TowneBank
Market Cap
US$1.3b
Last Updated
2020/07/05 23:53 UTC
Data Sources
Company Financials +
Executive Summary
TowneBank provides retail and commercial banking services for individuals, professionals, and commercial enterprises.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -14.3% per year for the next 3 years
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
1.0%
TOWN
0.8%
US Banks
4.0%
US Market
1 Year Return
-34.9%
TOWN
-28.2%
US Banks
5.0%
US Market
Return vs Industry: TOWN underperformed the US Banks industry which returned -28.2% over the past year.
Return vs Market: TOWN underperformed the US Market which returned 4.9% over the past year.
Shareholder returns
| TOWN | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.0% | 0.8% | 4.0% |
| 30 Day | -15.0% | -16.5% | -1.1% |
| 90 Day | -1.5% | 7.2% | 21.1% |
| 1 Year | -32.7%-34.9% | -25.7%-28.2% | 7.2%5.0% |
| 3 Year | -38.1%-42.7% | -18.1%-24.7% | 36.0%27.1% |
| 5 Year | 19.0%5.6% | 8.8%-4.4% | 65.3%46.9% |
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
3 weeks ago | Simply Wall St
How Much Are TowneBank (NASDAQ:TOWN) Insiders Taking Off The Table?1 month ago | Simply Wall St
Does TowneBank (NASDAQ:TOWN) Have A High Beta?2 months ago | Simply Wall St
If You Had Bought TowneBank (NASDAQ:TOWN) Stock Three Years Ago, You'd Be Sitting On A 38% Loss, TodayValuation
Is TowneBank undervalued compared to its fair value and its price relative to the market?
9.66x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TOWN ($17.92) is trading above our estimate of fair value ($16.98)
Significantly Below Fair Value: TOWN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TOWN is poor value based on its PE Ratio (9.7x) compared to the Banks industry average (9.4x).
PE vs Market: TOWN is good value based on its PE Ratio (9.7x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: TOWN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: TOWN is good value based on its PB Ratio (0.8x) compared to the US 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 3 analysts?
-14.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TOWN's earnings are forecast to decline over the next 3 years (-14.3% per year).
Earnings vs Market: TOWN's earnings are forecast to decline over the next 3 years (-14.3% per year).
High Growth Earnings: TOWN's earnings are forecast to decline over the next 3 years.
Revenue vs Market: TOWN's revenue is expected to decline over the next 3 years (-0.8% per year).
High Growth Revenue: TOWN's revenue is forecast to decline over the next 3 years (-0.8% 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 (4%).
Next Steps
Past Performance
How has TowneBank performed over the past 5 years?
22.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TOWN has high quality earnings.
Growing Profit Margin: TOWN's current net profit margins (24.2%) are lower than last year (26.4%).
Past Earnings Growth Analysis
Earnings Trend: TOWN's earnings have grown significantly by 22.9% per year over the past 5 years.
Accelerating Growth: TOWN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TOWN had negative earnings growth (-4.8%) over the past year, making it difficult to compare to the Banks industry average (1.8%).
Return on Equity
High ROE: TOWN's Return on Equity (8.4%) is considered low.
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
Financial Institutions Analysis
Asset Level: TOWN's Assets to Equity ratio (7.6x) is low.
Allowance for Bad Loans: TOWN has a sufficient allowance for bad loans (385%).
Low Risk Liabilities: 85% of TOWN's liabilities are made up of primarily low risk sources of funding.
Loan Level: TOWN has an appropriate level of Loans to Assets ratio (69%).
Low Risk Deposits: TOWN's Loans to Deposits ratio (94%) is appropriate.
Level of Bad Loans: TOWN has an appropriate level of bad loans (0.2%).
Next Steps
Dividend
What is TowneBank current dividend yield, its reliability and sustainability?
4.02%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TOWN's dividend (4.02%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: TOWN's dividend (4.02%) is low compared to the top 25% of dividend payers in the US market (4.5%).
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 (38.8%), 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 covered by earnings (66.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
J. Davis (69yo)
2.33yrs
Tenure
US$2,322,248
Compensation
Mr. J. Morgan Davis has been Chief Executive Officer, President TowneBank since March 2018 and he was Chief Banking Officer at TowneBank since March 2018. Mr. Davis served as the President and Chief Bankin ...
CEO Compensation Analysis
Compensation vs Market: J.'s total compensation ($USD2.32M) is below average for companies of similar size in the US market ($USD4.70M).
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 | 22.5yrs | US$3.39m | 0.59% $7.7m | |
| President | 2.33yrs | US$2.32m | 0.20% $2.5m | |
| Senior EVP | 2.33yrs | US$1.10m | 0.024% $306.6k | |
| Senior EVP | 4.08yrs | US$1.35m | 0.13% $1.7m | |
| President of Commercial & Real Estate Banking and Director | 15.17yrs | US$1.59m | 0.024% $308.9k | |
| Senior EVP & Chief Accounting Officer | 2.17yrs | no data | 0.010% $134.6k | |
| Chief Legal Officer & Senior EVP of Virginia Business | 3.75yrs | no data | 0.027% $348.5k | |
| Executive VP and Director of Marketing & Member Experience | 1.5yrs | no data | no data | |
| Senior EVP & Chief Human Resources Officer | 1.5yrs | no data | no data | |
| Senior Executive Vice President of Risk Management | 21.5yrs | no data | no data |
2.3yrs
Average Tenure
64yo
Average Age
Experienced Management: TOWN's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 22.5yrs | US$3.39m | 0.59% $7.7m | |
| President | 2.33yrs | US$2.32m | 0.20% $2.5m | |
| Senior EVP | 4.08yrs | US$1.35m | 0.13% $1.7m | |
| President of Commercial & Real Estate Banking and Director | 15.17yrs | US$1.59m | 0.024% $308.9k | |
| Chairman of TowneBank Peninsula | no data | US$53.21k | 0.28% $3.7m | |
| Independent Director | 16.33yrs | US$47.10k | 0.14% $1.9m | |
| Vice Chairman of the Board | 4.08yrs | US$57.33k | 0.16% $2.1m | |
| Independent Director | 21.5yrs | US$52.95k | 0.080% $1.0m | |
| Independent Vice Chairman of the Board | no data | US$59.35k | 0.082% $1.1m | |
| Independent Lead Director | 3.42yrs | US$67.55k | 0.11% $1.4m |
15.8yrs
Average Tenure
71.5yo
Average Age
Experienced Board: TOWN's board of directors are seasoned and experienced ( 15.8 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$1.301b
- Shares outstanding: 72.62m
- Website: https://www.townebank.com
Number of Employees
Location
- TowneBank
- 5716 High Street
- 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 individuals, professionals, and commercial enterprises. 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. 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, treasury management services, direct deposit of payroll and social security checks, and automatic drafts for various accounts, as well as online, 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 health, dental, vision, and disability insurance. It operates 42 banking offices in Virginia and North Carolina. TowneBank was founded in 1998 and is headquartered in Portsmouth, Virginia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/05 23:53 |
| End of Day Share Price | 2020/07/02 00:00 |
| Earnings | 2020/03/31 |
| 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.