71,377 | 66,035 | ||||||||||||||
| Occupancy | 9,819 | 9,351 | 9,717 | 9,422 | 9,308 | ||||||||||||||
| Furniture and equipment | 4,850 | 4,657 | 4,634 | 4,478 | 4,445 | ||||||||||||||
| Amortization - intangibles | 3,095 | 3,130 | 3,298 | 3,246 | 3,411 | ||||||||||||||
| Software | 6,870 | 6,790 | 7,056 | 6,100 | 6,743 | ||||||||||||||
| Data processing | 3,788 | 4,701 | 4,606 | 3,916 | 3,529 | ||||||||||||||
| Professional fees | 3,446 | 4,720 | 3,788 | 3,180 | 3,339 | ||||||||||||||
| Advertising and marketing | 3,359 | 4,162 | 3,524 | 4,582 | 3,377 | ||||||||||||||
| Other expenses | 17,815 | 17,266 | 16,012 | 19,290 | 21,708 | ||||||||||||||
| Total noninterest expense | 127,441 | 126,900 | 123,984 | 125,591 | 121,895 | ||||||||||||||
| Income before income tax expense and noncontrolling interest | 48,113 | 48,718 | 51,163 | 42,388 | 31,205 | ||||||||||||||
| Provision for income tax expense | 6,672 | 5,592 | 8,124 | 7,261 | 2,660 | ||||||||||||||
| Net income | $ | 41,441 | $ | 43,126 | $ | 43,039 | $ | 35,127 | $ | 28,545 | |||||||||
| Net (income) loss attributable to noncontrolling interest | (176 | ) | (177 | ) | (183 | ) | (440 | ) | 259 | ||||||||||
| Net income attributable to TowneBank | $ | 41,265 | $ | 42,949 | $ | 42,856 | $ | 34,687 | $ | 28,804 | |||||||||
| Per common share information | |||||||||||||||||||
| Basic earnings | $ | 0.55 | $ | 0.57 | $ | 0.57 | $ | 0.46 | $ | 0.39 | |||||||||
| Diluted earnings | $ | 0.55 | $ | 0.57 | $ | 0.57 | $ | 0.46 | $ | 0.39 | |||||||||
| Basic weighted average shares outstanding | 75,034,688 | 74,940,827 | 74,925,877 | 74,816,420 | 74,773,335 | ||||||||||||||
| Diluted weighted average shares outstanding | 75,309,989 | 75,141,661 | 75,037,955 | 74,979,501 | 74,793,557 | ||||||||||||||
| Cash dividends declared | $ | 0.25 | $ | 0.25 | $ | 0.25 | $ | 0.25 | $ | 0.25 | |||||||||
| TOWNEBANK | ||||||||||||||||||||||||||
| Banking Segment Financial Information | ||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||
| Three Months Ended | Year Ended | Increase/(Decrease) | ||||||||||||||||||||||||
| December 31, | September 30, 2024 | December 31, | 2024 over 2023 | |||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | Amount | Percent | |||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||
| Net interest income | $ | 117,137 | $ | 106,906 | $ | 111,569 | $ | 439,417 | $ | 456,071 | $ | (16,654 | ) | (3.65 | )% | |||||||||||
| Service charges on deposit accounts | 3,289 | 3,055 | 3,117 | 12,838 | 11,631 | 1,207 | 10.38 | % | ||||||||||||||||||
| Credit card merchant fees | 1,486 | 1,476 | 1,830 | 6,529 | 6,709 | (180 | ) | (2.68 | )% | |||||||||||||||||
| Investment commissions, net | 3,195 | 2,380 | 2,835 | 10,953 | 8,962 | 1,991 | 22.22 | % | ||||||||||||||||||
| Other income | 6,456 | 4,144 | 4,828 | 19,551 | 16,156 | 3,395 | 21.01 | % | ||||||||||||||||||
| Subtotal | 14,426 | 11,055 | 12,610 | 49,871 | 43,458 | 6,413 | 14.76 | % | ||||||||||||||||||
| Gain on investment securities | — | — | — | 74 | — | 74 | n/m | |||||||||||||||||||
| Total noninterest income | 14,426 | 11,055 | 12,610 | 49,945 | 43,458 | 6,487 | 14.93 | % | ||||||||||||||||||
| Total revenue | 131,563 | 117,961 | 124,179 | 489,362 | 499,529 | (10,167 | ) | (2.04 | )% | |||||||||||||||||
| Provision for credit losses | 1,525 | 2,831 | (1,043 | ) | (665 | ) | 19,273 | (19,938 | ) | 103.45 | % | |||||||||||||||
| Expenses | ||||||||||||||||||||||||||
| Salaries and employee benefits | 50,130 | 42,573 | 47,148 | 190,391 | 170,733 | 19,658 | 11.51 | % | ||||||||||||||||||
| Occupancy | 7,362 | 6,981 | 6,963 | 28,579 | 26,698 | 1,881 | 7.05 | % | ||||||||||||||||||
| Furniture and equipment | 4,087 | 3,621 | 3,878 | 15,423 | 13,771 | 1,652 | 12.00 | % | ||||||||||||||||||
| Amortization of intangible assets | 1,027 | 1,236 | 1,072 | 4,378 | 5,154 | (776 | ) | (15.06 | )% | |||||||||||||||||
| Other expenses | 25,590 | 29,602 | 26,674 | 102,806 | 109,819 | (7,013 | ) | (6.39 | )% | |||||||||||||||||
| Total expenses | 88,196 | 84,013 | 85,735 | 341,577 | 326,175 | 15,402 | 4.72 | % | ||||||||||||||||||
| Income before income tax, corporate allocation and noncontrolling interest | 41,842 | 31,117 | 39,487 | 148,450 | 154,081 | (5,631 | ) | (3.65 | )% | |||||||||||||||||
| Corporate allocation | 1,172 | 1,054 | 1,223 | 4,696 | 4,817 | (121 | ) | (2.51 | )% | |||||||||||||||||
| Income before income tax provision and noncontrolling interest | 43,014 | 32,171 | 40,710 | 153,146 | 158,898 | (5,752 | ) | (3.62 | )% | |||||||||||||||||
| Provision for income tax expense | 5,275 | 2,661 | 3,495 | 18,006 | 23,866 | (5,860 | ) | (24.55 | )% | |||||||||||||||||
| Net income | 37,739 | 29,510 | 37,215 | 135,140 | 135,032 | 108 | 0.08 | % | ||||||||||||||||||
| Noncontrolling interest | (63 | ) | — | (29 | ) | (29 | ) | — | (29 | ) | n/m | |||||||||||||||
| Net income attributable to TowneBank | $ | 37,676 | $ | 29,510 | $ | 37,186 | $ | 135,111 | $ | 135,032 | $ | 79 | 0.06 | % | ||||||||||||
| Efficiency ratio (non-GAAP) | 66.26 | % | 70.17 | % | 68.18 | % | 68.92 | % | 64.26 | % | ||||||||||||||||
| TOWNEBANK | ||||||||||||||||||||||||||
| Realty Segment Financial Information | ||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||
| Three Months Ended | Year Ended | Increase/(Decrease) | ||||||||||||||||||||||||
| December 31, | September 30, | December 31, | 2024 over 2023 | |||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2024 | 2023 | Amount | Percent | ||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||
| Residential mortgage banking income, net | $ | 11,580 | $ | 8,322 | $ | 12,211 | $ | 48,586 | $ | 41,287 | $ | 7,299 | 17.68 | % | ||||||||||||
| Real estate brokerage (loss) income, net | — | (32 | ) | — | — | 3,530 | (3,530 | ) | (100.00 | )% | ||||||||||||||||
| Title insurance and settlement fees | — | — | — | — | 443 | (443 | ) | (100.00 | )% | |||||||||||||||||
| Property management fees, net | 8,186 | 7,358 | 11,221 | 50,492 | 47,791 | 2,701 | 5.65 | % | ||||||||||||||||||
| Income (loss) from unconsolidated subsidiary | 68 | (425 | ) | 51 | 216 | (1,309 | ) | 1,525 | 116.50 | % | ||||||||||||||||
| Gain on sale of equity investment | — | — | — | — | 8,833 | (8,833 | ) | (100.00 | )% | |||||||||||||||||
| Net interest and other income | 1,664 | 1,111 | 906 | 4,671 | 3,095 | 1,576 | 50.92 | % | ||||||||||||||||||
| Total revenue | 21,498 | 16,334 | 24,389 | 103,965 | 103,670 | 295 | 0.28 | % | ||||||||||||||||||
| Provision for credit losses | 81 | (385 | ) | (57 | ) | 117 | (594 | ) | $ | 711 | 119.70 | % | ||||||||||||||
| Expenses | ||||||||||||||||||||||||||
| Salaries and employee benefits | $ | 11,508 | $ | 11,288 | $ | 12,355 | $ | 48,421 | $ | 52,958 | $ | (4,537 | ) | (8.57 | )% | |||||||||||
| Occupancy | 1,621 | 1,600 | 1,638 | 6,640 | 7,158 | (518 | ) | (7.24 | )% | |||||||||||||||||
| Furniture and equipment | 593 | 611 | 604 | 2,387 | 2,544 | (157 | ) | (6.17 | )% | |||||||||||||||||
| Amortization of intangible assets | 637 | 737 | 637 | 2,731 | 2,903 | (172 | ) | (5.92 | )% | |||||||||||||||||
| Other expenses | 7,817 | 7,240 | 8,839 | 33,992 | 34,559 | (567 | ) | (1.64 | )% | |||||||||||||||||
| Total expenses | 22,176 | 21,476 | 24,073 | 94,171 | 100,122 | (5,951 | ) | (5.94 | )% | |||||||||||||||||
| Income (loss) before income tax, corporate allocation, and noncontrolling interest | (759 | ) | (4,757 | ) | 373 | 9,677 | 4,142 | 5,535 | 133.63 | % | ||||||||||||||||
| Corporate allocation | (437 | ) | (352 | ) | (484 | ) | (1,759 | ) | (2,152 | ) | 393 | 18.26 | % | |||||||||||||
| Income (loss) before income tax provision and noncontrolling interest | (1,196 | ) | (5,109 | ) | (111 | ) | 7,918 | 1,990 | 5,928 | 297.89 | % | |||||||||||||||
| Provision for income tax | (216 | ) | (1,072 | ) | 18 | 2,120 | 698 | 1,422 | 203.72 | % | ||||||||||||||||
| Net income (loss) | (980 | ) | (4,037 | ) | (129 | ) | 5,798 | 1,292 | 4,506 | 348.76 | % | |||||||||||||||
| Noncontrolling interest | (113 | ) | 259 | (148 | ) | (947 | ) | (1,421 | ) | 474 | (33.36 | )% | ||||||||||||||
| Net income (loss) attributable to TowneBank | $ | (1,093 | ) | $ | (3,778 | ) | $ | (277 | ) | $ | 4,851 | $ | (129 | ) | $ | 4,980 | 3,860.47 | % | ||||||||
| Efficiency ratio (non-GAAP) | 100.19 | % | 126.97 | % | 96.09 | % | 87.95 | % | 102.51 | % | ||||||||||||||||
| TOWNEBANK | ||||||||||||||||||||||||||
| Insurance Segment Financial Information | ||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||
| Three Months Ended | Year Ended | Increase/(Decrease) | ||||||||||||||||||||||||
| December 31, | September 30, | December 31, | 2024 over 2023 | |||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2024 | 2023 | Amount | Percent | ||||||||||||||||||||
| Commission and fee income | ||||||||||||||||||||||||||
| Property and casualty | $ | 20,576 | $ | 19,795 | $ | 23,157 | $ | 86,679 | $ | 80,054 | $ | 6,625 | 8.28 | % | ||||||||||||
| Employee benefits | 4,335 | 4,332 | 4,483 | 18,047 | 17,726 | 321 | 1.81 | % | ||||||||||||||||||
| Specialized benefit services | 1 | 36 | — | 10 | 481 | (471 | ) | (97.92 | )% | |||||||||||||||||
| Total commissions and fees | 24,912 | 24,163 | 27,640 | 104,736 | 98,261 | 6,475 | 6.59 | % | ||||||||||||||||||
| Contingency and bonus revenue | 2,924 | 1,276 | 2,731 | 13,110 | 10,619 | 2,491 | 23.46 | % | ||||||||||||||||||
| Other income | 221 | 8 | 25 | 263 | 580 | (317 | ) | (54.66 | )% | |||||||||||||||||
| Total revenue | 28,057 | 25,447 | 30,396 | 118,109 | 109,460 | 8,649 | 7.90 | % | ||||||||||||||||||
| Employee commission expense | 3,958 | 4,197 | 4,446 | 17,686 | 18,537 | (851 | ) | (4.59 | )% | |||||||||||||||||
| Revenue, net of commission expense | 24,099 | 21,250 | 25,950 | 100,423 | 90,923 | 9,500 | 10.45 | % | ||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||
| Salaries and employee benefits | $ | 12,761 | $ | 12,174 | $ | 12,620 | $ | 50,436 | $ | 46,467 | $ | 3,969 | 8.54 | % | ||||||||||||
| Occupancy | 836 | 727 | 750 | 3,090 | 3,030 | 60 | 1.98 | % | ||||||||||||||||||
| Furniture and equipment | 170 | 213 | 175 | 809 | 863 | (54 | ) | (6.26 | )% | |||||||||||||||||
| Amortization of intangible assets | 1,431 | 1,438 | 1,421 | 5,660 | 6,098 | (438 | ) | (7.18 | )% | |||||||||||||||||
| Other expenses | 1,871 | 1,853 | 2,126 | 8,173 | 6,467 | 1,706 | 26.38 | % | ||||||||||||||||||
| Total operating expenses | 17,069 | 16,405 | 17,092 | 68,168 | 62,925 | 5,243 | 8.33 | % | ||||||||||||||||||
| Income before income tax and noncontrolling interest | 7,030 | 4,845 | 8,858 | 32,255 | 27,998 | 4,257 | 15.20 | % | ||||||||||||||||||
| Corporate allocation | (735 | ) | (702 | ) | (739 | ) | (2,937 | ) | (2,665 | ) | (272 | ) | 10.21 | % | ||||||||||||
| Income (loss) before income tax, corporate allocation, and noncontrolling interest | 6,295 | 4,143 | 8,119 | 29,318 | 25,333 | 3,985 | 15.73 | % | ||||||||||||||||||
| Provision for income tax expense | 1,613 | 1,071 | 2,079 | 7,523 | 6,521 | 1,002 | 15.37 | % | ||||||||||||||||||
| Net income | 4,682 | 3,072 | 6,040 | 21,795 | 18,812 | 2,983 | 15.86 | % | ||||||||||||||||||
| Noncontrolling interest | — | — | — | — | — | — | N/M | |||||||||||||||||||
| Net income attributable to TowneBank | $ | 4,682 | $ | 3,072 | $ | 6,040 | $ | 21,795 | $ | 18,812 | $ | 2,983 | 15.86 | % | ||||||||||||
| Provision for income taxes | 1,613 | 1,071 | 2,079 | 7,523 | 6,521 | 1,002 | 15.37 | % | ||||||||||||||||||
| Depreciation, amortization and interest expense | 1,550 | 1,588 | 1,550 | 6,182 | 6,702 | (520 | ) | (7.76 | )% | |||||||||||||||||
| EBITDA (non-GAAP) | $ | 7,845 | $ | 5,731 | $ | 9,669 | $ | 35,500 | $ | 32,035 | $ | 3,465 | 10.82 | % | ||||||||||||
| Efficiency ratio (non-GAAP) | 65.48 | % | 70.43 | % | 60.44 | % | 62.39 | % | 62.88 | % | ||||||||||||||||
| TOWNEBANK | |||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures: | |||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Return on average assets (GAAP) | 0.95 | % | 1.00 | % | 0.68 | % | 0.95 | % | 0.92 | % | |||||||||
| Impact of excluding average goodwill and other intangibles and amortization | 0.08 | % | 0.09 | % | 0.09 | % | 0.09 | % | 0.10 | % | |||||||||
| Return on average tangible assets (non-GAAP) | 1.03 | % | 1.09 | % | 0.77 | % | 1.04 | % | 1.02 | % | |||||||||
| Return on average equity (GAAP) | 7.64 | % | 8.12 | % | 5.75 | % | 7.76 | % | 7.78 | % | |||||||||
| Impact of excluding average goodwill and other intangibles and amortization | 3.04 | % | 3.30 | % | 2.78 | % | 3.24 | % | 3.60 | % | |||||||||
| Return on average tangible equity (non-GAAP) | 10.68 | % | 11.42 | % | 8.53 | % | 11.00 | % | 11.38 | % | |||||||||
| Return on average common equity (GAAP) | 7.70 | % | 8.18 | % | 5.79 | % | 7.82 | % | 7.85 | % | |||||||||
| Impact of excluding average goodwill and other intangibles and amortization | 3.09 | % | 3.36 | % | 2.83 | % | 3.29 | % | 3.65 | % | |||||||||
| Return on average tangible common equity (non-GAAP) | 10.79 | % | 11.54 | % | 8.62 | % | 11.11 | % | 11.50 | % | |||||||||
| Book value (GAAP) | $ | 28.43 | $ | 28.59 | $ | 27.24 | $ | 28.43 | $ | 27.24 | |||||||||
| Impact of excluding average goodwill and other intangibles and amortization | (6.88 | ) | (6.94 | ) | (6.96 | ) | (6.88 | ) | (6.96 | ) | |||||||||
| Tangible book value (non-GAAP) | $ | 21.55 | $ | 21.65 | $ | 20.28 | $ | 21.55 | $ | 20.28 | |||||||||
| Efficiency ratio (GAAP) | 71.94 | % | 72.71 | % | 78.36 | % | 72.64 | % | 70.48 | % | |||||||||
| Impact of exclusions | (1.66 | )% | (1.78 | )% | (2.19 | )% | (1.81 | )% | (1.10 | )% | |||||||||
| Efficiency ratio (non-GAAP) | 70.28 | % | 70.93 | % | 76.17 | % | 70.83 | % | 69.38 | % | |||||||||
| Average assets (GAAP) | $ | 17,349,128 | $ | 17,028,141 | $ | 16,683,041 | $ | 17,056,721 | $ | 16,656,686 | |||||||||
| Less: average goodwill and intangible assets | 519,691 | 522,219 | 523,086 | 522,419 | 525,546 | ||||||||||||||
| Average tangible assets (non-GAAP) | $ | 16,829,437 | $ | 16,505,922 | $ | 16,159,955 | $ | 16,534,302 | $ | 16,131,140 | |||||||||
| Average equity (GAAP) | $ | 2,148,111 | $ | 2,105,049 | $ | 1,988,302 | $ | 2,084,993 | $ | 1,974,994 | |||||||||
| Less: average goodwill and intangible assets | 519,691 | 522,219 | 523,086 | 522,419 | 525,546 | ||||||||||||||
| Average tangible equity (non-GAAP) | $ | 1,628,420 | $ | 1,582,830 | $ | 1,465,216 | $ | 1,562,574 | $ | 1,449,448 | |||||||||
| Average common equity (GAAP) | $ | 2,131,778 | $ | 2,088,674 | $ | 1,972,138 | $ | 2,068,671 | $ | 1,959,208 | |||||||||
| Less: average goodwill and intangible assets | 519,691 | 522,219 | 523,086 | 522,419 | 525,546 | ||||||||||||||
| Average tangible common equity (non-GAAP) | $ | 1,612,087 | $ | 1,566,455 | $ | 1,449,052 | $ | 1,546,252 | $ | 1,433,662 | |||||||||
| Net income (GAAP) | $ | 41,265 | $ | 42,949 | $ | 28,804 | $ | 161,757 | $ | 153,715 | |||||||||
| Amortization of intangibles, net of tax | 2,445 | 2,473 | 2,695 | 10,088 | 11,182 | ||||||||||||||
| Tangible net income (non-GAAP) | $ | 43,710 | $ | 45,422 | $ | 31,499 | $ | 171,845 | $ | 164,897 | |||||||||
| Total revenue (GAAP) | $ | 177,160 | $ | 174,518 | $ | 155,546 | $ | 693,750 | $ | 694,122 | |||||||||
| Net (gain) loss on investment securities | — | — | — | (74 | ) | — | |||||||||||||
| Net (gain) loss on equity investment | (218 | ) | (20 | ) | 10 | (238 | ) | (9,377 | ) | ||||||||||
| Total revenue for efficiency calculation (non-GAAP) | $ | 176,942 | $ | 174,498 | $ | 155,556 | $ | 693,438 | $ | 684,745 | |||||||||
| Noninterest expense (GAAP) | $ | 127,441 | $ | 126,900 | $ | 121,895 | $ | 503,916 | $ | 489,222 | |||||||||
| Less: Amortization of intangibles | 3,095 | 3,130 | 3,411 | 12,769 | 14,155 | ||||||||||||||
| Noninterest expense net of amortization (non-GAAP) | $ | 124,346 | $ | 123,770 | $ | 118,484 | $ | 491,147 | $ | 475,067 | |||||||||
| TOWNEBANK | |||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||||||
| Reconcilement of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability | Three Months Ended | ||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||||
| Net income (GAAP) | $ | 41,265 | $ | 42,949 | $ | 42,856 | $ | 34,687 | $ | 28,804 | |||||||||
| Adjustments | |||||||||||||||||||
| Plus: Acquisition-related expenses, net of tax | 250 | 460 | 18 | 564 | 56 | ||||||||||||||
| Plus: Initial provision for acquired loans, net of tax | — | — | — | — | — | ||||||||||||||
| Plus: FDIC special assessment, net of tax | — | — | (310 | ) | 1,021 | 4,083 | |||||||||||||
| Less: Gain on sale of equity investments, net of noncontrolling interest | (99 | ) | (16 | ) | — | 0 | — | (1,846 | ) | ||||||||||
| Core operating earnings, excluding certain items affecting comparability (non-GAAP) | $ | 41,416 | $ | 43,393 | $ | 42,564 | $ | 36,272 | $ | 31,097 | |||||||||
| Weighted average diluted shares | 75,309,989 | 75,141,661 | 75,037,955 | 74,979,501 | 74,793,557 | ||||||||||||||
| Diluted EPS (GAAP) | $ | 0.55 | $ | 0.57 | $ | 0.57 | $ | 0.46 | $ | 0.39 | |||||||||
| Diluted EPS, excluding certain items affecting comparability (non-GAAP) | $ | 0.55 | $ | 0.58 | $ | 0.57 | $ | 0.48 | $ | 0.42 | |||||||||
| Average assets | $ | 17,349,128 | $ | 17,028,141 | $ | 16,982,482 | $ | 16,864,235 | $ | 16,683,041 | |||||||||
| Average tangible equity | $ | 1,628,420 | $ | 1,582,830 | $ | 1,520,500 | $ | 1,517,600 | $ | 1,465,216 | |||||||||
| Average common tangible equity | $ | 1,612,087 | $ | 1,566,455 | $ | 1,504,028 | $ | 1,501,494 | $ | 1,449,052 | |||||||||
| Return on average assets, excluding certain items affecting comparability (non-GAAP) | 0.95 | % | 1.01 | % | 1.01 | % | 0.87 | % | 0.74 | % | |||||||||
| Return on average tangible equity, excluding certain items affecting comparability (non-GAAP) | 10.72 | % | 11.53 | % | 11.95 | % | 10.29 | % | 9.15 | % | |||||||||
| Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP) | 10.82 | % | 11.65 | % | 12.08 | % | 10.40 | % | 9.25 | % | |||||||||
| Efficiency ratio, excluding certain items affecting comparability (non-GAAP) | 71.87 | % | 72.46 | % | 70.85 | % | 74.84 | % | 78.33 | % | |||||||||
| TOWNEBANK | |||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||
| (dollars in thousands, except per share data) | |||||||
| Reconcilement of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability | Year Ended | ||||||
| December 31, | December 31, | ||||||
| 2024 | 2023 | ||||||
| Net income (GAAP) | $ | 161,757 | $ | 153,715 | |||
| Plus: Acquisition-related expenses, net of tax | 1,292 | 7,774 | |||||
| Plus: Initial provision for acquired loans, net of tax | — | 3,166 | |||||
| Plus: FDIC special assessment, net of tax | 711 | 4,083 | |||||
| Less: Gain on sale of equity investments, net of noncontrolling interest | (115 | ) | (7,797 | ) | |||
| Core operating earnings, excluding certain items affecting comparability (non-GAAP) | $ | 163,645 | $ | 160,941 | |||
| Weighted average diluted shares | 75,161,109 | 74,661,576 | |||||
| Diluted EPS (GAAP) | $ | 2.15 | $ | 2.06 | |||
| Diluted EPS, excluding certain items affecting comparability (non-GAAP) | $ | 2.18 | $ | 2.16 | |||
| Average assets | $ | 17,056,721 | $ | 16,656,686 | |||
| Average tangible equity | $ | 1,562,574 | $ | 1,449,448 | |||
| Average tangible common equity | $ | 1,546,252 | $ | 1,433,662 | |||
| Return on average assets, excluding certain items affecting comparability (non-GAAP) | 0.96 | % | 0.97 | % | |||
| Return on average tangible equity, excluding certain items affecting comparability (non-GAAP) | 11.12 | % | 11.88 | % | |||
| Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP) | 11.24 | % | 12.01 | % | |||
| Efficiency ratio, excluding certain items affecting comparability (non-GAAP) | 72.48 | % | 70.04 | % | |||
FAQ
What were TowneBank's (TOWN) full-year 2024 earnings per share?
How much did TOWN's deposits grow in 2024?
What was TOWN's net interest margin in Q4 2024?
When is TowneBank (TOWN) expected to close the Village Bank acquisition?
What was TOWN's loan growth in 2024?
