TowneBank (TOWN) investor relations material

Executive summary

• Q3 2026 net income attributable to common shareholders was $81.78M, or $0.88 diluted EPS; core net income was $83.85M, or $0.91 per diluted share.

• Revenue was $257.89M, up 15.86% YoY and down 42% QoQ, primarily reflecting the prior quarter’s $198.55M Resort Property Management sale gain.

• Tax-equivalent NIM was 3.92%; assets were $22.18B, loans $15.10B and deposits $18.46B, up 13%, 13% and 12% YoY.

Financial highlights

• Net interest income was $196.21M, up 6% YoY; provision for credit losses was a $1.18M benefit versus $15.28M expense in Q3 2025.

• Noninterest income was $61.68M, down 18% YoY; noninterest expense was $159.47M, up 3.73% YoY, including $3.19M of acquisition-related expenses.

• Nine-month GAAP net income attributable to common shareholders was $315.96M, or $3.44 diluted EPS; core net income was $222.59M versus $176.26M and core diluted EPS was $2.42 versus $2.32.

Outlook and guidance

• Targeting annualized core loan growth in the low single digits; credit quality is expected to remain stable near term, with potential reserve build aligned with loan growth.

• Net interest income guidance is $190–200M for Q4 and $745–760M for FY26, tax-equivalent and inclusive of Dogwood State Bank; base forecast assumes no further rate changes after the recent increase.

• Noninterest income guidance is $50–55M for Q4 and $240–250M for FY26, reflecting the Resort Property Management sale but excluding its $198.6M one-time gain; expense guidance is $155–160M and $625–635M, respectively, excluding one-time M&A costs and a $25M Foundation contribution.

• Priorities include maintaining capital and liquidity for growth, integrating Dogwood systems, growing the Towne Financial Services platform and pursuing strategically aligned M&A; purchase-accounting accretion is expected to be $3.50M for the rest of 2026 and $11.61M in 2027.