TowneBank (TOWN) Q4 2024 earnings summary

Executive summary

• Q4 2024 net income rose 43.3% year-over-year to $41.27 million, with diluted EPS up 41% to $0.55.

• Achieved 13.9% year-over-year revenue growth in Q4 2024, with total revenue of $177.16 million.

• Full-year 2024 net income was $161.76 million ($2.15/diluted share), up from $153.72 million ($2.06) in 2023.

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

• 10-year total shareholder return of 198%, outperforming peers.

Financial highlights

• Net interest income increased 9.6% year-over-year to $118.06 million in Q4 2024.

• Noninterest income grew 23.6% year-over-year to $59.10 million in Q4 2024.

• Total 2024 revenues were $693.75 million, slightly down from $694.12 million in 2023.

• Noninterest expense rose 4.6% year-over-year to $127.44 million in Q4 2024.

• Effective tax rate for 2024 was 14.60%, down from 16.82% in 2023.

Outlook and guidance

• Targeting mid-single digit annualized loan growth for FY2025.

• Net interest income expected between $510-520 million and noninterest income of $265-275 million for FY2025.

• Noninterest expense projected at $515-525 million for FY2025.

• Anticipates stable credit quality with potential incremental reserve build in H2 FY2025.

• Management expects to close the Village Bank acquisition in Q1 2025 and is optimistic about loan and deposit growth.