TowneBank (TOWN) investor relations material

Executive summary

• Achieved 35% year-over-year total revenue growth to $246.45M in Q1 2026, with net income of $40.99M, down 6% from Q1 2025; core earnings rose to $66.73M.

• Total assets reached $22.4B, up 28% year-over-year, with loans and deposits growing 31% and 27%, respectively.

• Completed acquisition of Dogwood State Bank in January 2026, adding $1.95B in loans and $1.93B in deposits.

• Sold Resort Property Management segment for $250M, with an anticipated gain of $195M; guidance excludes one-time gains.

Financial highlights

• Net interest income rose 44% year-over-year to $172.94M; net interest margin (TE) improved to 3.60%.

• Noninterest income increased 17% year-over-year to $73.51M, led by insurance and mortgage banking.

• Noninterest expense grew 50% year-over-year to $195.89M, including acquisition-related costs.

• Book value per share increased 8% year-over-year to $31.31; tangible book value per share declined 3% to $21.49.

• Allowance for credit losses on loans increased to $199.27M (1.31% of loans); net charge-offs were $1.69M (0.05% of average loans annualized).

Outlook and guidance

• Targeting mid-single digit annualized core loan growth.

• Net interest income expected between $745M–$760M and noninterest income $235M–$245M for FY2026.

• Noninterest expense forecasted at $605M–$615M for FY2026, excluding one-time M&A expenses.

• Net interest income to be impacted by purchase accounting accretion income of $8.34M in 2026 and $9.12M in 2027.

• Anticipates stable credit quality with potential incremental reserve build and strategic focus on capital and liquidity.