Business Daily Papua New Guinea
SEE OTHER BRANDS

Exploring the business and economy news of Papua New Guinea

TowneBank Reports Third Quarter 2025 Earnings

SUFFOLK, Va., Oct. 22, 2025 (GLOBE NEWSWIRE) -- TowneBank (the "Company" or "Towne") (NASDAQ: TOWN) today reported earnings for the quarter ended September 30, 2025 of $38.98 million, or $0.51 per diluted share, compared to $42.95 million, or $0.57 per diluted share, for the quarter ended September 30, 2024. Excluding certain items affecting comparability, core earnings (non-GAAP) were $63.45 million, or $0.83 per diluted share, in the current quarter compared to $43.39 million, or $0.58 per diluted share, for the quarter ended September 30, 2024.

"We delivered another strong quarter with total revenue up nearly 24% year-over-year. During the period, we announced a new partnership with Dogwood and completed the Old Point acquisition. Our disciplined approach, partnering with leading organizations in high growth markets, continues to drive earnings momentum, reflected in a 3.50% tax-equivalent margin. Towne’s resilient business model and flexible balance sheet position us well to navigate an uncertain economic environment," said G. Robert Aston, Jr., Executive Chairman.

Highlights for Third Quarter 2025:

  • Towne successfully completed the acquisition of Old Point Financial Corporation ("Old Point"), the parent company of The Old Point National Bank of Phoebus ("Old Point National Bank"), in September 2025. Included in that acquisition were $961.35 million in loans, $208.83 million in securities, and $1.21 billion in deposits.
  • As previously announced, Towne successfully completed the acquisition of Village Bank and Trust Financial Corp. and its wholly-owned bank subsidiary, Village Bank ("Village"), in April 2025. Included in that acquisition were $576.51 million in loans, $74.31 million in securities, and $637.49 million in deposits.
  • Total revenues were $215.67 million, an increase of $41.15 million, or 23.58%, compared to third quarter 2024. Net interest income increased $34.67 million, driven by a combination of increased interest income and lower deposit costs, and noninterest income increased $6.48 million.
  • Total deposits were $16.53 billion, an increase of $2.17 billion, or 15.09%, compared to third quarter 2024. Total deposits increased 7.84%, or $1.20 billion, in comparison to June 30, 2025. Excluding $1.21 billion in Old Point acquired deposits, total deposits would have increased $0.96 billion, or 6.66% compared to the prior year but declined $9.67 million, compared to the linked quarter.  
  • Noninterest-bearing deposits increased 20.43%, to $5.14 billion, compared to third quarter 2024 and represented 31.09% of total deposits. Compared to the linked quarter, noninterest-bearing deposits increased 8.10%, including $306.07 million acquired from Old Point.
  • Loans held for investment were $13.38 billion, an increase of $1.97 billion, or 17.23%, compared to September 30, 2024, and $1.02 billion, or 8.25% compared to June 30, 2025. Excluding loans acquired in the quarter, total loans would have increased $1.01 billion, or 8.81%, compared to the prior year and $58.01 million, or 1.86% on an annualized basis, compared to the linked quarter.
  • Annualized return on common shareholders' equity was 6.80% compared to 8.18% in third quarter 2024. Annualized return on average tangible common shareholders' equity (non-GAAP) was 10.15% compared to 11.54% in third quarter 2024.
  • Net interest margin was 3.48% for the quarter and tax-equivalent net interest margin (non-GAAP) was 3.50%, including purchase accounting accretion of 8 basis points, compared to the prior year quarter net interest margin of 2.90% and tax-equivalent net interest margin (non-GAAP) of 2.93%, including purchase accounting accretion of 3 basis points.
  • Compared to the linked quarter, which included purchase accounting accretion of 6 basis points, net interest margin increased 10 basis points and spread increased 11 basis points.
  • The effective tax rate was 15.88% in the quarter compared to 11.52% in third quarter 2024 and 22.23% in the linked quarter. The increase in the effective rate from third quarter 2024 to 2025 was due to an increase in state tax expense and nondeductible expenses related to the Old Point acquisition. The lower effective tax rate in the current quarter compared to prior quarter was primarily due to LIHTC investment properties placed in service during the period and the prior quarter nonrecurring adjustment to deferred income tax related to the repurchase of noncontrolling interests in Resort Property Management.

"We’re excited to have completed most of the Village integration and system conversions, marking a major milestone for our team. Our immediate priority is to finalize the Dogwood partnership and integrate Old Point systems which we expect could occur in the first quarter of 2026. Looking ahead, we anticipate scheduling the Dogwood system integration in the second half of 2026. I want to express my sincere gratitude to our dedicated teammates whose leadership and commitment to our mission of Serving Others and Enriching Lives make these achievements possible," stated William I. Foster III, President and Chief Executive Officer.

Quarterly Net Interest Income:

  • Net interest income was $146.95 million in third quarter 2025 compared to $112.28 million for the quarter ended September 30, 2024.
  • On an average basis, loans held for investment, with a yield of 5.65%, represented 75.52% of earning assets at September 30, 2025 compared to a yield of 5.46% and 74.16% of earning assets at September 30, 2024.
  • The cost of interest-bearing deposits was 2.55% for the quarter ended September 30, 2025, compared to 3.28% in second quarter 2024. Interest expense on deposits decreased $12.99 million, or 15.81%, from the prior year quarter driven by decreases in rate.
  • Our total cost of deposits decreased to 1.75% from 2.29% for the quarter ended September 30, 2024 due to lower interest-bearing deposit rates, as short-term Treasury rates continued to fall.
  • Average interest-earning assets totaled $16.77 billion at September 30, 2025 compared to $15.40 billion at September 30, 2024, an increase of 8.89%.
  • Average interest-bearing liabilities totaled $11.07 billion, an increase of $0.82 billion, or 8.01%, from prior year, driven by demand and money market deposit growth. Borrowings increased by $68.12 million over the linked quarter, driven by debt assumed in the Old Point acquisition.

Quarterly Provision for Credit Losses:

  • The quarterly provision for credit losses was an expense of $15.28 million compared to a benefit of $1.10 million in the prior year quarter and an expense of $6.41 million in the linked quarter. The provision includes an initial provision for credit losses of $12.00 million related to loans and commitments acquired in the Old Point transaction.
  • The allowance for credit losses on loans increased $14.99 million in third quarter 2025, compared to the linked quarter, $13.50 million of which resulted from the September 2025 acquisition of Old Point. In addition to the $11.45 million initial acquisition related provision for the purchased loan portfolio we increased our allowance $2.05 million for purchased credit deteriorated loan marks. Additional allowance increases were primarily driven by loan portfolio growth.
  • Net loan charge-offs were $254 thousand in the quarter, $19 thousand in the linked quarter, and $677 thousand in the prior year quarter.
  • The ratio of net charge-offs to average loans on an annualized basis was 0.01% in third quarter 2025, 0.02% in third quarter 2024, and 0.00% in the linked quarter.
  • The allowance for credit losses on loans represented 1.11% of total loans at September 30, 2025, compared to 1.08% at September 30, 2024, and 1.09% at June 30, 2025. The allowance for credit losses on loans was 19.38 times nonperforming loans compared to 18.70 times at September 30, 2024 and 16.81 times at June 30, 2025.

Quarterly Noninterest Income:

  • Total noninterest income was $68.71 million compared to $62.24 million in 2024, an increase of $6.48 million, or 10.41%.
  • Property management fee revenue increased $2.31 million, or 20.57%, to $13.53 million in third quarter 2025, compared to third quarter 2024. The increase was driven by changes to our fee structure resulting in revenue growth.
  • Residential mortgage banking income was $13.12 million compared to $11.79 million in third quarter 2024. Loan volume increased to $636.36 million in third quarter 2025 from $598.18 million in third quarter 2024. Residential purchase activity was 91.84% of production volume in the third quarter of 2025 compared to 91.49% in third quarter 2024.
  • Gross margins on residential mortgage sales increased 19 basis points to 3.32%, from the linked quarter and 4 basis points from 3.28% in third quarter 2024.
  • Investment income, net, increased 1.10 million, or 38.73%, from third quarter 2024, $0.50 million of this increase was attributable to the acquisition of Old Point.

Quarterly Noninterest Expense:

  • Total noninterest expense was $153.74 million compared to $126.90 million in 2024, an increase of $26.84 million, or 21.15%. This increase was primarily attributable to acquisition-related expenses and growth in salaries and employee benefits.
  • The acquisitions of Village and Old Point, and the pending acquisition of Dogwood State Bank, which is expected to be completed first quarter 2026, resulted in $17.81 million in acquisition-related expenses in the quarter.
  • An increase in banking personnel related to the Village and Old Point acquisitions represented $3.03 million of the $6.84 million increase in salaries and benefits expenses, compared to the prior year quarter. Additional contributing factors were annual base salary adjustments that went into effect October 2024 and higher performance-based incentives.

Consolidated Balance Sheet Highlights:

  • Total assets were $19.68 billion for the quarter ended September 30, 2025, a $1.42 billion increase compared to $18.26 billion at June 30, 2025. Total assets increased $2.49 billion, or 14.51%, from $17.19 billion at September 30, 2024.
  • Loans held for investment increased $1.97 billion, or 17.23%, compared to prior year and $1.02 billion, or 8.25%, compared to the linked quarter. The Company continues to maintain a strong credit discipline.
  • Mortgage loans held for sale decreased $51.81 million, or 19.60%, compared to prior year and $26.24 million, or 10.99%, compared to the linked quarter, driven by production seasonality.
  • Total deposits increased $2.17 billion, or 15.09%, compared to prior year, driven by acquisition-related increases in both noninterest bearing and interest-bearing demand deposits. In the linked quarter comparison, total deposits increased $1.20 billion, or 7.84%.
  • Noninterest-bearing deposits increased $871.86 million, or 20.43%, compared to prior year and $385.15 million, or 8.10%, compared to the linked quarter.
  • Total borrowings increased $71.41 million, or 24.56%, compared to third quarter 2024 and $68.12 million, or 23.16%, compared to the linked quarter, due to acquired FHLB borrowings and subordinated debt.

Investment Securities:

  • Total investment securities were $2.87 billion compared to $2.78 billion at June 30, 2025 and $2.60 billion at September 30, 2024. The weighted average duration of the portfolio at September 30, 2025 was 3.2 years. The carrying value of the available-for-sale debt securities portfolio included net unrealized losses of $87.87 million at September 30, 2025, compared to $113.14 million at June 30, 2025 and $110.62 million at September 30, 2024, with the changes in fair value marks due to the change in interest rates.

Loans and Asset Quality:

  • Total loans held for investment were $13.38 billion at September 30, 2025, $12.36 billion at June 30, 2025, and $11.41 billion at September 30, 2024. Excluding loans acquired in the quarter, total loans would have increased $1.01 billion, or 8.81%, compared to the prior year and $58.01 million, or 1.86% on an annualized basis, compared to the linked quarter.
  • Nonperforming assets were $10.38 million, or 0.05% of total assets, compared to $7.47 million, or 0.04%, at September 30, 2024, and $9.29 million, or 0.05%, at the linked quarter end.
  • Nonperforming loans were 0.06% of period end loans at September 30, 2025, September 30, 2024, and the linked quarter end.
  • Foreclosed property consisted of $712 thousand in other real estate owned, $885 thousand in former bank premises and $1.09 million in repossessed autos, for a total of $2.68 million in foreclosed property at September 30, 2025, compared to $884 thousand in repossessed autos at September 30, 2024.

Deposits and Borrowings:

  • Total deposits were $16.53 billion compared to $15.33 billion at June 30, 2025 and $14.36 billion at September 30, 2024. Excluding $1.21 billion in acquired deposits, total deposits would have increased $0.96 billion, or 6.66%, compared to the prior year but declined $9.67 million, or 0.25% on an annualized basis from the linked quarter.
  • The ratio of period end loans held for investment to deposits was 80.93% compared to 80.63% at June 30, 2025 and 79.46% at September 30, 2024.
  • Noninterest-bearing deposits were 31.09% of total deposits at September 30, 2025 compared to 31.02% at June 30, 2025 and 29.71% at September 30, 2024. Noninterest-bearing deposits increased $0.87 billion, or 20.43%, compared to September 30, 2024, and $385.15 million, or 8.10%, compared to the linked quarter.
  • Total borrowings were $362.23 million compared to $294.12 million at June 30, 2025 and $290.82 million at September 30, 2024.

Capital:

  • Common equity tier 1 capital ratio of 11.18%(1).
  • Tier 1 leverage capital ratio of 9.84%(1).
  • Tier 1 risk-based capital ratio of 11.23%(1).
  • Total risk-based capital ratio of 13.99% (1).
  • Book value per common share was $30.38 compared to $29.58 at June 30, 2025 and $28.59 at September 30, 2024.
  • Tangible book value per common share (non-GAAP) was $21.59 compared to $21.98 at June 30, 2025 and $21.65 at September 30, 2024.

(1) Preliminary.

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.

Today, TowneBank operates over 60 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, and Towne Vacations. With total assets of $19.68 billion as of September 30, 2025, TowneBank is one of the largest banks headquartered in Virginia.

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: fully tax-equivalent net interest margin, core operating earnings, core net income, 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 2023 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, trade restrictions and tariffs, 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 successfully integrate the businesses from recently completed and pending acquisitions, including our recent merger with Old Point Financial Corporation and our pending merger with Dogwood State Bank ("Dogwood"), to the extent that it may take longer or be more difficult, time-consuming, or costly to accomplish than expected; our ability to close the transaction with Dogwood 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; deposit attrition, operating costs, customer losses, and business disruption associated with recently completed or pending acquisitions, including reputational risk and adverse effects on relationships with employees, customers or other business partners, that may be greater than expected; costs or difficulties related to the integration of the businesses that we have acquired that may be greater than expected; expected growth opportunities or cost savings associated with recently completed or pending acquisitions that may not be fully realized or realized within the expected time frame; the diversion of management's attention and time from ongoing business operations and opportunities on merger related matters; 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; competitors that 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, including any adverse impact of actual and proposed cuts to federal spending, including defense, security and military spending, on the economy. 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, 2024 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
    September 30,   June 30,   March 31,   December 31,   September 30,
    2025       2025       2025       2024       2024  
Income and Performance Ratios:                  
  Total revenue $ 215,665     $ 207,442     $ 192,044     $ 177,160     $ 174,518  
  Net income   39,294       39,269       50,887       41,441       43,126  
  Net income available to common shareholders   38,977       38,837       50,592       41,265       42,949  
  Net income per common share - diluted   0.51       0.51       0.67       0.55       0.57  
  Book value per common share   30.38       29.58       29.19       28.43       28.59  
  Book value per common share - tangible (non-GAAP)   21.59       21.98       22.36       21.55       21.65  
  Return on average assets   0.83 %     0.86 %     1.19 %     0.95 %     1.00 %
  Return on average assets - tangible (non-GAAP)   0.94 %     0.96 %     1.29 %     1.03 %     1.09 %
  Return on average equity   6.78 %     7.12 %     9.50 %     7.64 %     8.12 %
  Return on average equity - tangible (non-GAAP)   10.10 %     10.39 %     13.08 %     10.68 %     11.42 %
  Return on average common equity   6.80 %     7.14 %     9.57 %     7.70 %     8.18 %
  Return on average common equity - tangible (non-GAAP)   10.15 %     10.44 %     13.21 %     10.79 %     11.54 %
  Noninterest income as a percentage of total revenue   31.86 %     33.85 %     37.27 %     33.36 %     35.66 %
Regulatory Capital Ratios (1):                  
  Common equity tier 1   11.18 %     11.77 %     12.75 %     12.77 %     12.63 %
  Tier 1   11.23 %     11.82 %     12.87 %     12.89 %     12.76 %
  Total   13.99 %     14.49 %     15.65 %     15.68 %     15.54 %
  Tier 1 leverage ratio   9.84 %     9.93 %     10.61 %     10.36 %     10.38 %
Asset Quality:                  
  Allowance for credit losses on loans to nonperforming loans   19.38 x     16.81 x     19.15 x     16.69 x     18.70 x
  Allowance for credit losses on loans to period end loans   1.11 %     1.09 %     1.08 %     1.08 %     1.08 %
  Nonperforming loans to period end loans   0.06 %     0.06 %     0.06 %     0.06 %     0.06 %
  Nonperforming assets to period end assets   0.05 %     0.05 %     0.04 %     0.05 %     0.04 %
  Net charge-offs (recoveries) to average loans (annualized)   0.01 %     %     0.02 %     0.01 %     0.02 %
  Net charge-offs (recoveries) $ 254     $ 19     $ 626     $ 382     $ 677  
                     
  Nonperforming loans $ 7,698     $ 7,982     $ 6,586     $ 7,424     $ 6,588  
  Former bank premises   885                          
  Foreclosed property   1,798       1,306       786       443       884  
  Total nonperforming assets $ 10,381     $ 9,288     $ 7,372     $ 7,867     $ 7,472  
  Loans past due 90 days and still accruing interest $ 1,863     $ 210     $ 15     $ 1,264     $ 510  
  Allowance for credit losses on loans $ 149,175     $ 134,187     $ 126,131     $ 123,923     $ 123,191  
Mortgage Banking:                  
  Loans originated, mortgage $ 491,921     $ 494,108     $ 300,699     $ 385,238     $ 421,571  
  Loans originated, joint venture   144,440       177,359       144,495       180,188       176,612  
  Total loans originated $ 636,361     $ 671,467     $ 445,194     $ 565,426     $ 598,183  
  Number of loans originated   1,679       1,750       1,181       1,489       1,637  
  Number of originators   169       166       161       160       159  
  Purchase %   91.84 %     92.37 %     89.94 %     89.46 %     91.49 %
  Loans sold $ 657,822     $ 596,009     $ 475,518     $ 629,120     $ 526,998  
  Rate lock asset $ 2,213     $ 2,186     $ 1,880     $ 1,150     $ 1,548  
  Gross realized gain on sales and fees as a % of loans originated   3.32 %     3.13 %     3.18 %     3.25 %     3.28 %
Other Ratios:                  
  Net interest margin   3.48 %     3.38 %     3.14 %     2.99 %     2.90 %
  Net interest margin-fully tax-equivalent (non-GAAP)   3.50 %     3.40 %     3.17 %     3.02 %     2.93 %
  Average earning assets/total average assets   90.03 %     90.23 %     90.32 %     90.57 %     90.43 %
  Average loans/average deposits   80.92 %     81.09 %     80.01 %     78.71 %     80.07 %
  Average noninterest deposits/total average deposits   31.30 %     30.88 %     29.68 %     30.14 %     30.19 %
  Period end equity/period end total assets   12.22 %     12.26 %     12.66 %     12.50 %     12.58 %
  Efficiency ratio (non-GAAP)   69.23 %     70.71 %     67.10 %     70.28 %     70.93 %
  (1) Current reporting period regulatory capital ratios are preliminary.            
               


TOWNEBANK
Selected Data (unaudited)
(dollars in thousands)
 
Investment Securities             % Change
  Q3   Q3   Q2   Q3 25 vs.   Q3 25 vs.
Available-for-sale securities, at fair value   2025       2024       2025     Q3 24   Q2 25
U.S. agency securities $ 364,889     $ 291,814     $ 345,808     25.04 %   5.52 %
U.S. Treasury notes   83,246       28,655       78,746     190.51 %   5.71 %
Municipal securities   478,711       455,722       438,490     5.04 %   9.17 %
Trust preferred and other corporate securities   143,291       91,525       115,126     56.56 %   24.46 %
Mortgage-backed securities issued by GSEs and GNMA   1,599,812       1,496,631       1,577,325     6.89 %   1.43 %
Allowance for credit losses   (1,350 )     (1,171 )     (1,520 )   15.29 %   (11.18)%
Total $ 2,668,599     $ 2,363,176     $ 2,553,975     12.92 %   4.49 %
Gross unrealized gains (losses) reflected in financial statements            
Total gross unrealized gains $ 10,741     $ 6,703     $ 6,048     60.24 %   77.60 %
Total gross unrealized losses   (98,606 )     (117,319 )     (119,186 )   (15.95)%   (17.27)%
Net unrealized gains (losses) and other adjustments on AFS securities $ (87,865 )   $ (110,616 )   $ (113,138 )   (20.57)%   (22.34)%
Held-to-maturity securities, at amortized cost                  
U.S. agency securities $ 68,140     $ 102,428     $ 92,973     (33.48)%   (26.71)%
U.S. Treasury notes   96,017       96,942       96,250     (0.95)%   (0.24)%
Municipal securities   5,439       5,342       5,414     1.82 %   0.46 %
Trust preferred corporate securities   2,081       2,133       2,094     (2.44)%   (0.62)%
Mortgage-backed securities issued by GSEs   5,166       5,577       5,201     (7.37)%   (0.67)%
Allowance for credit losses   (65 )     (77 )     (67 )   (15.58)%   (2.99)%
Total $ 176,778     $ 212,345     $ 201,865     (16.75)%   (12.43)%
                   
Total gross unrealized gains $ 283     $ 323     $ 214     (12.38)%   32.24 %
Total gross unrealized losses   (3,746 )     (7,929 )     (5,148 )   (52.76)%   (27.23)%
Net unrealized gains (losses) in HTM securities $ (3,463 )   $ (7,606 )   $ (4,934 )   (54.47)%   (29.81)%
Total unrealized gains (losses) on AFS and HTM securities $ (91,328 )   $ (118,222 )   $ (118,072 )   (22.75)%   (22.65)%
              % Change
Loans Held For Investment Q3   Q3   Q2   Q3 25 vs.   Q3 25 vs.
    2025       2024       2025     Q3 24   Q2 25
Real estate - construction and development $ 1,239,372     $ 1,118,669     $ 1,072,625     10.79 %   15.55 %
Commercial real estate - owner occupied   1,910,050       1,655,345       1,815,900     15.39 %   5.18 %
Commercial real estate - non-owner occupied   3,808,755       3,179,699       3,557,175     19.78 %   7.07 %
Real estate - multifamily   920,254       750,906       887,083     22.55 %   3.74 %
Residential 1-4 family   2,189,417       1,891,216       1,997,395     15.77 %   9.61 %
HELOC   556,386       408,565       480,610     36.18 %   15.77 %
Commercial and industrial business (C&I)   1,452,133       1,256,511       1,370,564     15.57 %   5.95 %
Government   504,543       521,681       510,902     (3.29)%   (1.24)%
Indirect   697,606       546,887       579,041     27.56 %   20.48 %
Consumer loans and other   100,517       83,039       88,378     21.05 %   13.74 %
Total $ 13,379,033     $ 11,412,518     $ 12,359,673     17.23 %   8.25 %
                   
              % Change
Deposits Q3   Q3   Q2   Q3 25 vs.   Q3 25 vs.
    2025       2024       2025     Q3 24   Q2 25
Noninterest-bearing demand $ 5,139,488     $ 4,267,628     $ 4,754,340     20.43 %   8.10 %
Interest-bearing:                  
Demand and money market accounts   8,273,987       6,990,103       7,654,317     18.37 %   8.10 %
Savings   331,168       319,970       332,108     3.50 %   (0.28)%
Certificates of deposits   2,786,292       2,785,469       2,587,951     0.03 %   7.66 %
Total   16,530,935       14,363,170       15,328,716     15.09 %   7.84 %
                                   


TOWNEBANK
Average Balances, Yields and Rate Paid (unaudited)
(dollars in thousands)
 
  Three Months Ended   Three Months Ended   Three Months Ended
  September 30, 2025   June 30, 2025   September 30, 2024
      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)
$ 12,662,595     $ 180,361     5.65 %   $ 12,304,172     $ 170,520     5.56 %   $ 11,419,428     $ 156,610     5.46 %
Taxable investment securities   2,627,476       23,203     3.53 %     2,598,093       23,361     3.60 %     2,376,102       20,940     3.53 %
Tax-exempt investment securities   176,193       1,913     4.34 %     172,083       1,802     4.19 %     168,768       1,686     4.00 %
Total securities   2,803,669       25,116     3.58 %     2,770,176       25,163     3.63 %     2,544,870       22,626     3.56 %
Interest-bearing deposits   1,096,909       10,597     3.83 %     1,045,727       10,241     3.93 %     1,226,445       15,249     4.95 %
Mortgage loans held for sale   204,949       3,351     6.54 %     172,102       2,770     6.44 %     208,513       3,247     6.23 %
Total earning assets   16,768,122       219,425     5.19 %     16,292,177       208,694     5.14 %     15,399,256       197,732     5.11 %
Less: allowance for loan losses   (139,408 )             (131,837 )             (125,331 )        
Total nonearning assets   1,995,385               1,896,640               1,754,216          
Total assets $ 18,624,099             $ 18,056,980             $ 17,028,141          
Liabilities and Equity:                                  
Interest-bearing deposits                                  
Demand and money market $ 7,791,983     $ 43,015     2.19 %   $ 7,590,290     $ 42,054     2.22 %   $ 6,917,622     $ 48,896     2.81 %
Savings   332,403       684     0.82 %     337,807       704     0.84 %     315,338       842     1.06 %
Certificates of deposit   2,626,140       25,444     3.84 %     2,560,313       25,394     3.98 %     2,723,437       32,390     4.73 %
Total interest-bearing deposits   10,750,526       69,143     2.55 %     10,488,410       68,152     2.61 %     9,956,397       82,128     3.28 %
Borrowings   49,111       (212 )   (1.69)%     34,799       (341 )   (3.88)%     33,867       (25 )   (0.29)%
Subordinated debt, net   267,755       2,461     3.68 %     272,448       2,609     3.83 %     256,309       2,237     3.49 %
Total interest-bearing liabilities   11,067,392       71,392     2.56 %     10,795,657       70,420     2.62 %     10,246,573       84,340     3.27 %
Demand deposits   4,898,006               4,685,835               4,305,783          
Other noninterest-bearing liabilities   378,717               387,166               370,736          
Total liabilities   16,344,115               15,868,658               14,923,092          
Shareholders’ equity   2,279,984               2,188,322               2,105,049          
Total liabilities and equity $ 18,624,099             $ 18,056,980             $ 17,028,141          
Net interest income (tax-equivalent basis) (4)     $ 148,033             $ 138,274             $ 113,392      
Reconciliation of Non-GAAP Financial Measures                                
                                   
Tax-equivalent basis adjustment       (1,081 )             (1,061 )             (1,110 )    
Net interest income (GAAP)     $ 146,952             $ 137,213             $ 112,282      
                                   
Interest rate spread (2)(4)         2.63 %           2.52 %           1.84 %
Interest expense as a percent of average earning assets       1.69 %           1.73 %           2.18 %
Net interest margin (tax-equivalent basis) (3)(4)       3.50 %           3.40 %           2.93 %
Total cost of deposits         1.75 %           1.80 %           2.29 %
                                   

(1) Yields and interest income are presented on a tax-equivalent basis using the federal statutory tax rate of 21%.
(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)
 
  Nine Months Ended   Nine Months Ended
  September 30, 2025   September 30, 2024
      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) $ 12,169,050     $ 503,947     5.54 %   $ 11,423,458     $ 463,794     5.42 %
Taxable investment securities   2,568,420       67,866     3.52 %     2,395,007       61,327     3.41 %
Tax-exempt investment securities   174,786       5,575     4.25 %     162,294       4,756     3.91 %
Total securities   2,743,206       73,441     3.57 %     2,557,301       66,083     3.45 %
Interest-bearing deposits   1,113,719       32,639     3.92 %     1,192,319       43,995     4.93 %
Mortgage loans held for sale   180,618       8,774     6.48 %     163,755       7,908     6.44 %
Total earning assets   16,206,593       618,801     5.10 %     15,336,833       581,780     5.07 %
Less: allowance for loan losses   (131,892 )             (126,508 )        
Total nonearning assets   1,894,785               1,748,215          
Total assets $ 17,969,486             $ 16,958,540          
Liabilities and Equity:                      
Interest-bearing deposits                      
Demand and money market $ 7,555,758     $ 125,675     2.22 %   $ 6,880,752     $ 145,042     2.82 %
Savings   327,517       2,102     0.86 %     320,696       2,569     1.07 %
Certificates of deposit   2,575,944       76,651     3.98 %     2,674,509       94,928     4.74 %
Total interest-bearing deposits   10,459,219       204,428     2.61 %     9,875,957       242,539     3.28 %
Borrowings   37,910       (854 )   (2.97)%     115,171       4,679     5.34 %
Subordinated debt, net   266,786       7,374     3.69 %     256,094       6,710     3.49 %
Total interest-bearing liabilities   10,763,915       210,948     2.62 %     10,247,222       253,928     3.31 %
Demand deposits   4,622,418               4,265,971          
Other noninterest-bearing liabilities   373,274               381,547          
Total liabilities   15,759,607               14,894,740          
Shareholders’ equity   2,209,879               2,063,800          
Total liabilities and equity $ 17,969,486             $ 16,958,540          
Net interest income (tax-equivalent basis)(4)     $ 407,853             $ 327,852      
Reconciliation of Non-GAAP Financial Measures                    
Tax-equivalent basis adjustment       (3,210 )             (3,304 )    
Net interest income (GAAP)     $ 404,643             $ 324,548      
                       
Interest rate spread (2)(4)         2.48 %           1.76 %
Interest expense as a percent of average earning assets       1.74 %           2.21 %
Net interest margin (tax-equivalent basis) (3)(4)       3.36 %           2.86 %
Total cost of deposits         1.81 %           2.29 %
                       
(1) Yields and interest income are presented on a tax-equivalent basis using the federal statutory rate of 21%.
(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 share data)
   
     
  September 30,   December 31,
    2025       2024  
  (unaudited)   (audited)
ASSETS      
Cash and due from banks $ 152,647     $ 108,750  
Interest-bearing deposits at FRB   974,514       1,127,878  
Interest-bearing deposits in financial institutions   122,819       102,847  
Total Cash and Cash Equivalents   1,249,980       1,339,475  
Securities available for sale, at fair value (amortized cost of $2,757,814 and $2,509,970, and allowance for credit losses of $1,350 and $1,326 at September 30, 2025 and December 31, 2024, respectively)   2,668,599       2,353,365  
Securities held to maturity, at amortized cost (fair value of $173,380 and $203,883 at September 30, 2025 and December 31, 2024, respectively)   176,843       212,352  
Less: allowance for credit losses   (65 )     (77 )
Securities held to maturity, net of allowance for credit losses   176,778       212,275  
Other equity securities   12,420       12,100  
FHLB stock   16,341       12,136  
Total Securities   2,874,138       2,589,876  
Mortgage loans held for sale   212,507       200,460  
Loans, net of unearned income and deferred costs   13,379,033       11,459,055  
Less: allowance for credit losses on loans   (149,175 )     (123,923 )
Net Loans   13,229,858       11,335,132  
Premises and equipment, net   422,134       368,876  
Goodwill   591,691       457,619  
Other intangible assets, net   101,875       60,171  
BOLI   334,527       279,802  
Other assets   665,810       615,479  
TOTAL ASSETS $ 19,682,520     $ 17,246,890  
       
LIABILITIES AND EQUITY      
Deposits:      
Noninterest-bearing demand $ 5,139,488     $ 4,253,053  
Interest-bearing:      
Demand and money market accounts   8,273,987       7,329,669  
Savings   331,168       311,841  
Certificates of deposit   2,786,292       2,542,735  
Total Deposits   16,530,935       14,437,298  
Advances from the FHLB   52,646       3,218  
Subordinated debt, net   283,847       260,001  
Repurchase agreements and other borrowings   25,740       33,683  
Total Borrowings   362,233       296,902  
Other liabilities   384,321       357,063  
TOTAL LIABILITIES   17,277,489       15,091,263  
Preferred stock, authorized and unissued shares - 2,000,000          
Common stock, $1.667 par value: 150,000,000 shares authorized;      
78,928,417 and 75,255,205 shares issued at      
September 30, 2025 and December 31, 2024, respectively   131,574       125,455  
Capital surplus   1,253,666       1,122,147  
Retained earnings   1,075,657       1,007,775  
Common stock issued to deferred compensation trust, at cost:      
1,112,008 and 1,046,121 shares at September 30, 2025 and December 31, 2024, respectively   (24,130 )     (21,868 )
Deferred compensation trust   24,130       21,868  
Accumulated other comprehensive income (loss)   (63,370 )     (116,045 )
TOTAL SHAREHOLDERS’ EQUITY   2,397,527       2,139,332  
Noncontrolling interest   7,504       16,295  
TOTAL EQUITY   2,405,031       2,155,627  
TOTAL LIABILITIES AND EQUITY $ 19,682,520     $ 17,246,890  
 


TOWNEBANK
Consolidated Statements of Income (unaudited)
(dollars in thousands, except per share data)
               
               
  Three Months Ended   Nine Months Ended
  September 30,   September 30,
    2025       2024       2025       2024  
INTEREST INCOME:              
Loans, including fees $ 179,612     $ 155,792     $ 501,705     $ 461,316  
Investment securities   24,784       22,334       72,473       65,257  
Interest-bearing deposits in financial institutions and federal funds sold   10,597       15,249       32,639       43,995  
Mortgage loans held for sale   3,351       3,247       8,774       7,908  
Total interest income   218,344       196,622       615,591       578,476  
INTEREST EXPENSE:              
Deposits   69,143       82,128       204,428       242,539  
Advances from the FHLB   258       29       407       3,408  
Subordinated debt, net   2,461       2,237       7,374       6,710  
Repurchase agreements and other borrowings   (470 )     (54 )     (1,261 )     1,271  
Total interest expense   71,392       84,340       210,948       253,928  
Net interest income   146,952       112,282       404,643       324,548  
PROVISION FOR CREDIT LOSSES   15,276       (1,100 )     24,106       (2,154 )
Net interest income after provision for credit losses   131,676       113,382       380,537       326,702  
NONINTEREST INCOME:              
Residential mortgage banking income, net   13,123       11,786       37,046       35,685  
Insurance commissions and related income, net   25,791       25,727       77,893       75,297  
Property management income, net   13,529       11,221       48,585       42,306  
Service charges on deposit accounts   4,056       3,117       11,025       9,548  
Credit card merchant fees, net   1,909       1,830       5,400       5,042  
Investment income, net   3,933       2,835       10,166       7,759  
BOLI   2,157       1,886       6,021       6,966  
Gain on sale of equity investment         20       2,000       20  
Other income   4,222       3,814       12,379       9,345  
Net gain on investment securities   (7 )           (7 )     74  
Total noninterest income   68,713       62,236       210,508       192,042  
NONINTEREST EXPENSE:              
Salaries and employee benefits   78,964       72,123       232,404       214,849  
Occupancy   9,988       9,351       29,112       28,490  
Furniture and equipment   5,044       4,657       14,436       13,769  
Amortization - intangibles   4,427       3,130       11,431       9,675  
Software   7,518       6,790       20,647       19,947  
Data processing   4,630       4,701       12,974       13,223  
Professional fees   2,999       4,720       8,191       11,689  
Advertising and marketing   3,759       4,162       11,460       12,268  
FDIC and other insurance   3,002       2,797       8,895       9,287  
Acquisition related expenses   17,814       460       36,971       1,073  
Other expenses   15,593       14,009       48,418       42,205  
Total noninterest expense   153,738       126,900       434,939       376,475  
Income before income tax expense and noncontrolling interest   46,651       48,718       156,106       142,269  
Provision for income tax expense   7,357       5,592       26,656       20,977  
Net income $ 39,294     $ 43,126     $ 129,450     $ 121,292  
Net income attributable to noncontrolling interest   (317 )     (177 )     (1,044 )     (800 )
Net income attributable to TowneBank $ 38,977     $ 42,949     $ 128,406     $ 120,492  
Per common share information              
Basic earnings $ 0.51     $ 0.57     $ 1.70     $ 1.61  
Diluted earnings $ 0.51     $ 0.57     $ 1.69     $ 1.61  
Cash dividends declared $ 0.27     $ 0.25     $ 0.79     $ 0.75  
                               


TOWNEBANK
Consolidated Balance Sheets - Five Quarter Trend
(dollars in thousands, except share data)
 
                   
  September 30,   June 30,   March 31,   December 31,   September 30,
    2025       2025       2025       2024       2024  
  (unaudited)   (unaudited)   (unaudited)   (audited)   (unaudited)
ASSETS                  
Cash and due from banks $ 152,647     $ 149,462     $ 126,526     $ 108,750     $ 131,068  
Interest-bearing deposits at FRB   974,514       838,315       1,090,555       1,127,878       1,061,596  
Interest-bearing deposits in financial institutions   122,819       123,911       100,249       102,847       103,400  
Total Cash and Cash Equivalents   1,249,980       1,111,688       1,317,330       1,339,475       1,296,064  
Securities available for sale   2,668,599       2,553,975       2,470,171       2,353,365       2,363,176  
Securities held to maturity   176,843       201,932       202,018       212,352       212,422  
Less: allowance for credit losses   (65 )     (67 )     (68 )     (77 )     (77 )
Securities held to maturity, net of allowance for credit losses   176,778       201,865       201,950       212,275       212,345  
Other equity securities   12,420       12,248       12,223       12,100       12,681  
FHLB stock   16,341       13,428       12,425       12,136       12,134  
Total Securities   2,874,138       2,781,516       2,696,769       2,589,876       2,600,336  
Mortgage loans held for sale   212,507       238,742       168,510       200,460       264,320  
Loans, net of unearned income and deferred costs   13,379,033       12,359,673       11,652,746       11,459,055       11,412,518  
Less: allowance for credit losses   (149,175 )     (134,187 )     (126,131 )     (123,923 )     (123,191 )
Net Loans   13,229,858       12,225,486       11,526,615       11,335,132       11,289,327  
Premises and equipment, net   422,134       392,056       373,111       368,876       365,764  
Goodwill   591,691       499,709       457,619       457,619       457,619  
Other intangible assets, net   101,875       74,186       57,145       60,171       63,265  
BOLI   334,527       295,434       280,344       279,802       279,325  
Other assets   665,810       645,779       634,437       615,479       572,000  
TOTAL ASSETS $ 19,682,520     $ 18,264,596     $ 17,511,880     $ 17,246,890     $ 17,188,020  
LIABILITIES AND EQUITY                  
Deposits:                  
Noninterest-bearing demand $ 5,139,488     $ 4,754,340     $ 4,313,553     $ 4,253,053     $ 4,267,628  
Interest-bearing:                  
Demand and money market accounts   8,273,987       7,654,317       7,463,355       7,329,669       6,990,103  
Savings   331,168       332,108       312,151       311,841       319,970  
Certificates of deposit   2,786,292       2,587,951       2,519,489       2,542,735       2,785,469  
Total Deposits   16,530,935       15,328,716       14,608,548       14,437,298       14,363,170  
Advances from the FHLB   52,646       12,838       3,029       3,218       3,405  
Subordinated debt, net   283,847       260,430       260,198       260,001       256,444  
Repurchase agreements and other borrowings   25,740       20,847       20,875       33,683       30,970  
Total Borrowings   362,233       294,115       284,102       296,902       290,819  
Other liabilities   384,321       402,823       402,252       357,063       371,316  
TOTAL LIABILITIES   17,277,489       16,025,654       15,294,902       15,091,263       15,025,305  
                   
Preferred stock                            
Common stock, $1.667 par value   131,574       125,728       125,679       125,455       125,139  
Capital surplus   1,253,666       1,131,536       1,123,330       1,122,147       1,117,279  
Retained earnings   1,075,657       1,057,184       1,039,518       1,007,775       985,343  
Common stock issued to deferred compensation                  
trust, at cost   (24,130 )     (23,977 )     (21,969 )     (21,868 )     (22,224 )
Deferred compensation trust   24,130       23,977       21,969       21,868       22,224  
Accumulated other comprehensive income (loss)   (63,370 )     (83,103 )     (87,869 )     (116,045 )     (81,482 )
TOTAL SHAREHOLDERS’ EQUITY   2,397,527       2,231,345       2,200,658       2,139,332       2,146,279  
Noncontrolling interest   7,504       7,597       16,320       16,295       16,436  
TOTAL EQUITY   2,405,031       2,238,942       2,216,978       2,155,627       2,162,715  
TOTAL LIABILITIES AND EQUITY $ 19,682,520     $ 18,264,596     $ 17,511,880     $ 17,246,890     $ 17,188,020  
                                       


TOWNEBANK
Consolidated Statements of Income - Five Quarter Trend (unaudited)
(dollars in thousands, except share data)
   
   
  Three Months Ended
  September 30,   June 30,   March 31,   December 31,   September 30,
    2025       2025       2025       2024       2024  
INTEREST INCOME:                  
Loans, including fees $ 179,612     $ 169,772     $ 152,322     $ 154,933     $ 155,792  
Investment securities   24,784       24,850       22,839       22,236       22,334  
Interest-bearing deposits in financial institutions and federal funds sold   10,597       10,241       11,801       15,796       15,249  
Mortgage loans held for sale   3,351       2,770       2,653       3,087       3,247  
Total interest income   218,344       207,633       189,615       196,052       196,622  
INTEREST EXPENSE:                  
Deposits   69,143       68,152       67,133       75,885       82,128  
Advances from the FHLB   258       124       25       26       29  
Subordinated debt, net   2,461       2,609       2,304       2,261       2,237  
Repurchase agreements and other borrowings   (470 )     (465 )     (325 )     (177 )     (54 )
Total interest expense   71,392       70,420       69,137       77,995       84,340  
Net interest income   146,952       137,213       120,478       118,057       112,282  
PROVISION FOR CREDIT LOSSES   15,276       6,410       2,420       1,606       (1,100 )
Net interest income after provision for credit losses   131,676       130,803       118,058       116,451       113,382  
NONINTEREST INCOME:                  
Residential mortgage banking income, net   13,123       13,561       10,361       11,272       11,786  
Insurance commissions and related income, net   25,791       25,677       26,424       23,265       25,727  
Property management income, net   13,529       15,556       19,500       8,186       11,221  
Service charges on deposit accounts   4,056       3,642       3,327       3,289       3,117  
Credit card merchant fees, net   1,909       1,794       1,697       1,486       1,830  
Investment income, net   3,933       3,158       3,075       3,195       2,835  
BOLI   2,157       1,992       1,872       4,478       1,886  
Other income   4,222       4,849       5,310       3,932       3,834  
Net gain on investment securities   (7 )                        
Total noninterest income   68,713       70,229       71,566       59,103       62,236  
NONINTEREST EXPENSE:                  
Salaries and employee benefits   78,964       78,362       75,078       74,399       72,123  
Occupancy   9,988       9,791       9,333       9,819       9,351  
Furniture and equipment   5,044       4,770       4,621       4,850       4,657  
Amortization - intangibles   4,427       3,979       3,026       3,095       3,130  
Software   7,518       6,835       6,293       6,870       6,790  
Data processing   4,630       4,510       3,835       3,788       4,701  
Professional fees   2,999       2,539       2,653       3,446       4,720  
Advertising and marketing   3,759       3,228       4,472       3,359       4,162  
Other expenses   36,409       36,651       21,225       17,815       17,266  
Total noninterest expense   153,738       150,665       130,536       127,441       126,900  
Income before income tax expense and noncontrolling interest   46,651       50,367       59,088       48,113       48,718  
Provision for income tax expense   7,357       11,098       8,201       6,672       5,592  
Net income   39,294       39,269       50,887       41,441       43,126  
Net income attributable to noncontrolling interest   (317 )     (432 )     (295 )     (176 )     (177 )
Net income attributable to TowneBank $ 38,977     $ 38,837     $ 50,592     $ 41,265     $ 42,949  
Per common share information                  
Basic earnings $ 0.51     $ 0.52     $ 0.67     $ 0.55     $ 0.57  
Diluted earnings $ 0.51     $ 0.51     $ 0.67     $ 0.55     $ 0.57  
Basic weighted average shares outstanding   76,417,605       75,240,678       75,149,668       75,034,688       74,940,827  
Diluted weighted average shares outstanding   76,763,640       75,540,822       75,527,713       75,318,578       75,141,661  
Cash dividends declared $ 0.27     $ 0.27     $ 0.25     $ 0.25     $ 0.25  
                   


TOWNEBANK
Banking Segment Financial Information (unaudited)
(dollars in thousands)
 
                   
  Three Months Ended   Nine Months Ended   Increase/(Decrease)
  September 30,   June 30,   September 30,   YTD 2025 over 2024
    2025       2024       2025       2025       2024     Amount   Percent
                                               
Revenue                          
Net interest income $ 145,746     $ 111,569     $ 136,325     $ 401,654     $ 322,280     $ 79,374     24.63 %
Service charges on deposit accounts   4,056       3,117       3,642       11,025       9,548       1,477     15.47 %
Credit card merchant fees   1,909       1,830       1,794       5,400       5,042       358     7.10 %
Investment income, net   3,933       2,835       3,158       10,166       7,759       2,407     31.02 %
Other income   4,632       4,828       5,750       16,876       13,096       3,780     28.86 %
Subtotal   14,530       12,610       14,344       43,467       35,445       8,022     22.63 %
Net gain/(loss) on investment securities   (7 )                 (7 )     74       (81 )   (109.46)%
Total noninterest income   14,523       12,610       14,344       43,460       35,519       7,941     22.36 %
Total revenue   160,269       124,179       150,669       445,114       357,799       87,315     24.40 %
                           
Provision for credit losses   15,148       (1,043 )     6,212       23,727       (2,189 )     25,916     (1,183.92)%
                           
Expenses                          
Salaries and employee benefits   53,053       47,148       52,850       155,588       140,261       15,327     10.93 %
Occupancy   7,571       6,963       7,342       21,892       21,217       675     3.18 %
Furniture and equipment   4,302       3,878       4,081       12,191       11,336       855     7.54 %
Amortization of intangible assets   2,417       1,072       1,969       5,367       3,352       2,015     60.11 %
Software   5,096       4,336       4,427       13,545       12,813       732     5.71 %
Data processing   2,853       2,765       2,840       8,301       7,922       379     4.78 %
Accounting and professional fees   2,514       4,123       1,934       6,458       9,929       (3,471 )   (34.96)%
Advertising and marketing   2,167       2,141       1,883       6,947       6,759       188     2.78 %
FDIC and other insurance   2,672       2,493       2,676       7,938       8,475       (537 )   (6.34)%
Acquisition related   17,761       460       17,256       35,437       606       34,831     N/M
Other expenses   13,272       10,356       11,276       36,519       30,711       5,808     18.91 %
Total expenses   113,678       85,735       108,534       310,183       253,381       56,802     22.42 %
Income before income tax, corporate allocation and noncontrolling interest   31,443       39,487       35,923       111,204       106,607       4,597     4.31 %
Corporate allocation   1,544       1,223       1,535       4,475       3,524       951     26.99 %
Income before income tax provision and noncontrolling interest   32,987       40,710       37,458       115,679       110,131       5,548     5.04 %
Provision for income tax expense   3,881       3,495       7,814       16,375       12,731       3,644     28.62 %
Net income   29,106       37,215       29,644       99,304       97,400       1,904     1.95 %
Noncontrolling interest   (112 )     (29 )     (124 )     (194 )     34       (228 )   (670.59)%
Net income attributable to TowneBank $ 28,994     $ 37,186     $ 29,520     $ 99,110     $ 97,434     $ 1,676     1.72 %
                           
Efficiency ratio (non-GAAP)   69.42 %     68.18 %     70.73 %     68.48 %     69.89 %   (1.41)%   (2.02)%
                                               


TOWNEBANK
Mortgage Segment Financial Information (unaudited)
(dollars in thousands)
 
       
  Three Months Ended   Nine Months Ended   Increase/(Decrease)
  September 30,   June 30,   September 30,   YTD 2025 over 2024
    2025       2024       2025       2025       2024     Amount   Percent
Revenue                          
Residential mortgage brokerage income, net $ 13,724     $ 12,211     $ 14,083     $ 38,388     $ 37,006     $ 1,382     3.73 %
Income (loss) from unconsolidated subsidiary   107       51       83       232       148       84     56.76 %
Net interest and other income   1,414       904       1,095       3,620       2,903       717     24.70 %
Total revenue   15,245       13,166       15,261       42,240       40,057       2,183     5.45 %
                           
Provision for credit losses   128       (57 )     198       379       35       344     982.86 %
                           
Expenses                          
Salaries and employee benefits   7,574       6,513       7,315       21,920       19,972       1,948     9.75 %
Occupancy   956       975       1,098       2,993       3,099       (106 )   (3.42)%
Furniture and equipment   151       151       151       497       478       19     3.97 %
Amortization of intangible assets                           287       (287 )   (100.00)%
Software   800       744       790       2,317       2,407       (90 )   (3.74)%
Data processing   209       205       198       570       523       47     8.99 %
Accounting and professional fees   117       219       157       500       595       (95 )   (15.97)%
Advertising and marketing   500       407       420       1,309       1,237       72     5.82 %
FDIC and other insurance   128       91       117       341       287       54     18.82 %
Acquisition related   53             1,481       1,534             1,534     100.00 %
Other expenses   2,466       2,327       2,728       7,657       7,084       573     8.09 %
Total expenses   12,954       11,632       14,455       39,638       35,969       3,669     10.20 %
                           
Income before income tax, corporate allocation and noncontrolling interest   2,163       1,591       608       2,223       4,053       (1,830 )   (45.15)%
Corporate allocation   (502 )     (484 )     (519 )     (1,371 )     (1,322 )     (49 )   3.71 %
Income before income tax provision and noncontrolling interest   1,661       1,107       89       852       2,731       (1,879 )   (68.80)%
Provision for income tax expense   319       218       (41 )     38       497       (459 )   (92.35)%
Net income   1,342       889       130       814       2,234       (1,420 )   (63.56)%
Noncontrolling interest   (205 )     (285 )     (308 )     (630 )     (812 )     182     22.41 %
Net income attributable to TowneBank $ 1,137     $ 604     $ (178 )   $ 184     $ 1,422     $ (1,238 )   (87.06)%
                           
Efficiency ratio excluding gain on equity investment (non-GAAP)   84.97 %     88.35 %     94.72 %     93.84 %     89.08 %     4.76 %   5.34 %
                                                     


TOWNEBANK
Resort Property Management Segment Financial Information (unaudited)
(dollars in thousands)
 
       
  Three Months Ended   Nine Months Ended   Increase/(Decrease)
  September 30,   June 30,   September 30,   YTD 2025 over 2024
    2025       2024       2025       2025       2024     Amount   Percent
Revenue                          
Property management fees, net $ 13,529     $ 11,221     $ 15,556       48,585       42,306       6,279     14.84 %
Net interest and other income   44       2       24       81       104       (23 )   (22.12)%
Total revenue   13,573       11,223       15,580       48,666       42,410       6,256     14.75 %
                           
Expenses                          
Salaries and employee benefits   5,516       5,842       5,250       16,214       16,941       (727 )   (4.29)%
Occupancy   677       663       574       1,865       1,920       (55 )   (2.86)%
Furniture and equipment   431       453       385       1,222       1,316       (94 )   (7.14)%
Amortization of intangible assets   637       637       637       1,911       1,807       104     5.76 %
Software   885       964       877       2,622       2,495       127     5.09 %
Data processing   1,428       1,616       1,339       3,711       4,438       (727 )   (16.38)%
Accounting and professional fees   92       152       236       454       624       (170 )   (27.24)%
Advertising and marketing   941       1,379       750       2,582       3,750       (1,168 )   (31.15)%
FDIC and other insurance   60       60       113       240       169       71     42.01 %
Acquisition related                           466       (466 )   (100.00)%
Other expenses   (756 )     675       427       2,284       2,099       185     8.81 %
Total expenses   9,911       12,441       10,588       33,105       36,025       (2,920 )   (8.11)%
                           
Income before income tax, corporate allocation and noncontrolling interest   3,662       (1,218 )     4,992       15,561       6,385       9,176     143.71 %
Corporate allocation   (329 )           (316 )     (965 )           (965 )   N/M
Income before income tax provision and noncontrolling interest   3,333       (1,218 )     4,676       14,596       6,385       8,211     128.60 %
Provision for income tax expense   922       (200 )     1,227       3,778       1,839       1,939     105.44 %
Net income   2,411       (1,018 )     3,449       10,818       4,546       6,272     137.97 %
Noncontrolling interest         137             (220 )     (22 )     (198 )   (900.00)%
Net income attributable to TowneBank $ 2,411     $ (881 )   $ 3,449     $ 10,598     $ 4,524     $ 6,074     134.26 %
                           
Efficiency ratio excluding gain on equity investment (non-GAAP)   68.33 %     105.18 %     63.87 %     64.10 %     80.68 %   (16.58)%   (20.55)%
                                               


TOWNEBANK
Insurance Segment Financial Information (unaudited)
(dollars in thousands)
 
                   
  Three Months Ended   Nine Months Ended   Increase/(Decrease)
  September 30,   June 30,   September 30,   YTD 2025 over 2024
    2025       2024       2025       2025       2024     Amount   Percent
Commission and fee income                          
Property and casualty $ 24,030     $ 23,157     $ 23,306     $ 70,659     $ 66,104     $ 4,555     6.89 %
Employee benefits   4,925       4,483       4,596       14,245       13,712       533     3.89 %
Specialized benefit services                           10       (10 )   (100.00)%
Total commissions and fees   28,955       27,640       27,902       84,904       79,826       5,078     6.36 %
                           
Contingency and bonus revenue   2,556       2,731       3,034       9,210       10,185       (975 )   (9.57)%
Other income   10       25       4       18       41       (23 )   (56.10)%
Total revenue   31,521       30,396       30,940       94,132       90,052       4,080     4.53 %
                           
Employee commission expense   4,943       4,446       5,008       15,001       13,728       1,273     9.27 %
Revenue, net of commission expense   26,578       25,950       25,932       79,131       76,324       2,807     3.68 %
                           
Salaries and employee benefits   12,821       12,620       12,947       38,682       37,675       1,007     2.67 %
Occupancy   784       750       777       2,362       2,254       108     4.79 %
Furniture and equipment   160       175       153       526       639       (113 )   (17.68)%
Amortization of intangible assets   1,373       1,421       1,373       4,153       4,229       (76 )   (1.80)%
Software   737       746       741       2,163       2,232       (69 )   (3.09)%
Data processing   140       115       133       392       340       52     15.29 %
Accounting and professional fees   276       226       212       779       541       238     43.99 %
Advertising and marketing   151       235       175       622       522       100     19.16 %
FDIC and other insurance   142       153       126       376       356       20     5.62 %
Acquisition related                           1       (1 )   (100.00)%
Other expenses   611       651       451       1,958       2,311       (353 )   (15.27)%
Total operating expenses   17,195       17,092       17,088       52,013       51,100       913     1.79 %
Income before income tax, corporate allocation and noncontrolling interest   9,383       8,858       8,844       27,118       25,224       1,894     7.51 %
Corporate allocation   (713 )     (739 )     (700 )     (2,139 )     (2,202 )     63     2.86 %
Income before income tax provision and noncontrolling interest   8,670       8,119       8,144       24,979       23,022       1,957     8.50 %
Provision for income tax expense   2,235       2,079       2,098       6,465       5,910       555     9.39 %
Net income   6,435       6,040       6,046       18,514       17,112       1,402     8.19 %
Noncontrolling interest                                     %
Net income attributable to TowneBank $ 6,435     $ 6,040     $ 6,046     $ 18,514     $ 17,112     $ 1,402     8.19 %
                           
Provision for income taxes   2,235       2,079       2,098       6,465       5,910       555     9.39 %
Depreciation, amortization and interest expense   1,481       1,550       1,489       4,497       4,632       (135 )   (2.91)%
EBITDA (non-GAAP) $ 10,151     $ 9,669     $ 9,633     $ 29,476     $ 27,654     $ 1,822     6.59 %
                           
Efficiency ratio (non-GAAP)   59.53 %     60.44 %     60.60 %     60.48 %     61.43 %   (0.95)%   (1.55)%
                                               


TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)
         
  Three Months Ended   Nine Months Ended
  September 30,   September 30,   June 30,   September 30,   September 30,
    2025       2024       2025       2025       2024  
                   
Return on average assets (GAAP)   0.83 %     1.00 %     0.86 %     0.96 %     0.95 %
Impact of excluding average goodwill and other intangibles and amortization   0.11 %     0.09 %     0.10 %     0.10 %     0.09 %
Return on average tangible assets (non-GAAP)   0.94 %     1.09 %     0.96 %     1.06 %     1.04 %
                   
Return on average equity (GAAP)   6.78 %     8.12 %     7.12 %     7.77 %     7.80 %
Impact of excluding average goodwill and other intangibles and amortization   3.32 %     3.30 %     3.27 %     3.41 %     3.31 %
Return on average tangible equity (non-GAAP)   10.10 %     11.42 %     10.39 %     11.18 %     11.11 %
                   
Return on average common equity (GAAP)   6.80 %     8.18 %     7.14 %     7.81 %     7.86 %
Impact of excluding average goodwill and other intangibles and amortization   3.35 %     3.36 %     3.30 %     3.44 %     3.37 %
Return on average tangible common equity
(non-GAAP)
  10.15 %     11.54 %     10.44 %     11.25 %     11.23 %
                   
Book value (GAAP) $ 30.38     $ 28.59     $ 29.58     $ 30.38     $ 28.59  
Impact of excluding average goodwill and other intangibles and amortization   (8.79 )     (6.94 )     (7.60 )     (8.79 )     (6.94 )
Tangible book value (non-GAAP) $ 21.59     $ 21.65     $ 21.98     $ 21.59     $ 21.65  
                   
Efficiency ratio (GAAP)   71.29 %     72.71 %     72.63 %     70.70 %     72.88 %
Impact of exclusions (2.06)%   (1.78)%   (1.92)%   (1.63)%   (1.86)%
Efficiency ratio (non-GAAP)   69.23 %     70.93 %     70.71 %     69.07 %     71.02 %
                   
Average assets (GAAP) $ 18,624,099     $ 17,028,141     $ 18,056,980     $ 17,969,486     $ 16,958,540  
Less: average goodwill and intangible assets   611,836       522,219       567,250       565,597       523,335  
Average tangible assets (non-GAAP) $ 18,012,263     $ 16,505,922     $ 17,489,730     $ 17,403,889     $ 16,435,205  
                   
Average equity (GAAP) $ 2,279,984     $ 2,105,049     $ 2,188,322     $ 2,209,879     $ 2,063,800  
Less: average goodwill and intangible assets   611,836       522,219       567,250       565,597       523,335  
Average tangible equity (non-GAAP) $ 1,668,148     $ 1,582,830     $ 1,621,072     $ 1,644,282     $ 1,540,465  
                   
Average common equity (GAAP) $ 2,272,509     $ 2,088,674     $ 2,180,687     $ 2,199,472     $ 2,047,482  
Less: average goodwill and intangible assets   611,836       522,219       567,250       565,597       523,335  
Average tangible common equity (non-GAAP) $ 1,660,673     $ 1,566,455     $ 1,613,437     $ 1,633,875     $ 1,524,147  
                   
Net income (GAAP) $ 38,977     $ 42,949     $ 38,837     $ 128,406     $ 120,492  
Amortization of intangibles, net of tax   3,497       2,473       3,143       9,030       7,643  
Tangible net income (non-GAAP) $ 42,474     $ 45,422     $ 41,980     $ 137,436     $ 128,135  
                   
Total revenue (GAAP) $ 215,665     $ 174,518     $ 207,442     $ 615,151     $ 516,590  
Net (gain)/loss on investment securities/equity investments   7       (20 )           (1,993 )     (94 )
Total revenue for efficiency calculation (non-GAAP) $ 215,672     $ 174,498     $ 207,442     $ 613,158     $ 516,496  
                   
Noninterest expense (GAAP) $ 153,738     $ 126,900     $ 150,665     $ 434,939     $ 376,475  
Less: amortization of intangibles   4,427       3,130       3,979       11,431       9,675  
Noninterest expense net of amortization (non-GAAP) $ 149,311     $ 123,770     $ 146,686     $ 423,508     $ 366,800  
                                       


TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands, except per share data)
                     
                     
Reconciliation of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability   Three Months Ended
    September 30,   June 30,   March 31,   December 31,   September 30,
      2025       2025       2025       2024       2024  
Net income available to common shareholders (GAAP)   $ 38,977     $ 38,837     $ 50,592     $ 41,265     $ 42,949  
                     
Adjustments                    
Plus: Acquisition-related expenses, net of tax     14,996       15,291       389       250       460  
Plus: Initial provision for acquired loans, net of tax     9,478       4,926                    
Plus: FDIC special assessment, net of tax                              
Plus: Resort Property Management deferred tax adjustment for repurchase of noncontrolling interests           2,286                    
Less: Gain on sale of equity investments, net of noncontrolling interest                       (99 )     (16 )
Total adjustments, net of taxes     24,474       22,503       389       151       444  
Core operating earnings, excluding certain items affecting comparability (non-GAAP)   $ 63,451     $ 61,340     $ 50,981     $ 41,416     $ 43,393  
Annualized interest impact of Series IV Notes, net of tax     42       42       42              
Core net income for diluted EPS (non-GAAP)   $ 63,493     $ 61,382     $ 51,023     $ 41,416     $ 43,393  
                     
Weighted average diluted shares     76,763,640       75,540,822       75,527,713       75,318,578       75,141,661  
Diluted EPS (GAAP)   $ 0.51     $ 0.51     $ 0.67     $ 0.55     $ 0.57  
Diluted EPS, excluding certain items affecting comparability (non-GAAP)   $ 0.83     $ 0.81     $ 0.68     $ 0.55     $ 0.58  
Average assets   $ 18,624,099     $ 18,056,980     $ 17,211,862     $ 17,349,128     $ 17,028,141  
Average tangible equity   $ 1,668,148     $ 1,621,072     $ 1,643,353     $ 1,628,420     $ 1,582,830  
Average tangible common equity   $ 1,660,673     $ 1,613,437     $ 1,627,145     $ 1,612,087     $ 1,566,455  
Return on average assets, excluding certain items affecting comparability (non-GAAP)     1.35 %     1.36 %     1.20 %     0.95 %     1.01 %
Return on average tangible equity, excluding certain items affecting comparability (non-GAAP)     15.92 %     15.95 %     13.17 %     10.72 %     11.53 %
Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP)     15.99 %     16.03 %     13.30 %     10.82 %     11.65 %
Efficiency ratio, excluding certain items affecting comparability (non-GAAP)     60.97 %     61.68 %     66.87 %     70.12 %     70.67 %
                     


TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands, except per share data)
         
         
Reconciliation of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability   Nine Months Ended
    September 30,   September 30,
      2025       2024  
Net income available to common shareholders (GAAP)   $ 128,406     $ 120,492  
         
Adjustments        
Plus: Acquisition-related expenses, net of tax     30,676       1,040  
Plus: FDIC special assessment, net of tax           711  
Plus: Initial provision for acquired loans, net of tax     14,404        
Plus: Resort Property Management deferred tax adjustment for repurchase of noncontrolling interests     2,286        
Less: Gain on sale of equity investments, net of noncontrolling interest and tax           (16 )
Total adjustments, net of taxes     47,366       1,735  
Core operating earnings, excluding certain items affecting comparability (non-GAAP)   $ 175,772     $ 122,227  
Annualized interest impact of Series IV Notes, net of tax     126        
Core net income for diluted EPS (non-GAAP)   $ 175,898     $ 122,227  
Weighted average diluted shares     75,952,187       75,043,848  
Diluted EPS (GAAP)   $ 1.69     $ 1.61  
Diluted EPS, excluding certain items affecting comparability (non-GAAP)   $ 2.32     $ 1.63  
Average assets   $ 17,969,486     $ 16,958,540  
Average tangible equity   $ 1,644,282     $ 1,540,465  
Average tangible common equity   $ 1,633,875     $ 1,524,147  
Return on average assets, excluding certain items affecting comparability (non-GAAP)     1.31 %     0.96 %
Return on average tangible equity, excluding certain items affecting comparability (non-GAAP)     15.03 %     11.26 %
Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP)     15.12 %     11.38 %
Efficiency ratio, excluding certain items affecting comparability (non-GAAP)     63.04 %     70.81 %
         



Primary Logo

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.

Share us

on your social networks:
AGPs

Get the latest news on this topic.

SIGN UP FOR FREE TODAY

No Thanks

By signing to this email alert, you
agree to our Terms & Conditions