TowneBank (the "Company" or "Towne") (NASDAQ: TOWN) today reported
earnings for the quarter ended March 31, 2024 of
$34.69 million, or $0.46 per diluted share, compared to
$38.33 million, or $0.52 per diluted share, for the quarter
ended March 31, 2023. Excluding acquisition-related items and
the incremental FDIC special assessment, adjusted earnings
(non-GAAP) for first quarter 2024 were $36.27 million, or
$0.48 per diluted share, compared to $46.30 million, or $0.62
per diluted share, for first quarter 2023.
"TowneBank had a solid start to the year with our
continued focus on maintaining healthy levels of capital and
liquidity. While we continue to see migration to interest-bearing
accounts, it was encouraging to generate overall annualized deposit
growth of nearly 7% for the first quarter, demonstrating the
durability of the TowneBank operating mode. Our ongoing growth
strategy for our ancillary lines of business, including insurance
and property management, continues to serve as a partial hedge to
offset rising deposit costs," said G. Robert Aston, Jr., Executive
Chairman.
Highlights for First Quarter
2024:
- Total revenues were $167.10 million, a decrease of
$17.04 million, or 9.25%, compared to first quarter 2023. Net
interest income declined $20.16 million, driven by higher
rates on deposits and the continuation a migration from
noninterest-bearing to interest-bearing deposits. The decrease was
partially offset by an increase in noninterest income of
$3.12 million.
- Total deposits were $14.13 billion, an increase of
$527.94 million, or 3.88%, compared to first quarter 2023.
Total deposits increased 1.68%, or $232.87 million, in
comparison to December 31, 2023, 6.74% on an annualized
basis.
- Noninterest-bearing deposits decreased 17.27%, to
$4.19 billion, compared to first quarter 2023 and represented
29.69% of total deposits. Compared to the linked quarter,
noninterest-bearing deposits decreased 3.42%.
- Loans held for investment were $11.45 billion, an increase
of $278.56 million, or 2.49%, compared to March 31, 2023,
and $123.32 million, or 1.09%, compared to December 31,
2023, 4.38% on an annualized basis.
- Annualized return on common shareholders' equity was 6.89%
compared to 8.05% in first quarter 2023. Annualized return on
average tangible common shareholders' equity (non-GAAP) was 9.98%
compared to 11.83% in first quarter 2023.
- Net interest margin was 2.72% for the quarter and
tax-equivalent net interest margin (non-GAAP) was 2.75%, including
purchase accounting accretion of 4 basis points, compared to the
prior year quarter net interest margin of 3.36% and tax-equivalent
net interest margin (non-GAAP) of 3.39%, including purchase
accounting accretion of 3 basis points.
- The effective tax rate was 17.31% in the quarter compared to
20.03% in first quarter 2023 and 8.46% in the linked quarter. The
lower tax rate in the linked quarter was due to a decline in state
tax expense in fourth quarter 2023, increases in tax-advantaged
income investments, and deferred taxes related to the sale of
Berkshire Hathaway HomeServices ("BHHS") Towne Realty.
"We reported strong asset quality metrics for the
quarter and continued to focus on our strategy to align loan and
deposit growth, which is reflective of our conservative approach to
Main Street banking. Additionally, we were excited to close our
first property management acquisition in Florida adding another
market to our unique portfolio of property management companies,"
stated William I. Foster III, President and Chief Executive
Officer.
Quarterly Net Interest
Income:
- Net interest income was $103.22 million compared to
$123.38 million for the quarter ended March 31, 2023. The
decrease was driven by interest-bearing deposit growth, coupled
with increased deposit costs, outpacing higher earning asset
yields.
- On an average basis, loans held for investment, with a yield of
5.37%, represented 74.54% of earning assets at March 31, 2024
compared to a yield of 4.88% and 74.61% of earning assets in the
first quarter of 2023.
- The cost of interest-bearing deposits was 3.24% for the quarter
ended March 31, 2024, compared to 1.66% in 2023. Interest
expense on deposits increased $44.45 million, or 131.00%, over
the prior year quarter driven by the increase in rate.
- Our total cost of deposits increased to 2.26% from 1.02% for
the quarter ended March 31, 2023 due to a combination of
higher interest-bearing deposit costs and the decline in
noninterest-bearing deposits.
- Average interest-earning assets totaled $15.27 billion at
March 31, 2024 compared to $14.87 billion at
March 31, 2023, an increase of 2.64%. The Company anticipates
$550 million of cash flows from its securities portfolio to be
available for reinvestment in the next two years.
- Average interest-bearing liabilities totaled
$10.21 billion, an increase of $1.30 billion, or 14.60%
from prior year. Average short term FHLB borrowings were
$174.73 million during the quarter compared to
$263.33 million one year prior.
Quarterly Provision for Credit
Losses:
- The quarterly provision for credit losses was a benefit of
$0.88 million compared to an expense of $11.67 million in
the prior year quarter and $2.45 million in the linked
quarter. Prior year quarter included $4.01 million in
provision related to the acquisition of Farmers Bankshares, Inc.
and its wholly owned subsidiary Farmers Bank ("Farmers").
- The allowance for credit losses on loans decreased
$0.63 million in first quarter 2024, compared to the linked
quarter. The decrease in the allowance was driven by continued
strength in credit quality and modest improvements in the
macroeconomic forecast scenarios utilized in our models, partially
offset by modest loan growth.
- Net loan charge-offs were $520 thousand in the quarter
compared to $3.87 million in the prior year quarter and
$68 thousand in the linked quarter.
- The ratio of net charge-offs to average loans on an annualized
basis was 0.02% in first quarter 2024, 0.14% in first quarter 2023,
and zero percent in the linked quarter.
- The allowance for credit losses on loans represented 1.10% of
total loans at March 31, 2024, 1.07% at March 31, 2023,
and 1.12% at December 31, 2023. The allowance for credit
losses on loans was 18.01 times nonperforming loans compared to
12.87 times at March 31, 2023 and 18.48 times at
December 31, 2023.
Quarterly Noninterest
Income:
- Total noninterest income was $63.88 million compared to
$60.77 million in 2023, an increase of $3.12 million, or
5.13%.
- Residential mortgage banking income was $10.48 million
compared to $9.37 million in first quarter 2023. Loan volume
increased to $424.39 million in first quarter 2024 from
$416.22 million in first quarter 2023. The number of loans
originated was consistent with first quarter 2023, but higher
per-loan average balances resulted in higher production volume.
Residential purchase activity comprised 95.66% of production volume
in the first quarter of 2024 compared to 94.99% in the prior year
quarter.
- Gross margins on residential mortgage sales increased 23 basis
points to 3.34% in the current quarter from 3.11% in first quarter
2023.
- Total net insurance commissions increased $2.72 million,
or 11.90%, to $25.54 million in first quarter 2024 compared to
2023. This increase was attributable to increases in property and
casualty commissions which were driven by organic growth and a full
quarter of income in 2024 related to the 2023 Manry-Rawls, LLC
acquisition.
- Property management fee revenue increased 7.97%, or
$1.24 million, to $16.77 million in first quarter 2024
compared to 2023. Reservation income increased compared to the
prior year due to an acquisition in March 2024 and a full quarter
of revenue from an acquisition in March 2023.
Quarterly Noninterest
Expense:
- Total noninterest expense was $125.59 million compared to
$124.40 million in 2023, an increase of $1.19 million, or
0.96%. Increases in salaries and employee benefits of
$1.96 million, FDIC and other insurance of $2.75 million,
and various expense line items, were partially offset by a decrease
in acquisition expenses of $5.37 million.
- Salaries and benefits expense increases were driven by annual
base salary adjustments effective third quarter 2023,
acquisition-related increases in the number of employees, and
higher health insurance costs. The increases were partially offset
by a decline in incentive accruals and decreases in our Realty
segment related to cost reductions in our mortgage business and the
sale of BHHS Towne Realty in 2023.
- FDIC and other insurance increased due to a higher assessment
rate and an additional expense accrual of $1.29 million before
taxes, pursuant to the revised estimated FDIC special
assessment.
Consolidated Balance Sheet
Highlights:
- In first quarter 2024, management continued its focus on
strategic balance sheet management with a concentration on
controlled loan growth and maintaining liquidity.
- Total assets were $16.88 billion for the quarter ended
March 31, 2024, a $49.20 million increase compared to
$16.84 billion at December 31, 2023. Total assets
increased $153.76 million, or 0.92%, from $16.73 billion
at March 31, 2023.
- Loans held for investment increased $278.56 million, or
2.49%, compared to prior year and $123.32 million, or 1.09%,
compared to the linked quarter, 4.38% on an annualized basis.
- Mortgage loans held for sale decreased $6.43 million, or
4.09%, compared to prior year but increased $0.74 million, or
0.49%, compared to the linked quarter.
- Total deposits increased $527.94 million, or 3.88%,
compared to prior year, primarily in interest- bearing demand and
time deposits. In the linked quarter comparison, total deposits
increased $232.87 million, or 6.74% on an annualized
basis.
- Noninterest-bearing deposits decreased $875.23 million or
17.27%, compared to prior year, and $148.57 million, or 3.42%,
compared to the linked quarter.
- Total borrowings decreased $515.27 million, or 63.91%,
compared to first quarter 2023 and $201.60 million, or 40.93%,
compared to the linked quarter driven by declines in short-term
FHLB advances.
Investment Securities:
- Total investment securities were $2.54 billion compared to
$2.64 billion at December 31, 2023 and $2.67 billion
at March 31, 2023. The weighted average duration of the
portfolio at March 31, 2024 was 3.3 years. The carrying value
of the available for sale debt securities portfolio included net
unrealized losses of $170.84 million at March 31, 2024,
compared to $162.12 million at December 31, 2023 and
$165.71 million at March 31, 2023, with the changes
related to market valuation adjustments due to changing interest
rates.
Loans and Asset Quality:
- Total loans held for investment were $11.45 billion at
March 31, 2024 compared to $11.33 billion at
December 31, 2023 and $11.17 billion at March 31,
2023.
- Nonperforming assets were $7.77 million, or 0.05% of total
assets, compared to $9.89 million, or 0.06%, at March 31,
2023.
- Nonperforming loans were 0.06% of period end loans at
March 31, 2024, compared to 0.08% at March 31, 2023.
- Foreclosed property increased to $780 thousand from
$564 thousand at March 31, 2023.
Deposits and Borrowings:
- Total deposits were $14.13 billion compared to
$13.89 billion at December 31, 2023 and
$13.60 billion at March 31, 2023.
- The ratio of period end loans held for investment to deposits
was 81.07% compared to 81.54% at December 31, 2023 and 82.17%
at March 31, 2023.
- Noninterest-bearing deposits were 29.69% of total deposits at
March 31, 2024 compared to 31.26% at December 31, 2023
and 37.28% at March 31, 2023. Noninterest-bearing deposits
declined $0.88 billion, or 17.27%, compared to March 31,
2023, primarily in commercial and escrow accounts.
- Total borrowings were $290.98 million compared to
$492.58 million at December 31, 2023 and
$806.25 million at March 31, 2023.
Capital:
- Common equity tier 1 capital ratio of 12.20%(1).
- Tier 1 leverage capital ratio of 10.15%(1).
- Tier 1 risk-based capital ratio of 12.32%(1).
- Total risk-based capital ratio of 15.10% (1).
- Book value per common share was $27.33 compared to $27.24 at
December 31, 2023 and $26.40 at March 31, 2023.
- Tangible book value per common share (non-GAAP) was $20.31
compared to $20.28 at December 31, 2023 and $19.04 at
March 31, 2023.
(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.
Now celebrating 25 years, TowneBank operates 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
$16.88 billion as of March 31, 2024, 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 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; costs or
difficulties related to the integration of the businesses we have
acquired may be greater than expected; expected 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, 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, 757-638-6780William 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 |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
Income and Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
$ |
167,102 |
|
|
$ |
155,546 |
|
|
$ |
172,864 |
|
|
$ |
181,568 |
|
|
$ |
184,144 |
|
Net income |
|
|
35,127 |
|
|
|
28,545 |
|
|
|
44,745 |
|
|
|
43,368 |
|
|
|
38,478 |
|
Net income available to common shareholders |
|
|
34,687 |
|
|
|
28,804 |
|
|
|
44,862 |
|
|
|
41,716 |
|
|
|
38,333 |
|
Net income per common share – diluted |
|
|
0.46 |
|
|
|
0.39 |
|
|
|
0.60 |
|
|
|
0.56 |
|
|
|
0.52 |
|
Book value per common share |
|
|
27.33 |
|
|
|
27.24 |
|
|
|
26.28 |
|
|
|
26.36 |
|
|
|
26.40 |
|
Book value per common share – tangible (non-GAAP) |
|
|
20.31 |
|
|
|
20.28 |
|
|
|
19.28 |
|
|
|
19.31 |
|
|
|
19.04 |
|
Return on average assets |
|
|
0.83 |
% |
|
|
0.68 |
% |
|
|
1.06 |
% |
|
|
0.99 |
% |
|
|
0.95 |
% |
Return on average assets – tangible (non-GAAP) |
|
|
0.92 |
% |
|
|
0.77 |
% |
|
|
1.17 |
% |
|
|
1.10 |
% |
|
|
1.05 |
% |
Return on average equity |
|
|
6.84 |
% |
|
|
5.75 |
% |
|
|
8.96 |
% |
|
|
8.46 |
% |
|
|
7.99 |
% |
Return on average equity – tangible (non-GAAP) |
|
|
9.87 |
% |
|
|
8.53 |
% |
|
|
12.97 |
% |
|
|
12.35 |
% |
|
|
11.71 |
% |
Return on average common equity |
|
|
6.89 |
% |
|
|
5.79 |
% |
|
|
9.04 |
% |
|
|
8.52 |
% |
|
|
8.05 |
% |
Return on average common equity –
tangible (non-GAAP) |
|
|
9.98 |
% |
|
|
8.62 |
% |
|
|
13.11 |
% |
|
|
12.48 |
% |
|
|
11.83 |
% |
Noninterest income as a percentage of total revenue |
|
|
38.23 |
% |
|
|
30.74 |
% |
|
|
34.60 |
% |
|
|
37.43 |
% |
|
|
33.00 |
% |
Regulatory Capital Ratios (1): |
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 |
|
|
12.20 |
% |
|
|
12.18 |
% |
|
|
12.19 |
% |
|
|
11.99 |
% |
|
|
11.68 |
% |
Tier 1 |
|
|
12.32 |
% |
|
|
12.29 |
% |
|
|
12.31 |
% |
|
|
12.11 |
% |
|
|
11.80 |
% |
Total |
|
|
15.10 |
% |
|
|
15.06 |
% |
|
|
15.09 |
% |
|
|
14.88 |
% |
|
|
14.55 |
% |
Tier 1 leverage ratio |
|
|
10.15 |
% |
|
|
10.17 |
% |
|
|
10.06 |
% |
|
|
9.85 |
% |
|
|
9.86 |
% |
Asset Quality: |
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses on loans to nonperforming loans |
|
|
18.01 |
x |
|
|
18.48 |
x |
|
|
17.60 |
x |
|
|
18.09 |
x |
|
|
12.87 |
x |
Allowance for credit losses on loans to period end loans |
|
|
1.10 |
% |
|
|
1.12 |
% |
|
|
1.12 |
% |
|
|
1.10 |
% |
|
|
1.07 |
% |
Nonperforming loans to period end loans |
|
|
0.06 |
% |
|
|
0.06 |
% |
|
|
0.06 |
% |
|
|
0.06 |
% |
|
|
0.08 |
% |
Nonperforming assets to period end assets |
|
|
0.05 |
% |
|
|
0.05 |
% |
|
|
0.05 |
% |
|
|
0.05 |
% |
|
|
0.06 |
% |
Net charge-offs (recoveries) to average loans (annualized) |
|
|
0.02 |
% |
|
|
— |
% |
|
|
(0.04 |
)% |
|
|
— |
% |
|
|
0.14 |
% |
Net charge-offs (recoveries) |
|
$ |
520 |
|
|
$ |
68 |
|
|
$ |
(1,074 |
) |
|
$ |
9 |
|
|
$ |
3,874 |
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans |
|
$ |
6,987 |
|
|
$ |
6,843 |
|
|
$ |
7,110 |
|
|
$ |
6,827 |
|
|
$ |
9,322 |
|
Former bank premises |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,782 |
|
|
|
— |
|
Foreclosed property |
|
|
780 |
|
|
|
908 |
|
|
|
766 |
|
|
|
738 |
|
|
|
564 |
|
Total nonperforming assets |
|
$ |
7,767 |
|
|
$ |
7,751 |
|
|
$ |
7,876 |
|
|
$ |
9,347 |
|
|
$ |
9,886 |
|
Loans past due 90 days and still accruing interest |
|
$ |
323 |
|
|
$ |
735 |
|
|
$ |
970 |
|
|
$ |
360 |
|
|
$ |
206 |
|
Allowance for credit losses on loans |
|
$ |
125,835 |
|
|
$ |
126,461 |
|
|
$ |
125,159 |
|
|
$ |
123,513 |
|
|
$ |
120,002 |
|
Mortgage Banking: |
|
|
|
|
|
|
|
|
|
|
Loans originated, mortgage |
|
$ |
289,191 |
|
|
$ |
302,616 |
|
|
$ |
348,387 |
|
|
$ |
409,050 |
|
|
$ |
280,401 |
|
Loans originated, joint venture |
|
|
135,197 |
|
|
|
126,332 |
|
|
|
172,021 |
|
|
|
207,450 |
|
|
|
135,818 |
|
Total loans originated |
|
$ |
424,388 |
|
|
$ |
428,948 |
|
|
$ |
520,408 |
|
|
$ |
616,500 |
|
|
$ |
416,219 |
|
Number of loans originated |
|
|
1,247 |
|
|
|
1,237 |
|
|
|
1,487 |
|
|
|
1,715 |
|
|
|
1,249 |
|
Number of originators |
|
|
176 |
|
|
|
181 |
|
|
|
192 |
|
|
|
196 |
|
|
|
194 |
|
Purchase % |
|
|
95.66 |
% |
|
|
95.06 |
% |
|
|
95.96 |
% |
|
|
96.32 |
% |
|
|
94.99 |
% |
Loans sold |
|
$ |
410,895 |
|
|
$ |
468,014 |
|
|
$ |
567,291 |
|
|
$ |
525,078 |
|
|
$ |
346,288 |
|
Rate lock asset |
|
$ |
1,681 |
|
|
$ |
895 |
|
|
$ |
1,348 |
|
|
$ |
1,551 |
|
|
$ |
1,435 |
|
Gross realized gain on sales and fees as a % of loans
originated |
|
|
3.34 |
% |
|
|
3.06 |
% |
|
|
3.17 |
% |
|
|
2.96 |
% |
|
|
3.11 |
% |
Other Ratios: |
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
|
2.72 |
% |
|
|
2.83 |
% |
|
|
2.95 |
% |
|
|
2.98 |
% |
|
|
3.36 |
% |
Net interest margin-fully tax equivalent (non-GAAP) |
|
|
2.75 |
% |
|
|
2.86 |
% |
|
|
2.98 |
% |
|
|
3.01 |
% |
|
|
3.39 |
% |
Average earning assets/total average assets |
|
|
90.52 |
% |
|
|
90.48 |
% |
|
|
90.73 |
% |
|
|
90.96 |
% |
|
|
90.98 |
% |
Average loans/average deposits |
|
|
81.48 |
% |
|
|
80.72 |
% |
|
|
80.75 |
% |
|
|
83.72 |
% |
|
|
82.40 |
% |
Average noninterest deposits/total average deposits |
|
|
30.25 |
% |
|
|
31.69 |
% |
|
|
33.50 |
% |
|
|
36.07 |
% |
|
|
38.35 |
% |
Period end equity/period end total assets |
|
|
12.24 |
% |
|
|
12.21 |
% |
|
|
11.90 |
% |
|
|
11.56 |
% |
|
|
11.89 |
% |
Efficiency ratio (non-GAAP) |
|
|
73.25 |
% |
|
|
76.17 |
% |
|
|
66.21 |
% |
|
|
70.41 |
% |
|
|
65.64 |
% |
(1) Current reporting period regulatory capital ratios are
preliminary. |
TOWNEBANK |
Selected Data (unaudited) |
(dollars in thousands) |
|
Investment Securities |
|
|
|
|
|
|
|
% Change |
|
|
Q1 |
|
Q1 |
|
Q4 |
|
Q1 24 vs. |
|
Q1 24 vs. |
Available-for-sale securities, at fair value |
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
Q1 23 |
|
Q4 23 |
U.S. agency securities |
|
$ |
294,723 |
|
|
$ |
334,211 |
|
|
$ |
306,386 |
|
|
(11.82 |
)% |
|
(3.81 |
)% |
U.S. Treasury notes |
|
|
27,534 |
|
|
|
27,272 |
|
|
|
27,684 |
|
|
0.96 |
% |
|
(0.54 |
)% |
Municipal securities |
|
|
447,323 |
|
|
|
508,439 |
|
|
|
510,134 |
|
|
(12.02 |
)% |
|
(12.31 |
)% |
Trust preferred and other corporate securities |
|
|
87,983 |
|
|
|
76,965 |
|
|
|
86,011 |
|
|
14.32 |
% |
|
2.29 |
% |
Mortgage-backed securities issued by GSEs and GNMA |
|
|
1,347,920 |
|
|
|
1,132,746 |
|
|
|
1,200,625 |
|
|
19.00 |
% |
|
12.27 |
% |
Allowance for credit losses |
|
|
(1,382 |
) |
|
|
(1,150 |
) |
|
|
(1,498 |
) |
|
20.17 |
% |
|
(7.74 |
)% |
Total |
|
$ |
2,204,101 |
|
|
$ |
2,078,483 |
|
|
$ |
2,129,342 |
|
|
6.04 |
% |
|
3.51 |
% |
Gross unrealized gains (losses) reflected in financial
statements |
|
|
|
|
|
|
Total gross unrealized gains |
|
$ |
1,868 |
|
|
$ |
2,218 |
|
|
$ |
3,740 |
|
|
(15.78 |
)% |
|
(50.05 |
)% |
Total gross unrealized losses |
|
|
(172,708 |
) |
|
|
(167,929 |
) |
|
|
(165,863 |
) |
|
2.85 |
% |
|
4.13 |
% |
Net unrealized gains (losses) and other adjustments on AFS
securities |
|
$ |
(170,840 |
) |
|
$ |
(165,711 |
) |
|
$ |
(162,123 |
) |
|
3.10 |
% |
|
5.38 |
% |
Held-to-maturity securities, at amortized
cost |
|
|
|
|
|
|
|
|
|
|
U.S. agency securities |
|
$ |
102,042 |
|
|
$ |
101,281 |
|
|
$ |
101,850 |
|
|
0.75 |
% |
|
0.19 |
% |
U.S. Treasury notes |
|
|
197,356 |
|
|
|
433,584 |
|
|
|
362,593 |
|
|
(54.48 |
)% |
|
(45.57 |
)% |
Municipal securities |
|
|
5,294 |
|
|
|
5,203 |
|
|
|
5,272 |
|
|
1.75 |
% |
|
0.42 |
% |
Trust preferred corporate securities |
|
|
2,159 |
|
|
|
2,210 |
|
|
|
2,172 |
|
|
(2.31 |
)% |
|
(0.60 |
)% |
Mortgage-backed securities issued by GSE |
|
|
5,659 |
|
|
|
5,948 |
|
|
|
5,705 |
|
|
(4.86 |
)% |
|
(0.81 |
)% |
Allowance for credit losses |
|
|
(82 |
) |
|
|
(88 |
) |
|
|
(84 |
) |
|
(6.82 |
)% |
|
(2.38 |
)% |
Total |
|
$ |
312,428 |
|
|
$ |
548,138 |
|
|
$ |
477,508 |
|
|
(43.00 |
)% |
|
(34.57 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Total gross unrealized gains |
|
$ |
265 |
|
|
$ |
392 |
|
|
$ |
380 |
|
|
(32.40 |
)% |
|
(30.26 |
)% |
Total gross unrealized losses |
|
|
(14,262 |
) |
|
|
(24,018 |
) |
|
|
(15,316 |
) |
|
(40.62 |
)% |
|
(6.88 |
)% |
Net unrealized gains (losses) in HTM securities |
|
$ |
(13,997 |
) |
|
$ |
(23,626 |
) |
|
$ |
(14,936 |
) |
|
(40.76 |
)% |
|
(6.29 |
)% |
Total unrealized gains (losses) on AFS and HTM securities |
|
$ |
(184,837 |
) |
|
$ |
(189,337 |
) |
|
$ |
(177,059 |
) |
|
(2.38 |
)% |
|
4.39 |
% |
|
|
|
|
|
|
|
|
% Change |
Loans Held For Investment |
|
Q1 |
|
Q1 |
|
Q4 |
|
Q1 24 vs. |
|
Q1 24 vs. |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
Q1 23 |
|
Q4 23 |
Real estate – construction and development |
|
$ |
1,255,741 |
|
|
$ |
1,473,034 |
|
|
$ |
1,249,735 |
|
|
(14.75 |
)% |
|
0.48 |
% |
Commercial real estate – owner occupied |
|
|
1,700,753 |
|
|
|
1,675,119 |
|
|
|
1,699,386 |
|
|
1.53 |
% |
|
0.08 |
% |
Commercial real estate – non owner occupied |
|
|
3,178,947 |
|
|
|
2,908,791 |
|
|
|
3,117,071 |
|
|
9.29 |
% |
|
1.99 |
% |
Real estate – multifamily |
|
|
595,075 |
|
|
|
505,237 |
|
|
|
583,209 |
|
|
17.78 |
% |
|
2.03 |
% |
Residential 1-4 family |
|
|
1,882,296 |
|
|
|
1,734,698 |
|
|
|
1,852,891 |
|
|
8.51 |
% |
|
1.59 |
% |
HELOC |
|
|
386,361 |
|
|
|
387,967 |
|
|
|
382,979 |
|
|
(0.41 |
)% |
|
0.88 |
% |
Commercial and industrial
business (C&I) |
|
|
1,288,550 |
|
|
|
1,297,707 |
|
|
|
1,265,169 |
|
|
(0.71 |
)% |
|
1.85 |
% |
Government |
|
|
528,341 |
|
|
|
510,494 |
|
|
|
525,261 |
|
|
3.50 |
% |
|
0.59 |
% |
Indirect |
|
|
555,482 |
|
|
|
582,306 |
|
|
|
558,789 |
|
|
(4.61 |
)% |
|
(0.59 |
)% |
Consumer loans and other |
|
|
80,797 |
|
|
|
98,432 |
|
|
|
94,531 |
|
|
(17.92 |
)% |
|
(14.53 |
)% |
Total |
|
$ |
11,452,343 |
|
|
$ |
11,173,785 |
|
|
$ |
11,329,021 |
|
|
2.49 |
% |
|
1.09 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change |
Deposits |
|
Q1 |
|
Q1 |
|
Q4 |
|
Q1 24 vs. |
|
Q1 24 vs. |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
Q1 23 |
|
Q4 23 |
Noninterest-bearing demand |
|
$ |
4,194,132 |
|
|
$ |
5,069,363 |
|
|
$ |
4,342,701 |
|
|
(17.27 |
)% |
|
(3.42 |
)% |
Interest-bearing: |
|
|
|
|
|
|
|
|
|
|
Demand and money market accounts |
|
|
6,916,701 |
|
|
|
6,284,184 |
|
|
|
6,757,619 |
|
|
10.07 |
% |
|
2.35 |
% |
Savings |
|
|
326,179 |
|
|
|
389,173 |
|
|
|
336,492 |
|
|
(16.19 |
)% |
|
(3.06 |
)% |
Certificates of deposits |
|
|
2,689,062 |
|
|
|
1,855,411 |
|
|
|
2,456,394 |
|
|
44.93 |
% |
|
9.47 |
% |
Total |
|
|
14,126,074 |
|
|
|
13,598,131 |
|
|
|
13,893,206 |
|
|
3.88 |
% |
|
1.68 |
% |
TOWNEBANK |
Average Balances, Yields and Rate Paid
(unaudited) |
(dollars in thousands) |
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
|
|
March 31, 2024 |
|
December 31, 2023 |
|
March 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) |
|
$ |
11,379,323 |
|
|
$ |
151,811 |
|
|
5.37 |
% |
|
$ |
11,229,965 |
|
|
$ |
147,647 |
|
|
5.22 |
% |
|
$ |
11,097,626 |
|
|
$ |
133,536 |
|
|
4.88 |
% |
Taxable investment securities |
|
|
2,440,652 |
|
|
|
18,716 |
|
|
3.07 |
% |
|
|
2,365,928 |
|
|
|
18,820 |
|
|
3.18 |
% |
|
|
2,438,489 |
|
|
|
16,816 |
|
|
2.76 |
% |
Tax-exempt investment securities |
|
|
161,538 |
|
|
|
1,549 |
|
|
3.84 |
% |
|
|
195,603 |
|
|
|
1,989 |
|
|
4.07 |
% |
|
|
188,033 |
|
|
|
1,887 |
|
|
4.01 |
% |
Total securities |
|
|
2,602,190 |
|
|
|
20,265 |
|
|
3.12 |
% |
|
|
2,561,531 |
|
|
|
20,809 |
|
|
3.25 |
% |
|
|
2,626,522 |
|
|
|
18,703 |
|
|
2.85 |
% |
Interest-bearing deposits |
|
|
1,167,322 |
|
|
|
14,234 |
|
|
4.90 |
% |
|
|
1,141,086 |
|
|
|
13,967 |
|
|
4.86 |
% |
|
|
1,044,538 |
|
|
|
10,649 |
|
|
4.13 |
% |
Mortgage loans held for sale |
|
|
116,868 |
|
|
|
1,716 |
|
|
5.87 |
% |
|
|
162,543 |
|
|
|
2,886 |
|
|
7.10 |
% |
|
|
105,018 |
|
|
|
1,604 |
|
|
6.11 |
% |
Total earning assets |
|
|
15,265,703 |
|
|
|
188,026 |
|
|
4.95 |
% |
|
|
15,095,125 |
|
|
|
185,309 |
|
|
4.87 |
% |
|
|
14,873,704 |
|
|
|
164,492 |
|
|
4.49 |
% |
Less: allowance for loan losses |
|
|
(127,413 |
) |
|
|
|
|
|
|
(126,205 |
) |
|
|
|
|
|
|
(114,447 |
) |
|
|
|
|
Total nonearning assets |
|
|
1,725,945 |
|
|
|
|
|
|
|
1,714,122 |
|
|
|
|
|
|
|
1,589,783 |
|
|
|
|
|
Total assets |
|
$ |
16,864,235 |
|
|
|
|
|
|
$ |
16,683,042 |
|
|
|
|
|
|
$ |
16,349,040 |
|
|
|
|
|
Liabilities and Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand and money market |
|
$ |
6,828,053 |
|
|
$ |
47,985 |
|
|
2.83 |
% |
|
$ |
6,786,850 |
|
|
$ |
46,833 |
|
|
2.74 |
% |
|
$ |
6,217,754 |
|
|
$ |
23,302 |
|
|
1.52 |
% |
Savings |
|
|
329,036 |
|
|
|
881 |
|
|
1.08 |
% |
|
|
345,172 |
|
|
|
962 |
|
|
1.11 |
% |
|
|
401,776 |
|
|
|
844 |
|
|
0.85 |
% |
Certificates of deposit |
|
|
2,583,938 |
|
|
|
29,522 |
|
|
4.60 |
% |
|
|
2,370,723 |
|
|
|
25,405 |
|
|
4.25 |
% |
|
|
1,683,354 |
|
|
|
9,788 |
|
|
2.36 |
% |
Total interest-bearing deposits |
|
|
9,741,027 |
|
|
|
78,388 |
|
|
3.24 |
% |
|
|
9,502,745 |
|
|
|
73,200 |
|
|
3.06 |
% |
|
|
8,302,884 |
|
|
|
33,934 |
|
|
1.66 |
% |
Borrowings |
|
|
212,375 |
|
|
|
3,078 |
|
|
5.73 |
% |
|
|
114,151 |
|
|
|
958 |
|
|
3.28 |
% |
|
|
355,833 |
|
|
|
3,915 |
|
|
4.40 |
% |
Subordinated debt, net |
|
|
255,878 |
|
|
|
2,236 |
|
|
3.50 |
% |
|
|
255,663 |
|
|
|
2,236 |
|
|
3.50 |
% |
|
|
250,066 |
|
|
|
2,169 |
|
|
3.47 |
% |
Total interest-bearing liabilities |
|
|
10,209,280 |
|
|
|
83,702 |
|
|
3.30 |
% |
|
|
9,872,559 |
|
|
|
76,394 |
|
|
3.07 |
% |
|
|
8,908,783 |
|
|
|
40,018 |
|
|
1.82 |
% |
Demand deposits |
|
|
4,224,104 |
|
|
|
|
|
|
|
4,408,712 |
|
|
|
|
|
|
|
5,164,415 |
|
|
|
|
|
Other noninterest-bearing liabilities |
|
|
390,576 |
|
|
|
|
|
|
|
413,469 |
|
|
|
|
|
|
|
329,840 |
|
|
|
|
|
Total liabilities |
|
|
14,823,960 |
|
|
|
|
|
|
|
14,694,740 |
|
|
|
|
|
|
|
14,403,038 |
|
|
|
|
|
Shareholders’ equity |
|
|
2,040,275 |
|
|
|
|
|
|
|
1,988,302 |
|
|
|
|
|
|
|
1,946,002 |
|
|
|
|
|
Total liabilities and equity |
|
$ |
16,864,235 |
|
|
|
|
|
|
$ |
16,683,042 |
|
|
|
|
|
|
$ |
16,349,040 |
|
|
|
|
|
Net interest income
(tax-equivalent basis) (4) |
|
|
|
$ |
104,324 |
|
|
|
|
|
|
$ |
108,915 |
|
|
|
|
|
|
$ |
124,474 |
|
|
|
Reconciliation of Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent basis adjustment |
|
|
|
|
(1,106 |
) |
|
|
|
|
|
|
(1,182 |
) |
|
|
|
|
|
|
(1,096 |
) |
|
|
Net interest income (GAAP) |
|
|
|
$ |
103,218 |
|
|
|
|
|
|
$ |
107,733 |
|
|
|
|
|
|
$ |
123,378 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread (2)(4) |
|
|
|
|
|
1.65 |
% |
|
|
|
|
|
1.80 |
% |
|
|
|
|
|
2.67 |
% |
Interest expense
as a percent of average earning assets |
|
|
|
2.21 |
% |
|
|
|
|
|
2.01 |
% |
|
|
|
|
|
1.09 |
% |
Net interest margin (tax equivalent basis) (3)(4) |
|
|
|
2.75 |
% |
|
|
|
|
|
2.86 |
% |
|
|
|
|
|
3.39 |
% |
Total cost of deposits |
|
|
|
|
|
2.26 |
% |
|
|
|
|
|
2.09 |
% |
|
|
|
|
|
1.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Yields and interest income are presented on a
taxable-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 |
Consolidated Balance Sheets |
(dollars in thousands, except share data) |
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(unaudited) |
|
(audited) |
ASSETS |
|
|
|
|
Cash and due from banks |
|
$ |
75,802 |
|
|
$ |
85,584 |
|
Interest-bearing deposits at FRB – Richmond |
|
|
926,635 |
|
|
|
939,356 |
|
Federal funds sold and interest-bearing deposits in financial
institutions |
|
|
98,673 |
|
|
|
103,417 |
|
Total Cash and Cash Equivalents |
|
|
1,101,110 |
|
|
|
1,128,357 |
|
Securities available for sale, at fair value (amortized cost of
$2,376,323 and $2,292,963, and allowance for credit losses of
$1,382 and $1,498 at March 31, 2024 and December 31,
2023, respectively) |
|
|
2,204,101 |
|
|
|
2,129,342 |
|
Securities held to maturity, at amortized cost (fair value $298,513
and $462,656 at March 31, 2024 and December 31, 2023,
respectively) |
|
|
312,510 |
|
|
|
477,592 |
|
Less: allowance for credit losses |
|
|
(82 |
) |
|
|
(84 |
) |
Securities held to maturity, net of allowance for credit
losses |
|
|
312,428 |
|
|
|
477,508 |
|
Other equity securities |
|
|
13,661 |
|
|
|
13,792 |
|
FHLB stock |
|
|
12,139 |
|
|
|
21,372 |
|
Total Securities |
|
|
2,542,329 |
|
|
|
2,642,014 |
|
Mortgage loans held for sale |
|
|
150,727 |
|
|
|
149,987 |
|
Loans, net of unearned income and deferred costs |
|
|
11,452,343 |
|
|
|
11,329,021 |
|
Less: allowance for credit losses |
|
|
(125,835 |
) |
|
|
(126,461 |
) |
Net Loans |
|
|
11,326,508 |
|
|
|
11,202,560 |
|
Premises and equipment, net |
|
|
342,569 |
|
|
|
337,598 |
|
Goodwill |
|
|
457,619 |
|
|
|
456,335 |
|
Other intangible assets, net |
|
|
68,758 |
|
|
|
64,634 |
|
BOLI |
|
|
279,293 |
|
|
|
277,445 |
|
Other assets |
|
|
615,324 |
|
|
|
576,109 |
|
TOTAL ASSETS |
|
$ |
16,884,237 |
|
|
$ |
16,835,039 |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
Deposits: |
|
|
|
|
Noninterest-bearing demand |
|
$ |
4,194,132 |
|
|
$ |
4,342,701 |
|
Interest-bearing: |
|
|
|
|
Demand and money market accounts |
|
|
6,916,701 |
|
|
|
6,757,619 |
|
Savings |
|
|
326,179 |
|
|
|
336,492 |
|
Certificates of deposit |
|
|
2,689,062 |
|
|
|
2,456,394 |
|
Total Deposits |
|
|
14,126,074 |
|
|
|
13,893,206 |
|
Advances from the FHLB |
|
|
3,775 |
|
|
|
203,958 |
|
Subordinated debt, net |
|
|
256,011 |
|
|
|
255,796 |
|
Repurchase agreements and other borrowings |
|
|
31,198 |
|
|
|
32,826 |
|
Total Borrowings |
|
|
290,984 |
|
|
|
492,580 |
|
Other liabilities |
|
|
401,307 |
|
|
|
393,375 |
|
TOTAL
LIABILITIES |
|
|
14,818,365 |
|
|
|
14,779,161 |
|
Preferred stock, authorized and unissued shares –
2,000,000 |
|
|
— |
|
|
|
— |
|
Common stock, $1.667 par
value: 150,000,000 shares authorized 74,990,437 and 74,893,462
shares issued at March 31, 2024 and December 31, 2023,
respectively |
|
|
125,009 |
|
|
|
124,847 |
|
Capital surplus |
|
|
1,114,038 |
|
|
|
1,112,761 |
|
Retained earnings |
|
|
937,065 |
|
|
|
921,126 |
|
Common stock issued to
deferred compensation trust, at cost 1,008,276 and 1,004,717 shares
at March 31, 2024 and December 31, 2023,
respectively |
|
|
(20,915 |
) |
|
|
(20,813 |
) |
Deferred compensation trust |
|
|
20,915 |
|
|
|
20,813 |
|
Accumulated other comprehensive income (loss) |
|
|
(126,586 |
) |
|
|
(118,762 |
) |
TOTAL SHAREHOLDERS’ EQUITY |
|
|
2,049,526 |
|
|
|
2,039,972 |
|
Noncontrolling interest |
|
|
16,346 |
|
|
|
15,906 |
|
TOTAL EQUITY |
|
|
2,065,872 |
|
|
|
2,055,878 |
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
16,884,237 |
|
|
$ |
16,835,039 |
|
TOWNEBANK |
Consolidated Statements of Income (unaudited) |
(dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
|
2024 |
|
|
|
2023 |
|
INTEREST INCOME: |
|
|
|
|
Loans, including fees |
|
$ |
150,974 |
|
|
$ |
132,768 |
|
Investment securities |
|
|
19,996 |
|
|
|
18,375 |
|
Interest-bearing deposits in financial institutions and federal
funds sold |
|
|
14,234 |
|
|
|
10,649 |
|
Mortgage loans held for sale |
|
|
1,716 |
|
|
|
1,604 |
|
Total interest income |
|
|
186,920 |
|
|
|
163,396 |
|
INTEREST EXPENSE: |
|
|
|
|
Deposits |
|
|
78,388 |
|
|
|
33,934 |
|
Advances from the FHLB |
|
|
2,438 |
|
|
|
2,992 |
|
Subordinated debt, net |
|
|
2,236 |
|
|
|
2,169 |
|
Repurchase agreements and other borrowings |
|
|
640 |
|
|
|
923 |
|
Total interest expense |
|
|
83,702 |
|
|
|
40,018 |
|
Net interest income |
|
|
103,218 |
|
|
|
123,378 |
|
PROVISION FOR CREDIT LOSSES |
|
|
(877 |
) |
|
|
11,670 |
|
Net interest income after provision for credit
losses |
|
|
104,095 |
|
|
|
111,708 |
|
NONINTEREST INCOME: |
|
|
|
|
Residential mortgage banking income, net |
|
|
10,477 |
|
|
|
9,372 |
|
Insurance commissions and other income, net |
|
|
25,539 |
|
|
|
22,823 |
|
Property management income, net |
|
|
16,773 |
|
|
|
15,535 |
|
Real estate brokerage income, net |
|
|
— |
|
|
|
1,791 |
|
Service charges on deposit accounts |
|
|
3,061 |
|
|
|
2,851 |
|
Credit card merchant fees, net |
|
|
1,551 |
|
|
|
1,545 |
|
BOLI |
|
|
1,842 |
|
|
|
1,672 |
|
Other income |
|
|
4,567 |
|
|
|
5,177 |
|
Net gain/(loss) on investment securities |
|
|
74 |
|
|
|
— |
|
Total noninterest income |
|
|
63,884 |
|
|
|
60,766 |
|
NONINTEREST EXPENSE: |
|
|
|
|
Salaries and employee benefits |
|
|
71,377 |
|
|
|
69,420 |
|
Occupancy |
|
|
9,422 |
|
|
|
9,064 |
|
Furniture and equipment |
|
|
4,478 |
|
|
|
4,244 |
|
Amortization – intangibles |
|
|
3,246 |
|
|
|
3,524 |
|
Software |
|
|
6,100 |
|
|
|
5,624 |
|
Data processing |
|
|
3,916 |
|
|
|
3,353 |
|
Professional fees |
|
|
3,180 |
|
|
|
3,011 |
|
Advertising and marketing |
|
|
4,582 |
|
|
|
4,401 |
|
Other expenses |
|
|
19,290 |
|
|
|
21,756 |
|
Total noninterest expense |
|
|
125,591 |
|
|
|
124,397 |
|
Income before income tax expense and noncontrolling
interest |
|
|
42,388 |
|
|
|
48,077 |
|
Provision for income tax expense |
|
|
7,261 |
|
|
|
9,599 |
|
Net income |
|
$ |
35,127 |
|
|
$ |
38,478 |
|
Net income attributable to noncontrolling interest |
|
|
(440 |
) |
|
|
(145 |
) |
Net income attributable to TowneBank |
|
$ |
34,687 |
|
|
$ |
38,333 |
|
Per common share information |
|
|
|
|
Basic earnings |
|
$ |
0.46 |
|
|
$ |
0.52 |
|
Diluted earnings |
|
$ |
0.46 |
|
|
$ |
0.52 |
|
Cash dividends declared |
|
$ |
0.25 |
|
|
$ |
0.23 |
|
TOWNEBANK |
Consolidated Balance Sheets – Five Quarter
Trend |
(dollars in thousands, except share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
(unaudited) |
|
(audited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
ASSETS |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
75,802 |
|
|
$ |
85,584 |
|
|
$ |
83,949 |
|
|
$ |
106,994 |
|
|
$ |
97,502 |
|
Interest-bearing deposits at FRB – Richmond |
|
|
926,635 |
|
|
|
939,356 |
|
|
|
1,029,276 |
|
|
|
1,427,044 |
|
|
|
1,040,112 |
|
Federal funds sold and interest-bearing deposits in financial
institutions |
|
|
98,673 |
|
|
|
103,417 |
|
|
|
102,527 |
|
|
|
102,231 |
|
|
|
104,924 |
|
Total Cash and Cash Equivalents |
|
|
1,101,110 |
|
|
|
1,128,357 |
|
|
|
1,215,752 |
|
|
|
1,636,269 |
|
|
|
1,242,538 |
|
Securities available for sale |
|
|
2,204,101 |
|
|
|
2,129,342 |
|
|
|
1,963,453 |
|
|
|
2,005,851 |
|
|
|
2,078,483 |
|
Securities held to maturity |
|
|
312,510 |
|
|
|
477,592 |
|
|
|
547,854 |
|
|
|
548,017 |
|
|
|
548,226 |
|
Less: allowance for credit losses |
|
|
(82 |
) |
|
|
(84 |
) |
|
|
(85 |
) |
|
|
(87 |
) |
|
|
(88 |
) |
Securities held to maturity, net of allowance for credit
losses |
|
|
312,428 |
|
|
|
477,508 |
|
|
|
547,769 |
|
|
|
547,930 |
|
|
|
548,138 |
|
Other equity securities |
|
|
13,661 |
|
|
|
13,792 |
|
|
|
14,062 |
|
|
|
13,798 |
|
|
|
13,341 |
|
FHLB stock |
|
|
12,139 |
|
|
|
21,372 |
|
|
|
16,634 |
|
|
|
40,454 |
|
|
|
29,837 |
|
Total Securities |
|
|
2,542,329 |
|
|
|
2,642,014 |
|
|
|
2,541,918 |
|
|
|
2,608,033 |
|
|
|
2,669,799 |
|
Mortgage loans held for sale |
|
|
150,727 |
|
|
|
149,987 |
|
|
|
188,048 |
|
|
|
229,502 |
|
|
|
157,161 |
|
Loans, net of unearned income and deferred costs |
|
|
11,452,343 |
|
|
|
11,329,021 |
|
|
|
11,172,971 |
|
|
|
11,208,014 |
|
|
|
11,173,785 |
|
Less: allowance for credit losses |
|
|
(125,835 |
) |
|
|
(126,461 |
) |
|
|
(125,159 |
) |
|
|
(123,513 |
) |
|
|
(120,002 |
) |
Net Loans |
|
|
11,326,508 |
|
|
|
11,202,560 |
|
|
|
11,047,812 |
|
|
|
11,084,501 |
|
|
|
11,053,783 |
|
Premises and equipment, net |
|
|
342,569 |
|
|
|
337,598 |
|
|
|
335,522 |
|
|
|
326,686 |
|
|
|
321,944 |
|
Goodwill |
|
|
457,619 |
|
|
|
456,335 |
|
|
|
456,684 |
|
|
|
456,695 |
|
|
|
477,234 |
|
Other intangible assets, net |
|
|
68,758 |
|
|
|
64,634 |
|
|
|
67,496 |
|
|
|
71,106 |
|
|
|
73,238 |
|
BOLI |
|
|
279,293 |
|
|
|
277,445 |
|
|
|
275,240 |
|
|
|
273,435 |
|
|
|
271,704 |
|
Other assets |
|
|
615,324 |
|
|
|
576,109 |
|
|
|
551,884 |
|
|
|
538,848 |
|
|
|
463,076 |
|
TOTAL ASSETS |
|
$ |
16,884,237 |
|
|
$ |
16,835,039 |
|
|
$ |
16,680,356 |
|
|
$ |
17,225,075 |
|
|
$ |
16,730,477 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
|
$ |
4,194,132 |
|
|
$ |
4,342,701 |
|
|
$ |
4,444,861 |
|
|
$ |
4,774,830 |
|
|
$ |
5,069,363 |
|
Interest-bearing: |
|
|
|
|
|
|
|
|
|
|
Demand and money market accounts |
|
|
6,916,701 |
|
|
|
6,757,619 |
|
|
|
6,764,415 |
|
|
|
6,529,336 |
|
|
|
6,284,184 |
|
Savings |
|
|
326,179 |
|
|
|
336,492 |
|
|
|
350,031 |
|
|
|
361,891 |
|
|
|
389,173 |
|
Certificates of deposit |
|
|
2,689,062 |
|
|
|
2,456,394 |
|
|
|
2,321,498 |
|
|
|
2,100,604 |
|
|
|
1,855,411 |
|
Total Deposits |
|
|
14,126,074 |
|
|
|
13,893,206 |
|
|
|
13,880,805 |
|
|
|
13,766,661 |
|
|
|
13,598,131 |
|
Advances from the FHLB |
|
|
3,775 |
|
|
|
203,958 |
|
|
|
104,139 |
|
|
|
754,319 |
|
|
|
504,497 |
|
Subordinated debt, net |
|
|
256,011 |
|
|
|
255,796 |
|
|
|
255,580 |
|
|
|
255,365 |
|
|
|
255,151 |
|
Repurchase agreements and other borrowings |
|
|
31,198 |
|
|
|
32,826 |
|
|
|
47,315 |
|
|
|
49,898 |
|
|
|
46,602 |
|
Total Borrowings |
|
|
290,984 |
|
|
|
492,580 |
|
|
|
407,034 |
|
|
|
1,059,582 |
|
|
|
806,250 |
|
Other liabilities |
|
|
401,307 |
|
|
|
393,375 |
|
|
|
408,305 |
|
|
|
408,333 |
|
|
|
336,201 |
|
TOTAL LIABILITIES |
|
|
14,818,365 |
|
|
|
14,779,161 |
|
|
|
14,696,144 |
|
|
|
15,234,576 |
|
|
|
14,740,582 |
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Common stock, $1.667 par value |
|
|
125,009 |
|
|
|
124,847 |
|
|
|
124,837 |
|
|
|
124,805 |
|
|
|
124,682 |
|
Capital surplus |
|
|
1,114,038 |
|
|
|
1,112,761 |
|
|
|
1,111,152 |
|
|
|
1,109,526 |
|
|
|
1,109,387 |
|
Retained earnings |
|
|
937,065 |
|
|
|
921,126 |
|
|
|
911,042 |
|
|
|
884,901 |
|
|
|
861,905 |
|
Common stock issued to
deferred compensation trust, at cost |
|
|
(20,915 |
) |
|
|
(20,813 |
) |
|
|
(20,740 |
) |
|
|
(20,134 |
) |
|
|
(18,839 |
) |
Deferred compensation trust |
|
|
20,915 |
|
|
|
20,813 |
|
|
|
20,740 |
|
|
|
20,134 |
|
|
|
18,839 |
|
Accumulated other comprehensive income (loss) |
|
|
(126,586 |
) |
|
|
(118,762 |
) |
|
|
(179,043 |
) |
|
|
(145,392 |
) |
|
|
(121,297 |
) |
TOTAL SHAREHOLDERS’ EQUITY |
|
|
2,049,526 |
|
|
|
2,039,972 |
|
|
|
1,967,988 |
|
|
|
1,973,840 |
|
|
|
1,974,677 |
|
Noncontrolling interest |
|
|
16,346 |
|
|
|
15,906 |
|
|
|
16,224 |
|
|
|
16,659 |
|
|
|
15,218 |
|
TOTAL EQUITY |
|
|
2,065,872 |
|
|
|
2,055,878 |
|
|
|
1,984,212 |
|
|
|
1,990,499 |
|
|
|
1,989,895 |
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
16,884,237 |
|
|
$ |
16,835,039 |
|
|
$ |
16,680,356 |
|
|
$ |
17,225,075 |
|
|
$ |
16,730,477 |
|
TOWNEBANK |
Consolidated Statements of Income – Five Quarter Trend
(unaudited) |
(dollars in thousands, except share data) |
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
150,974 |
|
|
$ |
146,810 |
|
|
$ |
143,605 |
|
|
$ |
138,977 |
|
|
$ |
132,768 |
|
Investment securities |
|
|
19,996 |
|
|
|
20,464 |
|
|
|
20,292 |
|
|
|
18,851 |
|
|
|
18,375 |
|
Interest-bearing deposits in financial institutions and federal
funds sold |
|
|
14,234 |
|
|
|
13,967 |
|
|
|
15,031 |
|
|
|
14,488 |
|
|
|
10,649 |
|
Mortgage loans held for sale |
|
|
1,716 |
|
|
|
2,886 |
|
|
|
3,928 |
|
|
|
2,547 |
|
|
|
1,604 |
|
Total interest income |
|
|
186,920 |
|
|
|
184,127 |
|
|
|
182,856 |
|
|
|
174,863 |
|
|
|
163,396 |
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
78,388 |
|
|
|
73,200 |
|
|
|
64,171 |
|
|
|
48,671 |
|
|
|
33,934 |
|
Advances from the FHLB |
|
|
2,438 |
|
|
|
917 |
|
|
|
3,438 |
|
|
|
10,407 |
|
|
|
2,992 |
|
Subordinated debt, net |
|
|
2,236 |
|
|
|
2,236 |
|
|
|
2,245 |
|
|
|
2,236 |
|
|
|
2,169 |
|
Repurchase agreements and other borrowings |
|
|
640 |
|
|
|
41 |
|
|
|
(56 |
) |
|
|
(62 |
) |
|
|
923 |
|
Total interest expense |
|
|
83,702 |
|
|
|
76,394 |
|
|
|
69,798 |
|
|
|
61,252 |
|
|
|
40,018 |
|
Net interest income |
|
|
103,218 |
|
|
|
107,733 |
|
|
|
113,058 |
|
|
|
113,611 |
|
|
|
123,378 |
|
PROVISION FOR CREDIT LOSSES |
|
|
(877 |
) |
|
|
2,446 |
|
|
|
1,007 |
|
|
|
3,556 |
|
|
|
11,670 |
|
Net interest income after provision for credit
losses |
|
|
104,095 |
|
|
|
105,287 |
|
|
|
112,051 |
|
|
|
110,055 |
|
|
|
111,708 |
|
NONINTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
Residential mortgage banking income, net |
|
|
10,477 |
|
|
|
8,035 |
|
|
|
10,648 |
|
|
|
11,360 |
|
|
|
9,372 |
|
Insurance commissions and other income, net |
|
|
25,539 |
|
|
|
21,207 |
|
|
|
23,777 |
|
|
|
22,498 |
|
|
|
22,823 |
|
Property management income, net |
|
|
16,773 |
|
|
|
7,358 |
|
|
|
12,800 |
|
|
|
12,098 |
|
|
|
15,535 |
|
Real estate brokerage income, net |
|
|
— |
|
|
|
(32 |
) |
|
|
(63 |
) |
|
|
1,834 |
|
|
|
1,791 |
|
Service charges on deposit accounts |
|
|
3,061 |
|
|
|
3,035 |
|
|
|
2,802 |
|
|
|
3,018 |
|
|
|
2,851 |
|
Credit card merchant fees, net |
|
|
1,551 |
|
|
|
1,476 |
|
|
|
2,006 |
|
|
|
1,682 |
|
|
|
1,545 |
|
BOLI |
|
|
1,842 |
|
|
|
2,206 |
|
|
|
1,814 |
|
|
|
1,710 |
|
|
|
1,672 |
|
Other income |
|
|
4,567 |
|
|
|
4,528 |
|
|
|
6,022 |
|
|
|
13,757 |
|
|
|
5,177 |
|
Net gain/(loss) on investment securities |
|
|
74 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total noninterest income |
|
|
63,884 |
|
|
|
47,813 |
|
|
|
59,806 |
|
|
|
67,957 |
|
|
|
60,766 |
|
NONINTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
71,377 |
|
|
|
66,035 |
|
|
|
67,258 |
|
|
|
67,445 |
|
|
|
69,420 |
|
Occupancy |
|
|
9,422 |
|
|
|
9,308 |
|
|
|
9,027 |
|
|
|
9,487 |
|
|
|
9,064 |
|
Furniture and equipment |
|
|
4,478 |
|
|
|
4,445 |
|
|
|
4,100 |
|
|
|
4,389 |
|
|
|
4,244 |
|
Amortization – intangibles |
|
|
3,246 |
|
|
|
3,411 |
|
|
|
3,610 |
|
|
|
3,610 |
|
|
|
3,524 |
|
Software expense |
|
|
6,100 |
|
|
|
6,743 |
|
|
|
6,130 |
|
|
|
6,169 |
|
|
|
5,624 |
|
Data processing |
|
|
3,916 |
|
|
|
3,529 |
|
|
|
4,140 |
|
|
|
4,011 |
|
|
|
3,353 |
|
Professional fees |
|
|
3,180 |
|
|
|
3,339 |
|
|
|
2,770 |
|
|
|
3,166 |
|
|
|
3,011 |
|
Advertising and marketing |
|
|
4,582 |
|
|
|
3,377 |
|
|
|
3,653 |
|
|
|
3,959 |
|
|
|
4,401 |
|
Other expenses |
|
|
19,290 |
|
|
|
21,708 |
|
|
|
17,014 |
|
|
|
22,992 |
|
|
|
21,756 |
|
Total noninterest expense |
|
|
125,591 |
|
|
|
121,895 |
|
|
|
117,702 |
|
|
|
125,228 |
|
|
|
124,397 |
|
Income before income tax expense and noncontrolling
interest |
|
|
42,388 |
|
|
|
31,205 |
|
|
|
54,155 |
|
|
|
52,784 |
|
|
|
48,077 |
|
Provision for income tax expense |
|
|
7,261 |
|
|
|
2,660 |
|
|
|
9,410 |
|
|
|
9,416 |
|
|
|
9,599 |
|
Net income |
|
|
35,127 |
|
|
|
28,545 |
|
|
|
44,745 |
|
|
|
43,368 |
|
|
|
38,478 |
|
Net income attributable to noncontrolling interest |
|
|
(440 |
) |
|
|
259 |
|
|
|
117 |
|
|
|
(1,652 |
) |
|
|
(145 |
) |
Net income attributable to TowneBank |
|
$ |
34,687 |
|
|
$ |
28,804 |
|
|
$ |
44,862 |
|
|
$ |
41,716 |
|
|
$ |
38,333 |
|
Per common share information |
|
|
|
|
|
|
|
|
|
|
Basic earnings |
|
$ |
0.46 |
|
|
$ |
0.39 |
|
|
$ |
0.60 |
|
|
$ |
0.56 |
|
|
$ |
0.52 |
|
Diluted earnings |
|
$ |
0.46 |
|
|
$ |
0.39 |
|
|
$ |
0.60 |
|
|
$ |
0.56 |
|
|
$ |
0.52 |
|
Basic weighted average shares outstanding |
|
|
74,816,420 |
|
|
|
74,773,335 |
|
|
|
74,750,294 |
|
|
|
74,691,121 |
|
|
|
74,363,222 |
|
Diluted weighted average shares outstanding |
|
|
74,979,501 |
|
|
|
74,793,557 |
|
|
|
74,765,515 |
|
|
|
74,699,810 |
|
|
|
74,390,614 |
|
Cash dividends declared |
|
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.23 |
|
TOWNEBANK |
Banking Segment Financial Information
(unaudited) |
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Increase/(Decrease) |
|
|
March 31, |
|
December 31, |
|
YTD 2024 over 2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
Amount |
|
Percent |
Revenue |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
102,682 |
|
|
$ |
123,650 |
|
|
$ |
106,906 |
|
|
$ |
(20,968 |
) |
|
(16.96 |
)% |
Service charges on deposit accounts |
|
|
3,061 |
|
|
|
2,851 |
|
|
|
3,035 |
|
|
|
210 |
|
|
7.37 |
% |
Credit card merchant fees |
|
|
1,551 |
|
|
|
1,545 |
|
|
|
1,476 |
|
|
|
6 |
|
|
0.39 |
% |
Other income |
|
|
5,790 |
|
|
|
5,740 |
|
|
|
6,544 |
|
|
|
50 |
|
|
0.87 |
% |
Subtotal |
|
|
10,402 |
|
|
|
10,136 |
|
|
|
11,055 |
|
|
|
266 |
|
|
2.62 |
% |
Net gain/(loss) on investment securities |
|
|
74 |
|
|
|
— |
|
|
|
— |
|
|
|
74 |
|
|
N/M |
Total noninterest income |
|
|
10,476 |
|
|
|
10,136 |
|
|
|
11,055 |
|
|
|
340 |
|
|
3.35 |
% |
Total revenue |
|
|
113,158 |
|
|
|
133,786 |
|
|
|
117,961 |
|
|
|
(20,628 |
) |
|
(15.42 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses |
|
|
(976 |
) |
|
|
11,754 |
|
|
|
2,831 |
|
|
|
(12,730 |
) |
|
(108.30 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
46,474 |
|
|
|
43,193 |
|
|
|
42,573 |
|
|
|
3,281 |
|
|
7.60 |
% |
Occupancy |
|
|
7,061 |
|
|
|
6,233 |
|
|
|
6,981 |
|
|
|
828 |
|
|
13.28 |
% |
Furniture and equipment |
|
|
3,648 |
|
|
|
3,333 |
|
|
|
3,621 |
|
|
|
315 |
|
|
9.45 |
% |
Amortization of intangible assets |
|
|
1,162 |
|
|
|
1,281 |
|
|
|
1,236 |
|
|
|
(119 |
) |
|
(9.29 |
)% |
Other expenses |
|
|
26,953 |
|
|
|
28,444 |
|
|
|
29,602 |
|
|
|
(1,491 |
) |
|
(5.24 |
)% |
Total expenses |
|
|
85,298 |
|
|
|
82,484 |
|
|
|
84,013 |
|
|
|
2,814 |
|
|
3.41 |
% |
Income before income tax, corporate allocation and noncontrolling
interest |
|
|
28,836 |
|
|
|
39,548 |
|
|
|
31,117 |
|
|
|
(10,712 |
) |
|
(27.09 |
)% |
Corporate allocation |
|
|
1,069 |
|
|
|
1,200 |
|
|
|
1,054 |
|
|
|
(131 |
) |
|
(10.92 |
)% |
Income before income tax provision and noncontrolling interest |
|
|
29,905 |
|
|
|
40,748 |
|
|
|
32,171 |
|
|
|
(10,843 |
) |
|
(26.61 |
)% |
Provision for income tax expense |
|
|
4,105 |
|
|
|
7,651 |
|
|
|
2,661 |
|
|
|
(3,546 |
) |
|
(46.35 |
)% |
Net income |
|
|
25,800 |
|
|
|
33,097 |
|
|
|
29,510 |
|
|
|
(7,297 |
) |
|
(22.05 |
)% |
Noncontrolling interest |
|
|
120 |
|
|
|
— |
|
|
|
— |
|
|
|
120 |
|
|
N/M |
Net income attributable to TowneBank |
|
$ |
25,920 |
|
|
$ |
33,097 |
|
|
$ |
29,510 |
|
|
$ |
(7,177 |
) |
|
(21.68 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (non-GAAP) |
|
|
74.40 |
% |
|
|
60.70 |
% |
|
|
70.17 |
% |
|
|
13.70 |
% |
|
22.57 |
% |
TOWNEBANK |
Realty Segment Financial Information
(unaudited) |
(dollars in thousands) |
|
|
|
|
|
|
|
|
Three Months Ended |
|
Increase/(Decrease) |
|
|
March 31, |
|
December 31, |
|
YTD 2024 over 2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
Amount |
|
Percent |
Revenue |
|
|
|
|
|
|
|
|
|
|
Residential mortgage brokerage income, net |
|
$ |
10,798 |
|
|
$ |
9,794 |
|
|
$ |
8,322 |
|
|
$ |
1,004 |
|
|
10.25 |
% |
Real estate brokerage income, net |
|
|
— |
|
|
|
1,791 |
|
|
|
(32 |
) |
|
|
(1,791 |
) |
|
(100.00 |
)% |
Title insurance and settlement fees |
|
|
— |
|
|
|
291 |
|
|
|
— |
|
|
|
(291 |
) |
|
(100.00 |
)% |
Property management fees, net |
|
|
16,773 |
|
|
|
15,535 |
|
|
|
7,358 |
|
|
|
1,238 |
|
|
7.97 |
% |
Income (loss) from unconsolidated subsidiary |
|
|
30 |
|
|
|
66 |
|
|
|
(425 |
) |
|
|
(36 |
) |
|
(54.55 |
)% |
Net interest and other income |
|
|
784 |
|
|
|
184 |
|
|
|
1,111 |
|
|
|
600 |
|
|
326.09 |
% |
Total revenue |
|
|
28,385 |
|
|
|
27,661 |
|
|
|
16,334 |
|
|
|
724 |
|
|
2.62 |
% |
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses |
|
|
99 |
|
|
|
(84 |
) |
|
|
(385 |
) |
|
|
183 |
|
|
(217.86 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
12,188 |
|
|
|
14,839 |
|
|
|
11,288 |
|
|
|
(2,651 |
) |
|
(17.87 |
)% |
Occupancy |
|
|
1,569 |
|
|
|
2,021 |
|
|
|
1,600 |
|
|
|
(452 |
) |
|
(22.37 |
)% |
Furniture and equipment |
|
|
594 |
|
|
|
693 |
|
|
|
611 |
|
|
|
(99 |
) |
|
(14.29 |
)% |
Amortization of intangible assets |
|
|
677 |
|
|
|
683 |
|
|
|
737 |
|
|
|
(6 |
) |
|
(0.88 |
)% |
Other expenses |
|
|
8,199 |
|
|
|
8,437 |
|
|
|
7,240 |
|
|
|
(238 |
) |
|
(2.82 |
)% |
Total expenses |
|
|
23,227 |
|
|
|
26,673 |
|
|
|
21,476 |
|
|
|
(3,446 |
) |
|
(12.92 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
tax, corporate allocation and noncontrolling interest |
|
|
5,059 |
|
|
|
1,072 |
|
|
|
(4,757 |
) |
|
|
3,987 |
|
|
371.92 |
% |
Corporate allocation |
|
|
(348 |
) |
|
|
(600 |
) |
|
|
(352 |
) |
|
|
252 |
|
|
(42.00 |
)% |
Income (loss) before income
tax provision and noncontrolling interest |
|
|
4,711 |
|
|
|
472 |
|
|
|
(5,109 |
) |
|
|
4,239 |
|
|
898.09 |
% |
Provision for income tax expense |
|
|
1,156 |
|
|
|
182 |
|
|
|
(1,072 |
) |
|
|
974 |
|
|
535.16 |
% |
Net income (loss) |
|
|
3,555 |
|
|
|
290 |
|
|
|
(4,037 |
) |
|
|
3,265 |
|
|
1,125.86 |
% |
Noncontrolling interest |
|
|
(560 |
) |
|
|
(145 |
) |
|
|
259 |
|
|
|
(415 |
) |
|
(286.21 |
)% |
Net income (loss) attributable
to TowneBank |
|
$ |
2,995 |
|
|
$ |
145 |
|
|
$ |
(3,778 |
) |
|
|
2,850 |
|
|
1,965.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio excluding gain on equity
investment (non-GAAP) |
|
|
79.44 |
% |
|
|
93.96 |
% |
|
|
126.97 |
% |
|
|
(14.52 |
)% |
|
(15.45 |
)% |
TOWNEBANK |
Insurance Segment Financial Information
(unaudited) |
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Increase/(Decrease) |
|
|
March 31, |
|
December 31, |
|
YTD 2024 over 2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
Amount |
|
Percent |
Commission and fee income |
|
|
|
|
|
|
|
|
|
|
Property and casualty |
|
$ |
20,722 |
|
|
$ |
18,129 |
|
|
$ |
19,795 |
|
|
$ |
2,593 |
|
|
14.30 |
% |
Employee benefits |
|
|
4,826 |
|
|
|
4,587 |
|
|
|
4,332 |
|
|
|
239 |
|
|
5.21 |
% |
Specialized benefit services |
|
|
9 |
|
|
|
159 |
|
|
|
36 |
|
|
|
(150 |
) |
|
(94.34 |
)% |
Total commissions and fees |
|
|
25,557 |
|
|
|
22,875 |
|
|
|
24,163 |
|
|
|
2,682 |
|
|
11.72 |
% |
|
|
|
|
|
|
|
|
|
|
|
Contingency and bonus revenue |
|
|
4,503 |
|
|
|
4,369 |
|
|
|
1,276 |
|
|
|
134 |
|
|
3.07 |
% |
Other income |
|
|
11 |
|
|
|
6 |
|
|
|
8 |
|
|
|
5 |
|
|
83.33 |
% |
Total revenue |
|
|
30,071 |
|
|
|
27,250 |
|
|
|
25,447 |
|
|
|
2,821 |
|
|
10.35 |
% |
|
|
|
|
|
|
|
|
|
|
|
Employee commission expense |
|
|
4,512 |
|
|
|
4,553 |
|
|
|
4,197 |
|
|
|
(41 |
) |
|
(0.90 |
)% |
Revenue, net of commission expense |
|
|
25,559 |
|
|
|
22,697 |
|
|
|
21,250 |
|
|
|
2,862 |
|
|
12.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
12,715 |
|
|
|
11,388 |
|
|
|
12,174 |
|
|
|
1,327 |
|
|
11.65 |
% |
Occupancy |
|
|
792 |
|
|
|
810 |
|
|
|
727 |
|
|
|
(18 |
) |
|
(2.22 |
)% |
Furniture and equipment |
|
|
236 |
|
|
|
218 |
|
|
|
213 |
|
|
|
18 |
|
|
8.26 |
% |
Amortization of intangible assets |
|
|
1,407 |
|
|
|
1,560 |
|
|
|
1,438 |
|
|
|
(153 |
) |
|
(9.81 |
)% |
Other expenses |
|
|
1,916 |
|
|
|
1,264 |
|
|
|
1,853 |
|
|
|
652 |
|
|
51.58 |
% |
Total operating expenses |
|
|
17,066 |
|
|
|
15,240 |
|
|
|
16,405 |
|
|
|
1,826 |
|
|
11.98 |
% |
Income before income tax, corporate allocation and noncontrolling
interest |
|
|
8,493 |
|
|
|
7,457 |
|
|
|
4,845 |
|
|
|
1,036 |
|
|
13.89 |
% |
Corporate allocation |
|
|
(721 |
) |
|
|
(600 |
) |
|
|
(702 |
) |
|
|
(121 |
) |
|
20.17 |
% |
Income before income tax provision and noncontrolling interest |
|
|
7,772 |
|
|
|
6,857 |
|
|
|
4,143 |
|
|
|
915 |
|
|
13.34 |
% |
Provision for income tax expense |
|
|
2,000 |
|
|
|
1,766 |
|
|
|
1,071 |
|
|
|
234 |
|
|
13.25 |
% |
Net income |
|
|
5,772 |
|
|
|
5,091 |
|
|
|
3,072 |
|
|
|
681 |
|
|
13.38 |
% |
Noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
N/M |
Net income attributable to TowneBank |
|
$ |
5,772 |
|
|
$ |
5,091 |
|
|
$ |
3,072 |
|
|
|
681 |
|
|
13.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
2,000 |
|
|
|
1,766 |
|
|
|
1,071 |
|
|
|
234 |
|
|
13.25 |
% |
Depreciation, amortization and interest expense |
|
|
1,553 |
|
|
|
1,706 |
|
|
|
1,588 |
|
|
|
(153 |
) |
|
(8.97 |
)% |
EBITDA(non-GAAP) |
|
$ |
9,325 |
|
|
$ |
8,563 |
|
|
$ |
5,731 |
|
|
|
762 |
|
|
8.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio(non-GAAP) |
|
|
61.27 |
% |
|
|
60.27 |
% |
|
|
70.43 |
% |
|
|
1.00 |
% |
|
1.66 |
% |
TOWNEBANK |
Reconciliation of Non-GAAP Financial Measures |
(dollars in thousands) |
|
|
|
Three Months Ended |
|
|
March 31, |
|
March 31, |
|
December 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
Return on average assets (GAAP) |
|
|
0.83 |
% |
|
|
0.95 |
% |
|
|
0.68 |
% |
Impact of excluding average goodwill and other intangibles and
amortization |
|
|
0.09 |
% |
|
|
0.10 |
% |
|
|
0.09 |
% |
Return on average tangible assets (non-GAAP) |
|
|
0.92 |
% |
|
|
1.05 |
% |
|
|
0.77 |
% |
|
|
|
|
|
|
|
Return on average equity (GAAP) |
|
|
6.84 |
% |
|
|
7.99 |
% |
|
|
5.75 |
% |
Impact of excluding average goodwill and other intangibles and
amortization |
|
|
3.03 |
% |
|
|
3.72 |
% |
|
|
2.78 |
% |
Return on average tangible equity (non-GAAP) |
|
|
9.87 |
% |
|
|
11.71 |
% |
|
|
8.53 |
% |
|
|
|
|
|
|
|
Return on average common equity (GAAP) |
|
|
6.89 |
% |
|
|
8.05 |
% |
|
|
5.79 |
% |
Impact of excluding average goodwill and other intangibles and
amortization |
|
|
3.09 |
% |
|
|
3.78 |
% |
|
|
2.83 |
% |
Return on average tangible common equity (non-GAAP) |
|
|
9.98 |
% |
|
|
11.83 |
% |
|
|
8.62 |
% |
|
|
|
|
|
|
|
Book value (GAAP) |
|
$ |
27.33 |
|
|
$ |
26.40 |
|
|
$ |
27.24 |
|
Impact of excluding average goodwill and other intangibles and
amortization |
|
|
(7.02 |
) |
|
|
(7.36 |
) |
|
|
(6.96 |
) |
Tangible book value (non-GAAP) |
|
$ |
20.31 |
|
|
$ |
19.04 |
|
|
$ |
20.28 |
|
|
|
|
|
|
|
|
Efficiency ratio (GAAP) |
|
|
75.16 |
% |
|
|
67.55 |
% |
|
|
78.36 |
% |
Impact of exclusions |
|
|
(1.91 |
)% |
|
|
(1.91 |
)% |
|
|
(2.19 |
)% |
Efficiency ratio (non-GAAP) |
|
|
73.25 |
% |
|
|
65.64 |
% |
|
|
76.17 |
% |
|
|
|
|
|
|
|
Average assets (GAAP) |
|
$ |
16,864,235 |
|
|
$ |
16,349,040 |
|
|
$ |
16,683,041 |
|
Less: average goodwill and intangible assets |
|
|
522,675 |
|
|
|
521,972 |
|
|
|
523,086 |
|
Average tangible assets (non-GAAP) |
|
$ |
16,341,560 |
|
|
$ |
15,827,068 |
|
|
$ |
16,159,955 |
|
|
|
|
|
|
|
|
Average equity (GAAP) |
|
$ |
2,040,275 |
|
|
$ |
1,946,002 |
|
|
$ |
1,988,302 |
|
Less: average goodwill and intangible assets |
|
|
522,675 |
|
|
|
521,972 |
|
|
|
523,086 |
|
Average tangible equity (non-GAAP) |
|
$ |
1,517,600 |
|
|
$ |
1,424,030 |
|
|
$ |
1,465,216 |
|
|
|
|
|
|
|
|
Average common equity (GAAP) |
|
$ |
2,024,169 |
|
|
$ |
1,931,063 |
|
|
$ |
1,972,138 |
|
Less: average goodwill and intangible assets |
|
|
522,675 |
|
|
|
521,972 |
|
|
|
523,086 |
|
Average tangible common equity (non-GAAP) |
|
$ |
1,501,494 |
|
|
$ |
1,409,091 |
|
|
$ |
1,449,052 |
|
|
|
|
|
|
|
|
Net income (GAAP) |
|
$ |
34,687 |
|
|
$ |
38,333 |
|
|
$ |
28,804 |
|
Amortization of intangibles, net of tax |
|
|
2,564 |
|
|
|
2,784 |
|
|
|
2,695 |
|
Tangible net income (non-GAAP) |
|
$ |
37,251 |
|
|
$ |
41,117 |
|
|
$ |
31,499 |
|
|
|
|
|
|
|
|
Total revenue (GAAP) |
|
$ |
167,102 |
|
|
$ |
184,144 |
|
|
$ |
155,546 |
|
Net (gain)/loss on investment securities |
|
|
(74 |
) |
|
|
— |
|
|
|
— |
|
Other nonrecurring (income) loss |
|
|
— |
|
|
|
— |
|
|
|
10 |
|
Total Revenue for efficiency calculation (non-GAAP) |
|
$ |
167,028 |
|
|
$ |
184,144 |
|
|
$ |
155,556 |
|
|
|
|
|
|
|
|
Noninterest expense (GAAP) |
|
$ |
125,591 |
|
|
$ |
124,397 |
|
|
$ |
121,895 |
|
Less: amortization of intangibles |
|
|
3,246 |
|
|
|
3,524 |
|
|
|
3,411 |
|
Noninterest expense net of amortization (non-GAAP) |
|
$ |
122,345 |
|
|
$ |
120,873 |
|
|
$ |
118,484 |
|
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 |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
Net income (GAAP) |
|
$ |
34,687 |
|
|
$ |
28,804 |
|
|
$ |
44,862 |
|
|
$ |
41,716 |
|
|
$ |
38,333 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
|
|
|
|
Plus: Acquisition-related expenses, net of tax |
|
|
564 |
|
|
|
56 |
|
|
|
458 |
|
|
|
2,457 |
|
|
|
4,803 |
|
Plus: Initial provision for acquired loans, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,166 |
|
Plus: FDIC special assessment, net of tax |
|
|
1,021 |
|
|
|
4,083 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: Gain on sale of equity investments, net of noncontrolling
interest |
|
|
— |
|
|
|
(1,846 |
) |
|
|
(438 |
) |
|
|
(5,513 |
) |
|
|
— |
|
Core operating earnings, excluding certain items affecting
comparability (non-GAAP) |
|
$ |
36,272 |
|
|
$ |
31,097 |
|
|
$ |
44,882 |
|
|
$ |
38,660 |
|
|
$ |
46,302 |
|
Weighted average diluted shares |
|
|
74,979,501 |
|
|
|
74,793,557 |
|
|
|
74,765,515 |
|
|
|
74,699,810 |
|
|
|
74,390,614 |
|
Diluted EPS (GAAP) |
|
$ |
0.46 |
|
|
$ |
0.39 |
|
|
$ |
0.60 |
|
|
$ |
0.56 |
|
|
$ |
0.52 |
|
Diluted EPS, excluding certain items affecting comparability
(non-GAAP) |
|
$ |
0.48 |
|
|
$ |
0.42 |
|
|
$ |
0.60 |
|
|
$ |
0.52 |
|
|
$ |
0.62 |
|
Average assets |
|
$ |
16,864,235 |
|
|
$ |
16,683,041 |
|
|
$ |
16,762,859 |
|
|
$ |
16,826,965 |
|
|
$ |
16,349,040 |
|
Average tangible equity |
|
$ |
1,517,600 |
|
|
$ |
1,465,216 |
|
|
|
1,460,024 |
|
|
$ |
1,447,955 |
|
|
$ |
1,424,030 |
|
Average common tangible equity |
|
$ |
1,501,494 |
|
|
$ |
1,449,052 |
|
|
$ |
1,443,453 |
|
|
$ |
1,432,506 |
|
|
$ |
1,409,091 |
|
Return on average assets, excluding certain items affecting
comparability (non-GAAP) |
|
|
0.87 |
% |
|
|
0.74 |
% |
|
|
1.06 |
% |
|
|
0.92 |
% |
|
|
1.15 |
% |
Return on average tangible equity, excluding certain items
affecting comparability (non-GAAP) |
|
|
10.29 |
% |
|
|
9.15 |
% |
|
|
12.97 |
% |
|
|
11.50 |
% |
|
|
13.98 |
% |
Return on average common tangible equity, excluding certain items
affecting comparability (non-GAAP) |
|
|
10.40 |
% |
|
|
9.25 |
% |
|
|
13.13 |
% |
|
|
11.62 |
% |
|
|
14.13 |
% |
Efficiency ratio, excluding certain items affecting comparability
(non-GAAP) |
|
|
74.84 |
% |
|
|
78.33 |
% |
|
|
67.76 |
% |
|
|
67.32 |
% |
|
|
64.32 |
% |
TowneBank (NASDAQ:TOWN)
과거 데이터 주식 차트
부터 2월(2) 2025 으로 3월(3) 2025
TowneBank (NASDAQ:TOWN)
과거 데이터 주식 차트
부터 3월(3) 2024 으로 3월(3) 2025