Virginia's TowneBank Q4 revenue misses estimates

Overview

• Virginia-based bank's Q4 revenue grew 25.29% yr/yr but missed analyst expectations

• Adjusted EPS for Q4 missed analyst expectations

• Company completed acquisitions of Old Point Financial and Village Bank

Outlook

• TowneBank focuses on integrating recent acquisitions and expanding products in 2026

• Company emphasizes strong balance sheet amid macroeconomic challenges

• TowneBank did not provide specific financial guidance for 2026 in its press release

Result Drivers

• ACQUISITIONS - Completed acquisitions of Old Point Financial and Village Bank added $1.53 bln in loans and $1.85 bln in deposits, boosting revenue

• INTEREST INCOME - Net interest income increased $40.91 mln due to higher loan interest income and lower deposit costs

• MARGIN EXPANSION - Net interest margin improved to 3.56% from 2.99% in the prior year quarter, aided by acquisition-driven growth and higher yields

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 $41.00, about 13.1% above its January 27 closing price of $36.25

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNX5K7kRD

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