TowneBank Q2 revenue up 18.6%, beats expectations

Overview

• TowneBank Q2 revenue grows 18.56%, beating analyst expectations, per LSEG data

• Adjusted EPS for Q2 beats consensus, driven by strategic acquisitions

• Company completed Village Bank acquisition, boosting loans and deposits

Outlook

• TowneBank expects tax rate to normalize in H2 2025

• Company anticipates earnings momentum from strategic partnerships

Result Drivers

• VILLAGE BANK ACQUISITION - Acquisition contributed $576.57 mln in loans and $637.49 mln in deposits

• LOAN GROWTH - Organic loan growth climbed nearly 5% on an annualized basis

• MARGIN EXPANSION - Net interest margin expanded 24 basis points, aided by Village Bank partnership

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for TowneBank is $38.50, about 7.3% above its July 22 closing price of $35.70

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nGNX28H1XL