TowneBank
Market Cap
US$2.0b
Last Updated
2020/02/16 23:53 UTC
Data Sources
Company Financials +
Executive Summary
TowneBank provides retail and commercial banking services for small- and medium-size businesses, professionals, and individuals.
Rewards
Risk Analysis
No risks detected for TOWN from our risk checks.
Snowflake Analysis
Flawless balance sheet established dividend payer.
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
Stable Share Price: TOWN has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.07%
TOWN
0.5%
US Banks
1.5%
US Market
1 Year Return
-0.9%
TOWN
12.1%
US Banks
20.1%
US Market
Return vs Industry: TOWN underperformed the US Banks industry which returned 12.1% over the past year.
Return vs Market: TOWN underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| TOWN | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.07% | 0.5% | 1.5% |
| 30 Day | -1.9% | -1.3% | 1.4% |
| 90 Day | -0.9% | 1.2% | 8.7% |
| 1 Year | 1.7%-0.9% | 15.4%12.1% | 22.7%20.1% |
| 3 Year | -11.1%-16.8% | 25.2%16.2% | 50.1%40.5% |
| 5 Year | 97.2%76.0% | 75.9%55.9% | 73.1%54.1% |
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
6 days ago | Simply Wall St
This Insider Has Just Sold Shares In TowneBank (NASDAQ:TOWN)3 weeks ago | Simply Wall St
TowneBank Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For Next Year3 weeks ago | Simply Wall St
What You Must Know About TowneBank's (NASDAQ:TOWN) Beta ValueValuation
Is TowneBank undervalued compared to its fair value and its price relative to the market?
14.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TOWN ($27.51) is trading below our estimate of fair value ($32.26)
Significantly Below Fair Value: TOWN is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: TOWN is poor value based on its PE Ratio (14.3x) compared to the Banks industry average (12.6x).
PE vs Market: TOWN is good value based on its PE Ratio (14.3x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: TOWN is poor value based on its PEG Ratio (10x)
Price to Book Ratio
PB vs Industry: TOWN is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).
Next Steps
Future Growth
How is TowneBank forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
1.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TOWN's forecast earnings growth (1.4% per year) is below the savings rate (1.7%).
Earnings vs Market: TOWN's earnings (1.4% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: TOWN's earnings are forecast to grow, but not significantly.
Revenue vs Market: TOWN's revenue (3% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: TOWN's revenue (3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TOWN's Return on Equity is forecast to be low in 3 years time (8%).
Next Steps
Past Performance
How has TowneBank performed over the past 5 years?
24.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TOWN has high quality earnings.
Growing Profit Margin: TOWN's current net profit margins (25%) are lower than last year (25.5%).
Past Earnings Growth Analysis
Earnings Trend: TOWN's earnings have grown significantly by 24.3% per year over the past 5 years.
Accelerating Growth: TOWN's earnings growth over the past year (3.7%) is below its 5-year average (24.3% per year).
Earnings vs Industry: TOWN earnings growth over the past year (3.7%) underperformed the Banks industry 12.1%.
Return on Equity
High ROE: TOWN's Return on Equity (8.7%) is considered low.
Return on Assets
Return on Capital Employed
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: TOWN has a low level of unsold assets or inventory.
Debt Coverage by Assets: TOWN's debt is covered by short term assets (assets are 1.2x debt).
Financial Institutions Analysis
Asset Level: TOWN's level of assets compared to its equity is low.
Allowance for Bad Loans: TOWN has a sufficient allowance for bad loans.
Low Risk Liabilities: TOWN's liabilities are made up of primarily low risk sources of funding.
Loan Level: TOWN has an acceptable proportion of non-loan assets held.
Low Risk Deposits: TOWN's loans are broadly funded by customer deposits.
Level of Bad Loans: TOWN has an appropriate level of bad loans (0.21%)
Next Steps
Dividend
What is TowneBank's current dividend yield, its reliability and sustainability?
2.62%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: TOWN's dividend (2.62%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: TOWN's dividend (2.62%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: TOWN's dividends per share have been stable in the past 10 years.
Growing Dividend: TOWN's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (36.3%), TOWN's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TOWN's dividends in 3 years are forecast to be well covered by earnings (39.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.9yrs
Average management tenure
CEO
J. Davis (68yo)
1.9yrs
Tenure
US$2,090,269
Compensation
Mr. J. Morgan Davis has been Chief Executive Officer, President TowneBank since March 2018.And he was Chief Banking Officer at TowneBank since March 2018. Mr. Davis served as the President and Chief Bankin ...
CEO Compensation Analysis
Compensation vs Market: J.'s total compensation ($USD2.09M) is below average for companies of similar size in the US market ($USD3.76M).
Compensation vs Earnings: J.'s compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 22.1yrs | US$2.35m | 0.60% $11.9m | |
| President | 1.9yrs | US$2.09m | 0.20% $4.0m | |
| Senior EVP | 1.9yrs | US$1.19m | 0.089% $1.8m | |
| Senior EVP | 3.7yrs | US$1.19m | 0.14% $2.8m | |
| Senior EVP & Chief Accounting Officer | 1.8yrs | no data | 0.011% $218.6k | |
| Chief Legal Officer & Senior EVP of Virginia Business | 3.3yrs | no data | 0.029% $570.7k | |
| Executive VP and Director of Marketing & Member Experience | 1.1yrs | no data | no data | |
| Senior EVP & Chief Human Resources Officer | 1.1yrs | no data | no data | |
| Senior Executive Vice President of Risk Management | 21.1yrs | no data | no data | |
| Senior VP & Director of Corporate Sales | 0yrs | no data | no data |
1.9yrs
Average Tenure
63yo
Average Age
Experienced Management: TOWN's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 22.1yrs | US$2.35m | 0.60% $11.9m | |
| President | 1.9yrs | US$2.09m | 0.20% $4.0m | |
| Senior EVP | 3.7yrs | US$1.19m | 0.14% $2.8m | |
| President of Commercial and Real Estate Banking & Director | 14.8yrs | no data | 0.026% $505.9k | |
| Chairman of TowneBank Peninsula | 0yrs | US$53.21k | 0.28% $5.6m | |
| Vice Chairman of the Board | 3.7yrs | US$53.38k | 0.16% $3.1m | |
| Independent Director | 21.1yrs | US$48.73k | 0.12% $2.3m | |
| Vice Chairman of the Board | 0yrs | US$54.58k | 0.078% $1.5m | |
| Director | 0yrs | US$3.62m | 0.18% $3.6m | |
| Lead Director | 3yrs | US$62.68k | 0.10% $2.0m |
14.8yrs
Average Tenure
71yo
Average Age
Experienced Board: TOWN's board of directors are seasoned and experienced ( 14.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TOWN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
TowneBank's company bio, employee growth, exchange listings and data sources
Key Information
- Name: TowneBank
- Ticker: TOWN
- Exchange: NasdaqGS
- Founded: 1998
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$1.976b
- Shares outstanding: 71.83m
- Website: https://www.townebank.com
Number of Employees
Location
- TowneBank
- 5716 High Street West
- Portsmouth
- Virginia
- 23703
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TOWN | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | May 1999 |
| 3T8 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | May 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 accepts various deposits products, including demand deposits, savings accounts, money rate savings, certificates of deposit, and individual retirement accounts, and negotiable order of withdrawal accounts. The company also offers secured and unsecured personal loans for financing automobiles, home improvements, education, and personal investments; commercial loans for working capital, business expansion, and equipment and machinery purchases; and mortgage loans, as well as real estate acquisition, development, and construction loans. In addition, it provides other services, such as safe deposit boxes, cash management services, direct deposit of payroll and social security checks, and automatic drafts for various accounts, as well as Internet, mobile, and on-call banking services. Further, the company offers documentation services to accomplish tax deferral to investors; investment and asset management services; commercial mortgage brokerage services; and other financial services, such as financial, retirement, and estate planning services, as well as assistance on various investment options, such as alternative investments, annuities, margin accounts, convertible bonds, and pension and profit sharing plans. Additionally, it provides residential real estate, relocation, property management, vacations rental, and title and settlement services; and originates residential mortgage loans. The company offers life, property, casualty, travel, and vehicle insurance services; medical, and baggage protection insurance for travelers; and employee benefit programs, such as medical, dental, vision, and disability insurance. As of February 27, 2019, it operated 41 banking offices in Virginia and North Carolina. TowneBank was founded in 1998 and is based in Portsmouth, Virginia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:53 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.