TowneBank (TOWN) investor relations material

Executive summary

• Achieved 22% CAGR in earnings from FY2000 to FY2025, with total assets at $22.6B and total loans at $15.2B as of Q2-26.

• Net income for Q2 2026 was $193.19 million ($2.09 per diluted share), up from $40.89 million ($0.54 per share) in Q2 2025, driven by a $198.55 million gain on the sale of the Resort Property Management segment.

• Core earnings (non-GAAP) were $72.01 million ($0.78 per share), compared to $63.39 million ($0.84 per share) in Q2 2025.

• Ranked #1 in deposit market share in Hampton Roads and featured on Forbes Best Banks List for 8 consecutive years.

• Strategic growth in the Carolinas and expansion of the Insurance business are ongoing priorities.

Financial highlights

• Total revenue for Q2-26 was $444.27M, up 80% sequentially and 111.46% year-over-year, with noninterest income up $186.27M due to the segment sale.

• Net interest income rose 7% sequentially and 35% year-over-year to $185.12M, with net interest margin at 3.70% (tax-equivalent).

• Total deposits grew 1.26% sequentially to $18.71B; noninterest-bearing deposits rose 4.39%.

• Loans held for investment decreased 0.60% sequentially to $15.17B.

• Diluted EPS was $2.09, up 364% sequentially and 287% year-over-year.

Outlook and guidance

• Targeting mid-single digit annualized core loan growth.

• Net interest income expected between $745M-$760M and noninterest income of $235M-$245M for FY2026, excluding one-time gains.

• Noninterest expense forecasted at $610M-$625M for FY2026, excluding one-time items.

• Net interest income will be impacted by net purchase accounting accretion income of $6.56M in the remainder of 2026 and $10.31M in 2027.

• Continued focus on talent acquisition and strategic expansion in high-growth markets.