TowneBank (TOWN) Q3 2025 earnings summary

Executive summary

• Achieved 23.6% year-over-year revenue growth in Q3 2025, with total revenue reaching $215.67 million.

• Net income for Q3 2025 was $38.98 million, a 9.2% decrease year-over-year, with diluted EPS of $0.51; core earnings (non-GAAP) rose to $63.45 million ($0.83/diluted share).

• Total assets reached $19.68 billion at September 30, 2025, up 14.5% year-over-year, driven by the acquisitions of Old Point and Village banks.

• Completed acquisitions of Old Point Financial and Village Bank, with a pending Dogwood State Bank acquisition expected to close in Q1 2026.

• Maintained #1 deposit market share in Hampton Roads and ranked on Forbes Best Banks List for seven consecutive years.

Financial highlights

• Net interest income for Q3 2025 was $146.95 million, up 30.88% year-over-year; noninterest income was $68.71 million, up 10.4%.

• Total assets grew to $19.68 billion; loans increased 17.2% to $13.38 billion; deposits rose 15.1% to $16.53 billion.

• Net interest margin (tax equivalent) expanded to 3.50% from 2.93% a year ago.

• Provision for credit losses increased to $15.28 million from a net benefit last year, reflecting acquisition-related provisions and loan growth.

• Noninterest expense increased 21.1% year-over-year to $153.74 million, with $17.81 million in acquisition-related expenses.

Outlook and guidance

• Targeting mid-single digit annualized core loan growth and disciplined balance sheet management.

• FY2025 net interest income expected between $560–570 million; noninterest income $270–275 million; noninterest expense $545–555 million (excluding one-time M&A expenses).

• Management expects continued softness in mortgage banking due to the current interest rate environment and low inventory.

• Integration of Old Point expected to complete in Q1 2026; Dogwood system integration scheduled for H2 2026.

• Strategic focus on capital and liquidity to support growth and opportunistic M&A.