DB:3T8

Stock Analysis Report

Executive Summary

TowneBank provides retail and commercial banking services for small- and medium-size businesses, professionals, and individuals.

Snowflake

Fundamentals

Flawless balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has TowneBank's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.8%

3T8

4.2%

DE Banks

1.7%

DE Market


1 Year Return

3.9%

3T8

-26.4%

DE Banks

7.2%

DE Market

Return vs Industry: 3T8 exceeded the German Banks industry which returned -26.4% over the past year.

Return vs Market: 3T8 underperformed the German Market which returned 7.2% over the past year.


Shareholder returns

3T8IndustryMarket
7 Day0.8%4.2%1.7%
30 Day0.1%-0.6%2.4%
90 Day2.6%-7.4%2.3%
1 Year6.7%3.9%-24.1%-26.4%10.6%7.2%
3 Year16.5%9.4%-4.2%-8.9%18.4%8.1%
5 Year153.1%125.7%-10.2%-32.1%42.3%22.9%

Price Volatility Vs. Market

How volatile is TowneBank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is TowneBank undervalued compared to its fair value and its price relative to the market?

22.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3T8 (€25) is trading below our estimate of fair value (€32.23)

Significantly Below Fair Value: 3T8 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 3T8 is good value based on its PE Ratio (14.4x) compared to the Banks industry average (16x).

PE vs Market: 3T8 is good value based on its PE Ratio (14.4x) compared to the German market (19x).


Price to Earnings Growth Ratio

PEG Ratio: 3T8's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 3T8 is overvalued based on its PB Ratio (1.3x) compared to the DE Banks industry average (0.8x).


Next Steps

Future Growth

How is TowneBank forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3T8's earnings are forecast to decline over the next 3 years (-1.2% per year).

Earnings vs Market: 3T8's earnings are forecast to decline over the next 3 years (-1.2% per year).

High Growth Earnings: 3T8's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 3T8's revenue (3.7% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: 3T8's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 3T8's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has TowneBank performed over the past 5 years?

25.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 3T8's earnings have grown significantly by 25% per year over the past 5 years.

Accelerating Growth: 3T8's earnings growth over the past year (41.8%) exceeds its 5-year average (25% per year).

Earnings vs Industry: 3T8 earnings growth over the past year (41.8%) exceeded the Banks industry -11.7%.


Return on Equity

High ROE: 3T8's Return on Equity (9%) is considered low.


Return on Assets

ROA vs Industry: 3T8 has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate 3T8's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is TowneBank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 3T8 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 3T8's debt is covered by short term assets (assets are 1.609060x debt).


Financial Institutions Analysis

Asset Level: 3T8's level of assets compared to its equity is low.

Allowance for Bad Loans: 3T8 has a sufficient allowance for bad loans.

Low Risk Liabilities: 3T8's liabilities are made up of primarily low risk sources of funding.

Loan Level: 3T8 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 3T8's loans are broadly funded by customer deposits.

Level of Bad Loans: 3T8 has an appropriate level of bad loans (0.22%)


Next Steps

Dividend

What is TowneBank's current dividend yield, its reliability and sustainability?

2.57%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%1.5%markettop25%3.8%industryaverage3.6%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 3T8's dividend (2.57%) is higher than the bottom 25% of dividend payers in the German market (1.48%).

High Dividend: 3T8's dividend (2.57%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: 3T8's dividends per share have been stable in the past 10 years.

Growing Dividend: 3T8's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.8%), 3T8's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of TowneBank's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

J. Davis (68yo)

1.6yrs

Tenure

US$2,090,269

Compensation

Mr. J. Morgan Davis has been Chief Executive Officer, President TowneBank since March 2018.And he was Chief Banking Officer at TowneBank since March 2018. Mr. Davis served as the President and Chief Bankin ...


CEO Compensation Analysis

Compensation vs. Market: J. has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the German market.

Compensation vs Earnings: J.'s compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.0yrs

Average Tenure

63yo

Average Age

Experienced Management: 3T8's management team is considered experienced (3 years average tenure).


Board Age and Tenure

17.6yrs

Average Tenure

68.5yo

Average Age

Experienced Board: 3T8's board of directors are seasoned and experienced ( 17.6 years average tenure).


Insider Trading

Insider Buying: 3T8 insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$195,87519 Sep 19
William Lewis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,801
Max PriceUS$25.11
BuyUS$197,63919 Sep 19
F. Wood
EntityIndividual
Shares7,801
Max PriceUS$25.34
SellUS$17,35618 Sep 19
Juan Montero
EntityIndividual
Shares680
Max PriceUS$25.52
SellUS$14,57314 Aug 19
William Foster
EntityIndividual
Role
Member of the Board of Directors
President of Commercial and Real Estate Banking & Director
Shares615
Max PriceUS$23.70
SellUS$18,16830 Jul 19
Andrew Fine
EntityIndividual
Shares735
Max PriceUS$24.72
SellUS$73,57530 Jul 19
Brad Schwartz
EntityIndividual
Role
Member of the Board of Directors
Senior EVP
Shares2,953
Max PriceUS$24.92
SellUS$15,35819 Jun 19
Kevin Fly
EntityIndividual
Role
Chief Accounting Officer
Senior EVP & Chief Accounting Officer
Shares624
Max PriceUS$24.61
SellUS$33,52828 May 19
Richard Bray
EntityIndividual
Shares1,440
Max PriceUS$23.28
BuyUS$46601 May 19
Una Oliver
EntityIndividual
Role
Head of Marketing
Senior EVP
Shares20
Max PriceUS$23.28
SellUS$26,88401 May 19
Andrew Fine
EntityIndividual
Shares1,136
Max PriceUS$23.67
BuyUS$33129 Apr 19
Keith Horton
EntityIndividual
Shares14
Max PriceUS$23.67
BuyUS$37929 Apr 19
Richard Bray
EntityIndividual
Shares16
Max PriceUS$23.67
BuyUS$33129 Apr 19
Jacqueline Amato
EntityIndividual
Role
Chairman Emeritus
Director
Shares14
Max PriceUS$23.67
BuyUS$201,70529 Apr 19
John Lawson
EntityIndividual
Shares8,523
Max PriceUS$23.67
BuyUS$4729 Apr 19
Dawn Glynn
EntityIndividual
Shares2
Max PriceUS$23.67
BuyUS$4,68629 Apr 19
J. Davis
EntityIndividual
Role
Chief Executive Officer
President
Shares198
Max PriceUS$23.67
SellUS$11,37316 Apr 19
William Littreal
EntityIndividual
Role
Chief Financial Officer
Senior EVP
Shares502
Max PriceUS$22.66
BuyUS$1,333,06116 Apr 19
G. Aston
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares60,460
Max PriceUS$22.05
BuyUS$4712 Apr 19
Keith Horton
EntityIndividual
Shares2
Max PriceUS$23.46
BuyUS$4712 Apr 19
Una Oliver
EntityIndividual
Role
Head of Marketing
Senior EVP
Shares2
Max PriceUS$23.46
BuyUS$22612 Apr 19
William Littreal
EntityIndividual
Role
Chief Financial Officer
Senior EVP
Shares10
Max PriceUS$22.56
SellUS$7,70210 Apr 19
Philip Rudisill
EntityIndividual
Shares327
Max PriceUS$23.55
SellUS$6,72010 Apr 19
Keith Horton
EntityIndividual
Shares288
Max PriceUS$23.33
SellUS$8,24410 Apr 19
William Foster
EntityIndividual
Role
Member of the Board of Directors
President of Commercial and Real Estate Banking & Director
Shares350
Max PriceUS$23.55
SellUS$6,59510 Apr 19
Dawn Glynn
EntityIndividual
Shares280
Max PriceUS$23.55
SellUS$8,57310 Apr 19
J. Davis
EntityIndividual
Role
Chief Executive Officer
President
Shares367
Max PriceUS$23.36
SellUS$10,86310 Apr 19
G. Aston
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares465
Max PriceUS$23.36
SellUS$5,44310 Apr 19
William Littreal
EntityIndividual
Role
Chief Financial Officer
Senior EVP
Shares233
Max PriceUS$23.36
SellUS$2,33610 Apr 19
Brian Skinner
EntityIndividual
Shares100
Max PriceUS$23.36
BuyUS$35,97610 Apr 19
Elizabeth Patterson
EntityIndividual
Shares1,484
Max PriceUS$24.24
BuyUS$31,15210 Apr 19
Robert Oman
EntityIndividual
Shares1,285
Max PriceUS$24.24
SellUS$98910 Apr 19
Kevin Fly
EntityIndividual
Role
Chief Accounting Officer
Senior EVP & Chief Accounting Officer
Shares42
Max PriceUS$23.55
SellUS$5,15810 Apr 19
Una Oliver
EntityIndividual
Role
Head of Marketing
Senior EVP
Shares219
Max PriceUS$23.55
SellUS$42,34609 Apr 19
G. Aston
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares1,740
Max PriceUS$24.34
BuyUS$165,71309 Apr 19
Brad Schwartz
EntityIndividual
Role
Member of the Board of Directors
Senior EVP
Shares6,653
Max PriceUS$24.91
BuyUS$61,29909 Apr 19
William Foster
EntityIndividual
Role
Member of the Board of Directors
President of Commercial and Real Estate Banking & Director
Shares2,461
Max PriceUS$24.91
BuyUS$5026 Feb 19
Richard Bray
EntityIndividual
Shares2
Max PriceUS$24.95
SellUS$1,61721 Feb 19
Kevin Fly
EntityIndividual
Role
Chief Accounting Officer
Senior EVP & Chief Accounting Officer
Shares65
Max PriceUS$24.88
SellUS$10,37621 Feb 19
William Foster
EntityIndividual
Role
Member of the Board of Directors
President of Commercial and Real Estate Banking & Director
Shares417
Max PriceUS$24.88
SellUS$2,96421 Feb 19
Keith Horton
EntityIndividual
Shares119
Max PriceUS$24.90
SellUS$4,30921 Feb 19
George Whitley
EntityIndividual
Role
Chief Legal Officer
Chief Legal Officer & Senior EVP of Virginia Business
Shares173
Max PriceUS$24.91
SellUS$9,98721 Feb 19
Brad Schwartz
EntityIndividual
Role
Member of the Board of Directors
Senior EVP
Shares401
Max PriceUS$24.90
SellUS$3,01321 Feb 19
Brian Skinner
EntityIndividual
Shares121
Max PriceUS$24.90
SellUS$3,36221 Feb 19
Philip Rudisill
EntityIndividual
Shares135
Max PriceUS$24.90
SellUS$2,76421 Feb 19
Una Oliver
EntityIndividual
Role
Head of Marketing
Senior EVP
Shares111
Max PriceUS$24.90
SellUS$22,46421 Feb 19
William Littreal
EntityIndividual
Role
Chief Financial Officer
Senior EVP
Shares902
Max PriceUS$24.90
SellUS$12,22821 Feb 19
J. Davis
EntityIndividual
Role
Chief Executive Officer
President
Shares491
Max PriceUS$24.90
SellUS$14,79321 Feb 19
G. Aston
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares594
Max PriceUS$24.90
SellUS$8,43521 Feb 19
Dawn Glynn
EntityIndividual
Shares339
Max PriceUS$24.88
SellUS$1,17712 Feb 19
Kevin Fly
EntityIndividual
Role
Chief Accounting Officer
Senior EVP & Chief Accounting Officer
Shares50
Max PriceUS$23.54
SellUS$4,45931 Jan 19
Andrew Fine
EntityIndividual
Shares200
Max PriceUS$22.29
BuyUS$44,65929 Jan 19
William Morrison
EntityIndividual
Role
Unit Chairman
Director
Shares2,000
Max PriceUS$22.33
BuyUS$2,27408 Jan 19
Douglas Ellis
EntityIndividual
Shares100
Max PriceUS$22.74
BuyUS$3,63408 Jan 19
Bradford Cherry
EntityIndividual
Shares162
Max PriceUS$22.43
SellUS$4,63408 Jan 19
Andrew Fine
EntityIndividual
Shares189
Max PriceUS$24.92
SellUS$62,34718 Dec 18
Richard Bray
EntityIndividual
Shares2,800
Max PriceUS$22.27
SellUS$10,17714 Dec 18
William Foster
EntityIndividual
Role
Member of the Board of Directors
President of Commercial and Real Estate Banking & Director
Shares447
Max PriceUS$22.77
SellUS$11,87204 Dec 18
George Whitley
EntityIndividual
Role
Chief Legal Officer
Chief Legal Officer & Senior EVP of Virginia Business
Shares473
Max PriceUS$25.10
SellUS$17,43616 Nov 18
William Foster
EntityIndividual
Role
Member of the Board of Directors
President of Commercial and Real Estate Banking & Director
Shares715
Max PriceUS$24.39
SellUS$49,20005 Nov 18
Edward Baynor
EntityIndividual
Shares1,979
Max PriceUS$24.93
SellUS$140,58102 Nov 18
Robert Oman
EntityIndividual
Shares5,700
Max PriceUS$24.66
SellUS$141,99502 Nov 18
Robert Oman
EntityIndividual
Shares5,819
Max PriceUS$24.40
BuyUS$131,30731 Oct 18
George Whitley
EntityIndividual
Role
Chief Legal Officer
Chief Legal Officer & Senior EVP of Virginia Business
Shares5,300
Max PriceUS$24.77
BuyUS$94,77529 Oct 18
Alan Witt
EntityIndividual
Shares3,900
Max PriceUS$24.38

Ownership Breakdown


Management Team

  • Brad Schwartz (56yo)

    Senior EVP

    • Tenure: 3.3yrs
    • Compensation: US$1.19m
  • Bob Aston (74yo)

    Executive Chairman

    • Tenure: 21.8yrs
    • Compensation: US$2.35m
  • Una Oliver (67yo)

    Senior EVP

    • Tenure: 20.8yrs
  • Thomas Hasty (63yo)

    Senior Executive Vice President of Risk Management

    • Tenure: 20.8yrs
  • J. Davis (68yo)

    President

    • Tenure: 1.6yrs
    • Compensation: US$2.09m
  • Shirley Sasser

    Senior VP & Director of Corporate Sales

    • Tenure: 0yrs
  • Bill Littreal (49yo)

    Senior EVP

    • Tenure: 1.6yrs
    • Compensation: US$1.19m
  • Will Morrison (56yo)

    Director

    • Tenure: 0yrs
    • Compensation: US$1.52m
  • George Whitley (66yo)

    Chief Legal Officer & Senior EVP of Virginia Business

    • Tenure: 3yrs
  • Kevin Fly (53yo)

    Senior EVP & Chief Accounting Officer

    • Tenure: 1.4yrs

Board Members

  • Gordon Gentry (82yo)

    Chairman of TowneBank Peninsula

    • Tenure: 0yrs
    • Compensation: US$53.21k
  • Brad Schwartz (56yo)

    Senior EVP

    • Tenure: 3.3yrs
    • Compensation: US$1.19m
  • Bob Aston (74yo)

    Executive Chairman

    • Tenure: 21.8yrs
    • Compensation: US$2.35m
  • Jeff Benson (57yo)

    Vice Chairman of the Board

    • Tenure: 3.3yrs
    • Compensation: US$53.38k
  • Bill Foster (63yo)

    President of Commercial and Real Estate Banking & Director

    • Tenure: 14.4yrs
  • William Lewis (73yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$48.73k
  • John Failes (74yo)

    Vice Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$54.58k
  • Jackie Amato (69yo)

    Director

    • Tenure: 0yrs
    • Compensation: US$3.62m
  • J. Davis (68yo)

    President

    • Tenure: 1.6yrs
    • Compensation: US$2.09m
  • Will Morrison (56yo)

    Director

    • Tenure: 0yrs
    • Compensation: US$1.52m

Company Information

TowneBank's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TowneBank
  • Ticker: 3T8
  • Exchange: DB
  • Founded: 1998
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$2.014b
  • Listing Market Cap: US$1.808b
  • Shares outstanding: 71.82m
  • Website: https://www.townebank.com

Number of Employees


Location

  • TowneBank
  • 5716 High Street West
  • Portsmouth
  • Virginia
  • 23703
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TOWNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 1999
3T8DB (Deutsche Boerse AG)YesCommon StockDEEURMay 1999

Biography

TowneBank provides retail and commercial banking services for small- and medium-size businesses, professionals, and individuals. The company operates in three segments: Banking, Realty, and Insurance. It a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 21:00
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.