TowneBank (TOWN) Q3 2024 earnings summary

Executive summary

• Total assets reached $17.2B at September 30, 2024, up 2.10% from December 31, 2023, with 23.5% CAGR in earnings from FY00–FY23.

• Q3 2024 net income was $42.95M ($0.57 per diluted share), down 4.26% year-over-year; core earnings (non-GAAP) were $43.39M ($0.58).

• Announced acquisition of Village Bank and Trust Financial Corp., expected to close in Q1 2025, expanding Richmond presence.

• Ranked #1 in deposit market share in Hampton Roads and recognized on Forbes Best Banks list for six years.

• Diversified business model with significant contributions from banking, insurance, mortgage, and property management.

Financial highlights

• Q3 2024 total revenue was $174.52M, up 0.96% year-over-year; net interest income was $112.28M, down 0.69% year-over-year.

• Noninterest income rose 4.06% to $62.24M, led by mortgage banking and insurance commissions.

• Noninterest expense increased 7.81% to $126.90M, mainly due to higher salaries, benefits, and professional fees.

• Net interest margin (TE) was 2.93%, up from 2.89% in Q2 2024 but down from 2.98% in Q3 2023.

• Book value per share rose 8.8% year-over-year to $28.59; tangible book value per share up 12.3% to $21.65.

Outlook and guidance

• Management expects continued margin improvements and mid-single digit growth rates in 2025.

• Loan growth is expected to align with deposit growth, targeting low to mid-single digit annualized increases.

• Net interest income projected at $113–$118M and noninterest income at $53–$58M for Q4 2024.

• Noninterest expense run rate expected at $123–$126M for Q4 2024 (excluding M&A).

• Focus on balance sheet strength, liquidity, and disciplined capital management.