New Risk • Aug 13
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: US$1.4m This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 1.5% per year for the foreseeable future. Minor Risks Shareholders have been diluted in the past year (23% increase in shares outstanding). Significant insider selling over the past 3 months (US$1.4m sold). New Risk • Jul 24
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 1.1% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 1.1% per year for the foreseeable future. Minor Risk Shareholders have been diluted in the past year (23% increase in shares outstanding). Announcement • Jun 30
TowneBank Announces Board Appointments TowneBank announced the appointment of William A. “Billy” Gwaltney, Jr. and John O. Wynne, Jr. to its Corporate Board of Directors. William A. Gwaltney, Jr. is President of Indika Farms Inc., a family run agribusiness enterprise that traces its roots back to the 1800’s and which specializes in farming operations and peanut buying, shelling, processing, and storage. William A. Gwaltney, Jr. was appointed in 2025 by the Governor to the Virginia Department of Agriculture and Consumer Services. His other professional affiliations include serving on the Board of Directors of the Virginia Crop Improvement Association, the Peanut Soil and Water Conservation District, and the Isle of Wight County Farm Bureau. William A. Gwaltney, Jr. served as Chairman of the Board of Directors of Farmers Bank, Windsor, Virginia, and its parent holding company, Farmers Bankshares Inc., which TowneBank acquired in 2023. He currently serves as Chairman of TowneBank’s Regional Board of Directors for Suffolk/Western Tidewater. William A. Gwaltney, Jr. is a graduate of Virginia Tech and resides in Windsor, Virginia. John O. Wynne, Jr. is the founder, former Chief Executive Officer and current Chairman of Fortis Solutions Group, a leading provider of printed packaging solutions servicing customers across the United States and Canada from 22 manufacturing locations. Prior to entering the packaging business in 2010, John O. Wynne, Jr. held various positions within the investment banking units of Deutsche Bank and Morgan Stanley in New York. John O. Wynne, Jr. is Chair of the Hampton Roads Community Foundation and a Board member of the Hampton Roads Executive Roundtable, ivWatch and Norfolk Academy. John O. Wynne, Jr. received his undergraduate degree from Princeton University and his Master of Business Administration from the University of Virginia’s Darden Graduate School of Business. John O. Wynne, Jr. resides in Virginia Beach, Virginia. Upcoming Dividend • Jun 19
Upcoming dividend of US$0.28 per share Eligible shareholders must have bought the stock before 26 June 2026. Payment date: 10 July 2026. Payout ratio is a comfortable 52% and the cash payout ratio is 77%. Trailing yield: 3.1%. Lower than top quartile of American dividend payers (4.3%). Higher than average of industry peers (2.3%). Declared Dividend • May 24
Dividend of US$0.28 announced Shareholders will receive a dividend of US$0.28. Ex-date: 26th June 2026 Payment date: 10th July 2026 Dividend yield will be 5.2%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 8.4% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 25% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • May 22
TowneBank announces Quarterly dividend, payable on July 10, 2026 TowneBank announced Quarterly dividend of USD 0.2800 per share payable on July 10, 2026, ex-date on June 26, 2026 and record date on June 26, 2026. Recent Insider Transactions • May 03
Insider recently bought US$503k worth of stock On the 28th of April, J. Perry bought around 14k shares on-market at roughly US$35.95 per share. This transaction amounted to 83% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$2.5m more in shares than they have sold in the last 12 months. Reported Earnings • Apr 24
First quarter 2026 earnings: EPS in line with expectations, revenues disappoint First quarter 2026 results: EPS: US$0.45 (down from US$0.67 in 1Q 2025). Revenue: US$246.1m (up 30% from 1Q 2025). Net income: US$41.0m (down 19% from 1Q 2025). Profit margin: 17% (down from 27% in 1Q 2025). Revenue missed analyst estimates by 2.5%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 8.3% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Announcement • Apr 24
Townebank Reports Net Charge Offs for the First Quarter Ended March 31, 2026 TowneBank reported net charge offs for the first quarter ended March 31, 2026. For the period, the company reported net loan charge-offs of $1,690,000 compared to $626,000 a year ago. New Risk • Apr 23
New major risk - Revenue and earnings growth Earnings have declined by 5.8% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 5.8% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Shareholders have been diluted in the past year (23% increase in shares outstanding). Announcement • Apr 15
TowneBank, Annual General Meeting, May 20, 2026 TowneBank, Annual General Meeting, May 20, 2026. Location: virginia beach convention center, 1000 19th street, virginia beach, virginia., virginia beach. United States Upcoming Dividend • Mar 24
Upcoming dividend of US$0.27 per share Eligible shareholders must have bought the stock before 31 March 2026. Payment date: 10 April 2026. Payout ratio is a comfortable 48% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of American dividend payers (4.4%). Higher than average of industry peers (2.6%). Reported Earnings • Mar 03
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: US$2.22 (up from US$2.15 in FY 2024). Revenue: US$811.8m (up 17% from FY 2024). Net income: US$169.5m (up 5.1% from FY 2024). Profit margin: 21% (down from 23% in FY 2024). Net interest margin (NIM): 3.42% (up from 2.90% in FY 2024). Cost-to-income ratio: 70.2% (down from 70.8% in FY 2024). Non-performing loans: 0.09% (up from 0.06% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 4.4%. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 9.0% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. New Risk • Mar 03
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 23% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Shareholders have been diluted in the past year (23% increase in shares outstanding). Declared Dividend • Mar 01
Fourth quarter dividend of US$0.27 announced Shareholders will receive a dividend of US$0.27. Ex-date: 31st March 2026 Payment date: 10th April 2026 Dividend yield will be 3.2%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by earnings (48% payout ratio) and is expected to be well covered in 3 years' time (29% forecast payout ratio). The dividend has increased by an average of 8.4% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 62% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Announcement • Feb 25
TowneBank Declares First-Quarter Cash Dividend, Payable on April 10, 2026 TowneBank announced that its Board of Directors declared its first-quarter shareholder cash dividend of $0.27 per common share payable on April 10, 2026, to shareholders of record on March 31, 2026. Announcement • Feb 03
TowneBank Appoints Richard Cullen to its Board of Directors TowneBank announced the appointment of Richard Cullen to its Board of Directors. Mr. Cullen has enjoyed a distinguished legal career with decades of experience in both public service and private practice. Most recently, Mr. Cullen served as Counselor to Governor Glenn Youngkin during his term in office from 2022 to 2026. Other notable public service positions include his appointment in 1997 by Governor George Allen to serve as Attorney General of Virginia and his appointment in 1991 by President George H.W. Bush to serve as United States Attorney for the Eastern District of Virginia. Mr. Cullen spent his career in private law practice at McGuireWoods, LLP, a firm that traces its roots back to 1834 and which has grown to approximately 1,000 lawyers with offices throughout the U.S. and in London. Prior to joining Governor Youngkin’s administration, Mr. Cullen served as Chairman of McGuireWoods for over a decade. In February, Mr. Cullen will become a partner in Torridon Law PLLC, a law firm based in Washington, D.C. Mr. Cullen resides in Richmond, Virginia with his wife, Aggie Tullidge Cullen. They are parents of four adult children, including United States District Court Judge Thomas T. Cullen of Roanoke, Virginia. New Risk • Jan 29
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 21% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. This is currently the only risk that has been identified for the company. Reported Earnings • Jan 29
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: US$2.22 (up from US$2.16 in FY 2024). Revenue: US$811.8m (up 17% from FY 2024). Net income: US$169.5m (up 4.8% from FY 2024). Profit margin: 21% (down from 23% in FY 2024). Net interest margin (NIM): 3.42% (up from 2.90% in FY 2024). Cost-to-income ratio: 63.5% (down from 70.8% in FY 2024). Non-performing loans: 0.09% (up from 0.06% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 4.4%. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 8.9% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Jan 29
TowneBank Reports Net Charge-Offs for the Fourth Quarter Ended December 31, 2025 TowneBank reported Net charge-offs for the fourth quarter ended December 31, 2025. For the quarter, the company reported Net charge-offs of $1,948,000 against $382,000 a year ago. Announcement • Jan 13
TowneBank (NasdaqGS:TOWN) completed the acquisition of Dogwood State Bank (OTCPK:DSBX). TowneBank (NasdaqGS:TOWN) signed a definitive merger agreement to acquire Dogwood State Bank (OTCPK:DSBX) for approximately $500 million on August 18, 2025. Under the terms of the merger agreement, common shareholders of Dogwood will receive a fixed exchange ratio of 0.700 shares of TowneBank common stock for each outstanding share of Dogwood common stock. This implies a deal value per share of $25.04 or approximately $476.2 million. Steve Jones will continue in a key leadership role within the combined company and will join TowneBank as President of its North Carolina and South Carolina banking operations, and be a member of the TowneBank Corporate Management team.
Steven W. Jones, the former chief executive officer of Dogwood, will continue in a key leadership role with the combined company and join TowneBank as President of the Carolinas, serving as a member of the TowneBank Corporate Management Group. Mr. Jones and George (Robin) Perkins, a former director of Dogwood, were appointed to the TowneBank Board of Directors.
The definitive agreement was approved by the boards of directors of TowneBank and Dogwood. The transaction is subject to customary conditions, including regulatory approval, as well as the approval of Dogwood’s shareholders. The transaction is expected to close in the first quarter of 2026. As on January 12, 2026, the transaction has been approved by the TowneBank shareholders and received regulatory approval.
Raymond James & Associates, Inc. served as the financial advisor and Wachtell, Lipton, Rosen & Katz served as legal counsel to TowneBank. Piper Sandler & Co. served as the financial advisor and David F. Paulson, Benjamin A. McCall, Scott H. Richter, Nona K. Massengill, Lee G. Lester, Anna K. Derewenda and J. Conrad Garcia of Williams Mullen served as legal counsel to Dogwood. Mark Kanaly, Stuart Rogers of Alston & Bird, LLP represented Raymond James & Associates, Inc. as financial advisor.
TowneBank (NasdaqGS:TOWN) completed the acquisition of Dogwood State Bank (OTCPK:DSBX) on January 12, 2026. As a part of acquisition Dogwood locations will operate as "Dogwood State Bank, a Division of TowneBank" until November 2026, when the core systems and operations of Dogwood are scheduled to be converted into those of TowneBank. Upcoming Dividend • Dec 19
Upcoming dividend of US$0.27 per share Eligible shareholders must have bought the stock before 26 December 2025. Payment date: 07 January 2026. Payout ratio is a comfortable 46% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of American dividend payers (4.4%). Higher than average of industry peers (2.3%). Declared Dividend • Nov 28
Third quarter dividend of US$0.27 announced Shareholders will receive a dividend of US$0.27. Ex-date: 26th December 2025 Payment date: 7th January 2026 Dividend yield will be 3.2%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by earnings (46% payout ratio) and is expected to be well covered in 3 years' time (30% forecast payout ratio). The dividend has increased by an average of 9.4% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 63% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Announcement • Nov 27
TowneBank Announces Cash Dividend for the Fourth-Quarter of 2025, Payable on January 7, 2026 TowneBank announced that its Board of Directors declared its fourth-quarter of 2025 shareholder cash dividend of $0.27 per common share payable on January 7, 2026, to shareholders of record on December 26, 2025. Recent Insider Transactions • Nov 25
Senior Executive VP & CFO recently bought US$350k worth of stock On the 20th of November, William Littreal bought around 11k shares on-market at roughly US$32.29 per share. This transaction amounted to 20% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. William has been a buyer over the last 12 months, purchasing a net total of US$168k worth in shares. Reported Earnings • Oct 23
Third quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2025 results: EPS: US$0.51 (down from US$0.57 in 3Q 2024). Revenue: US$200.4m (up 14% from 3Q 2024). Net income: US$39.0m (down 9.2% from 3Q 2024). Profit margin: 20% (down from 25% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.3%. Earnings per share (EPS) exceeded analyst estimates by 11%. Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 8.0% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Announcement • Oct 23
TowneBank Reports Unaudited Net Loan Charge-Offs for the Third Quarter Ended September 30, 2025 TowneBank reported unaudited net loan charge-offs for the third quarter ended September 30, 2025. For the quarter, the company reported net loan charge-offs of $254,000 against $677,000 in the prior year quarter. Upcoming Dividend • Sep 22
Upcoming dividend of US$0.27 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 10 October 2025. Payout ratio is a comfortable 44% and the cash payout ratio is 79%. Trailing yield: 3.0%. Lower than top quartile of American dividend payers (4.4%). Higher than average of industry peers (2.4%). Announcement • Sep 03
TowneBank (NasdaqGS:TOWN) completed the acquisition of Old Point Financial Corporation (NasdaqCM:OPOF). TowneBank (NasdaqGS:TOWN) signed a definitive agreement and plan of merger to acquire Old Point Financial Corporation (NasdaqCM:OPOF) for approximately $200 million on April 2, 2025. Under the terms of the agreement, shareholders of Old Point will elect to receive either $41.00 in cash or 1.1400 shares of TowneBank common stock for each share of Old Point outstanding common stock. This corresponds to an aggregate transaction value of approximately $203 million, based on Old Point common stock currently outstanding. Old Point shareholders will have the right to elect cash or stock consideration so long as the total stock consideration issued represents between 50% and 60% of the total consideration paid. In consideration of the transaction, extensive due diligence was performed by the management teams of TowneBank and Old Point. The transaction is expected to close in the second half of 2025 and is subject to customary conditions, authorization for listing on Nasdaq of the shares of TowneBank common stock to be issued in the Merger, HSR act, including regulatory approval, as well as the approval of Old Point’s shareholders. The definitive agreement was approved by the boards of directors of Old Point and TowneBank. A termination fee of $8.2 million will be payable by Old Point in the event that the Merger Agreement is terminated under certain circumstances. On July 2, 2025 Old Point Announces Shareholder Approval for Merger. As on August 14, 2025, the transaction had received regulatory approval from the Federal Deposit Insurance Corporation and the Bureau of Financial Institutions of the Virginia State Corporation Commission and expect to close on or about September 1, 2025, subject to the satisfaction of customary closing conditions.
Piper Sandler & Co. served as the financial advisor and Matthew M. Guest, Richard K. Kim, Ledina Gocaj, Michael J. Schobel, Damian G. Didden, Joshua M. Holmes and Eric M. Feinstein of Wachtell, Lipton, Rosen & Katz served as legal advisor with Williams Mullen as local advisor to TowneBank in the transaction. Keefe, Bruyette & Woods served as the financial advisor as well as provided fairness opinion and Seth A. Winter, Gregory Parisi,Mark Goldsmith and David Kaplan of Troutman Pepper Locke LLP served as legal advisor to Old Point in the transaction. Laurel Hill Advisory Group, LLC acted as information agent to Old Point. Old Point has retained Laurel Hill Advisory Group and will pay Laurel Hill Advisory Group a fee of $7,000 plus reimbursement of certain costs and expenses. Computershare, Inc. acted as transfer agent to Old Point. Old Point agreed to pay KBW a total cash fee equal to 1.50% of the aggregate merger consideration, $500,000 of which became payable to KBW with the rendering of its opinion.
TowneBank (NasdaqGS:TOWN) completed the acquisition of Old Point Financial Corporation (NasdaqCM:OPOF) on September 1, 2025. Declared Dividend • Aug 31
Second quarter dividend of US$0.27 announced Shareholders will receive a dividend of US$0.27. Ex-date: 29th September 2025 Payment date: 10th October 2025 Dividend yield will be 2.8%, which is lower than the industry average of 3.2%. Sustainability & Growth Dividend is well covered by earnings (44% payout ratio) and is expected to be well covered in 3 years' time (28% forecast payout ratio). The dividend has increased by an average of 9.4% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 95% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Aug 28
TowneBank Announces Third-Quarter Cash Dividend, Payable on October 10, 2025 TowneBank announced that its Board of Directors declared its third-quarter shareholder cash dividend of $0.27 per common share payable on October 10, 2025, to shareholders of record on September 29, 2025. Buy Or Sell Opportunity • Aug 19
Now 22% undervalued Over the last 90 days, the stock has risen 2.3% to US$35.40. The fair value is estimated to be US$45.51, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 6.1%. Revenue is forecast to grow by 21% in a year. Earnings are forecast to grow by 32% in the next year. Announcement • Aug 19
TowneBank (NasdaqGS:TOWN) signed a definitive merger agreement to acquire Dogwood State Bank (OTCPK:DSBX) for approximately $500 million. TowneBank (NasdaqGS:TOWN) signed a definitive merger agreement to acquire Dogwood State Bank (OTCPK:DSBX) for approximately $500 million on August 19, 2025. Under the terms of the merger agreement, common shareholders of Dogwood will receive a fixed exchange ratio of 0.700 shares of TowneBank common stock for each outstanding share of Dogwood common stock. This implies a deal value per share of $25.04 or approximately $476.2 million. Steve Jones will continue in a key leadership role within the combined company and will join TowneBank as President of its North Carolina and South Carolina banking operations, and be a member of the TowneBank Corporate Management team. The definitive agreement was approved by the boards of directors of TowneBank and Dogwood. The transaction is subject to customary conditions, including regulatory approval, as well as the approval of Dogwood’s shareholders. The transaction is expected to close in early 2026. Raymond James & Associates, Inc. served as the financial advisor and Wachtell, Lipton, Rosen & Katz served as legal counsel to TowneBank. Piper Sandler & Co. served as the financial advisor and Williams Mullen served as legal counsel to Dogwood. Reported Earnings • Jul 24
Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2025 results: EPS: US$0.52 (down from US$0.57 in 2Q 2024). Revenue: US$201.0m (up 15% from 2Q 2024). Net income: US$38.8m (down 9.4% from 2Q 2024). Profit margin: 19% (down from 25% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) missed analyst estimates by 14%. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 7.5% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Announcement • Jul 24
Townebank Reports Net Loan Charge-Offs for the Second Quarter Ended June 30, 2025 TowneBank reported net loan charge-offs for the second quarter ended June 30, 2025. For the quarter, Net loan charge-offs were $19,000 as compared to Net recoveries of $19,000 in the previous year. Upcoming Dividend • Jun 20
Upcoming dividend of US$0.27 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 11 July 2025. Payout ratio is a comfortable 42% and this is well supported by cash flows. Trailing yield: 3.1%. Lower than top quartile of American dividend payers (4.8%). Higher than average of industry peers (2.7%). New Risk • Jun 06
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: US$410k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. This is currently the only risk that has been identified for the company. Declared Dividend • May 18
First quarter dividend increased to US$0.27 Dividend of US$0.27 is 8.0% higher than last year. Ex-date: 27th June 2025 Payment date: 11th July 2025 Dividend yield will be 2.9%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 8.6% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 23% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • May 15
Townebank Announces Cash Dividend for the Second-Quarter, Payable on July 11, 2025 TowneBank announced that its Board of Directors declared its second-quarter shareholder cash dividend of $0.27 per common share payable on July 11, 2025, to shareholders of record on June 27, 2025. The quarterly common stock cash dividend of $0.27 per common share, or $1.08 per common share on an annual basis, is an 8% increase from the previous dividend rate. Reported Earnings • Apr 24
First quarter 2025 earnings: EPS and revenues exceed analyst expectations First quarter 2025 results: EPS: US$0.67 (up from US$0.46 in 1Q 2024). Revenue: US$189.6m (up 13% from 1Q 2024). Net income: US$50.6m (up 46% from 1Q 2024). Profit margin: 27% (up from 21% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) also surpassed analyst estimates by 9.4%. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 7.1% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Announcement • Apr 24
TowneBank Reports Net Loan Charge-Offs for the First Quarter Ended March 31, 2025 TowneBank reported net loan charge-offs for the first quarter ended March 31, 2025. Net loan charge-offs were $626,000 in the quarter compared to $520,000 in the prior year quarter and $382,000 in the linked quarter. Announcement • Apr 03
TowneBank (NasdaqGS:TOWN) signed a definitive agreement and plan of merger to acquire Old Point Financial Corporation (NasdaqCM:OPOF) for approximately $200 million. TowneBank (NasdaqGS:TOWN) signed a definitive agreement and plan of merger to acquire Old Point Financial Corporation (NasdaqCM:OPOF) for approximately $200 million on April 2, 2025. Under the terms of the agreement, shareholders of Old Point will elect to receive either $41.00 in cash or 1.1400 shares of TowneBank common stock for each share of Old Point outstanding common stock. This corresponds to an aggregate transaction value of approximately $203 million, based on Old Point common stock currently outstanding. Old Point shareholders will have the right to elect cash or stock consideration so long as the total stock consideration issued represents between 50% and 60% of the total consideration paid. In consideration of the transaction, extensive due diligence was performed by the management teams of TowneBank and Old Point. The transaction is expected to close in the second half of 2025 and is subject to customary conditions, including regulatory approval, as well as the approval of Old Point’s shareholders. The definitive agreement was approved by the boards of directors of Old Point and TowneBank.
Piper Sandler & Co. served as the financial advisor and Wachtell, Lipton, Rosen & Katz served as lead legal counsel with Williams Mullen as local counsel to TowneBank in the transaction. Keefe, Bruyette & Woods served as the financial advisor and Troutman Pepper Locke LLP served as legal counsel to Old Point in the transaction. Announcement • Apr 02
TowneBank (NasdaqGS:TOWN) completed the acquisition of Village Bank and Trust Financial Corp. (NasdaqCM:VBFC). TowneBank (NasdaqGS:TOWN) signed a definitive agreement and plan of reorganization to acquire Village Bank and Trust Financial Corp. (NasdaqCM:VBFC) for approximately $120 million on September 23, 2024. On August 21, 2024, TowneBank (NasdaqGS:TOWN) and Village Bank and Trust Financial Corp. (NasdaqCM:VBFC) executed a letter of intent. Under the terms of the agreement, shareholders of Village will receive $80.25 per share in cash for each share of Village outstanding common stock. This corresponds to an aggregate transaction value of approximately $120.0 million, based on Village common stock currently outstanding. The separate corporate existence of Village Bank thereupon shall cease, and Towne shall be the surviving corporation in the Merger. If the agreement is terminated by Village Bank, it is required to pay Towne the sum of $4.8 million termination fee.
The transaction is expected to close in the first half of 2025 and is subject to customary conditions, including regulatory approval, as well as the approval of Village’s shareholders. The boards of directors of each of TowneBank, Towne Merger Sub, Village and Village Bank have unanimously approved the Agreement. TowneBank expects the transaction to be approximately 6% accretive to earnings per share with fully phased-in cost savings on a GAAP basis. As of December 19, 2024, the Village Bank and Trust Financial shareholders approved the transaction. As of March 11, 2025, Federal Deposit Insurance Corporation and the Virginia State Corporation Commission have approved the transaction. In addition to the parties receiving all required regulatory approvals. The merger is expected to be completed at the beginning of April 2025.
Piper Sandler & Co. served as the financial advisor and Gregory F. Parisi and Seth A. Winter of Troutman Pepper Hamilton Sanders LLP served as legal counsel to TowneBank in the transaction. Janney Montgomery Scott served as the financial advisor and fairness opinion provider; and Benjamin A. McCall and Scott H. Richter of Williams Mullen served as legal counsel to Village in the transaction. Computershare, Inc. acted as transfer agent to TowneBank.
TowneBank (NasdaqGS:TOWN) completed the acquisition of Village Bank and Trust Financial Corp. (NasdaqCM:VBFC) on April 1, 2025. In connection with the merger, Frank E. Jenkins, Jr., a former director of Village, was appointed to the TowneBank board of directors, effective as of April 1, 2025. Upcoming Dividend • Mar 24
Upcoming dividend of US$0.25 per share Eligible shareholders must have bought the stock before 31 March 2025. Payment date: 11 April 2025. Payout ratio is a comfortable 46% and the cash payout ratio is 92%. Trailing yield: 2.9%. Lower than top quartile of American dividend payers (4.7%). In line with average of industry peers (2.7%). Reported Earnings • Mar 04
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: US$2.16 (up from US$2.06 in FY 2023). Revenue: US$694.3m (up 2.8% from FY 2023). Net income: US$161.8m (up 5.2% from FY 2023). Profit margin: 23% (in line with FY 2023). Net interest margin (NIM): 2.90% (down from 3.06% in FY 2023). Cost-to-income ratio: 70.8% (up from 69.4% in FY 2023). Non-performing loans: 0.06% (no change from 0.06% in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 3.1%. Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 7.2% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Declared Dividend • Mar 02
Fourth quarter dividend of US$0.25 announced Dividend of US$0.25 is the same as last year. Ex-date: 31st March 2025 Payment date: 11th April 2025 Dividend yield will be 2.7%, which is lower than the industry average of 3.2%. Sustainability & Growth Dividend is well covered by earnings (46% payout ratio) and is expected to be well covered in 3 years' time (34% forecast payout ratio). The dividend has increased by an average of 8.6% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 45% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Announcement • Feb 27
TowneBank Announces Cash Dividend for the First-Quarter, Payable on April 11, 2025 Hampton Roads based TowneBank announced that its Board of Directors declared its first-quarter shareholder cash dividend of $0.25 per common share payable on April 11, 2025, to shareholders of record on March 31, 2025. Buy Or Sell Opportunity • Feb 21
Now 21% undervalued The stock has been flat over the last 90 days, currently trading at US$36.20. The fair value is estimated to be US$45.61, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 12%. Revenue is forecast to grow by 26% in 2 years. Earnings are forecast to grow by 51% in the next 2 years. Price Target Changed • Jan 28
Price target increased by 7.2% to US$40.75 Up from US$38.00, the current price target is an average from 4 analysts. New target price is 13% above last closing price of US$36.09. Stock is up 22% over the past year. The company is forecast to post earnings per share of US$2.61 for next year compared to US$2.16 last year. Reported Earnings • Jan 23
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: US$2.16 (up from US$2.06 in FY 2023). Revenue: US$694.3m (up 2.8% from FY 2023). Net income: US$161.8m (up 5.2% from FY 2023). Profit margin: 23% (in line with FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 3.1%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 7.2% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Jan 23
TowneBank, Annual General Meeting, May 14, 2025 TowneBank, Annual General Meeting, May 14, 2025. Location: virginia beach convention center, 1000 19th street in virginia beach, virginia United States Upcoming Dividend • Dec 24
Upcoming dividend of US$0.25 per share Eligible shareholders must have bought the stock before 31 December 2024. Payment date: 14 January 2025. Payout ratio is a comfortable 50% but the company is paying out more than the cash it is generating. Trailing yield: 2.9%. Lower than top quartile of American dividend payers (4.5%). In line with average of industry peers (2.7%). Declared Dividend • Dec 02
Third quarter dividend of US$0.25 announced Dividend of US$0.25 is the same as last year. Ex-date: 31st December 2024 Payment date: 14th January 2025 Dividend yield will be 2.7%, which is lower than the industry average of 3.2%. Sustainability & Growth Dividend is covered by earnings (50% payout ratio) and is expected to be covered in 3 years' time (35% forecast payout ratio). The dividend has increased by an average of 9.6% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 49% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Announcement • Nov 28
TowneBank Declares Fourth-Quarter Cash Dividend, Payable on January 14, 2025 TowneBank announced that its Board of Directors declared its fourth-quarter shareholder cash dividend of $0.25 per common share payable on January 14, 2025, to shareholders of record on December 31, 2024. Recent Insider Transactions • Nov 10
Insider recently sold US$425k worth of stock On the 6th of November, Jacqueline Amato sold around 12k shares on-market at roughly US$35.40 per share. This transaction amounted to 10% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$1.1m more than they bought in the last 12 months. Announcement • Oct 26
TowneBank Reports Net Charge Off for the Third Quarter Ended September 30, 2024 TowneBank reported net charge off for the third quarter ended September 30, 2024. Net loan charge-offs were $0.68 million in the quarter compared to net recoveries of $1.07 million in the prior year quarter. Reported Earnings • Oct 24
Third quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2024 results: EPS: US$0.57 (down from US$0.60 in 3Q 2023). Revenue: US$175.6m (up 2.2% from 3Q 2023). Net income: US$42.9m (down 4.3% from 3Q 2023). Profit margin: 25% (down from 26% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 3.2%. Earnings per share (EPS) exceeded analyst estimates by 1.8%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Oct 18
Now 20% undervalued Over the last 90 days, the stock has risen 12% to US$34.89. The fair value is estimated to be US$43.85, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 14%. Revenue is forecast to grow by 28% in 2 years. Earnings are forecast to grow by 51% in the next 2 years. Announcement • Sep 26
TowneBank (NasdaqGS:TOWN) signed a definitive agreement and plan of reorganization to acquire Village Bank and Trust Financial Corp. (NasdaqCM:VBFC) for approximately $120 million. TowneBank (NasdaqGS:TOWN) signed a definitive agreement and plan of reorganization to acquire Village Bank and Trust Financial Corp. (NasdaqCM:VBFC) for approximately $120 million on September 23, 2024. Under the terms of the agreement, shareholders of Village will receive $80.25 per share in cash for each share of Village outstanding common stock. This corresponds to an aggregate transaction value of approximately $120.0 million, based on Village common stock currently outstanding. The separate corporate existence of Village Bank thereupon shall cease, and Towne shall be the surviving corporation in the Merger. If the agreement is terminated by Village Bank, it is required to pay Towne the sum of $4.8 million termination fee.
The transaction is expected to close in the first half of 2025 and is subject to customary conditions, including regulatory approval, as well as the approval of Village’s shareholders. The boards of directors of each of TowneBank, Towne Merger Sub, Village and Village Bank have unanimously approved the Agreement. TowneBank expects the transaction to be approximately 6% accretive to earnings per share with fully phased-in cost savings on a GAAP basis.
Piper Sandler & Co. served as the financial advisor and Gregory F. Parisi and Seth A. Winter of Troutman Pepper Hamilton Sanders LLP served as legal counsel to TowneBank in the transaction. Janney Montgomery Scott served as the financial advisor and fairness opinion provider; and Benjamin A. McCall and Scott H. Richter of Williams Mullen served as legal counsel to Village in the transaction. Upcoming Dividend • Sep 23
Upcoming dividend of US$0.25 per share Eligible shareholders must have bought the stock before 30 September 2024. Payment date: 11 October 2024. Payout ratio is a comfortable 49% and this is well supported by cash flows. Trailing yield: 2.9%. Lower than top quartile of American dividend payers (4.3%). In line with average of industry peers (2.9%). Declared Dividend • Aug 30
Second quarter dividend of US$0.25 announced Dividend of US$0.25 is the same as last year. Ex-date: 30th September 2024 Payment date: 11th October 2024 Dividend yield will be 2.9%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 9.6% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 16% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • Aug 29
Townebank Announces Quarterly Cash Dividend, Payable on October 11, 2024 TowneBankannounced that its Board of Directors declared its third-quarter shareholder cash dividend of $0.25 per common share payable on October 11, 2024, to shareholders of record on September 30, 2024. Recent Insider Transactions • Aug 01
Insider recently sold US$305k worth of stock On the 29th of July, J. Davis sold around 9k shares on-market at roughly US$33.58 per share. This transaction amounted to 22% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$478k more than they bought in the last 12 months. Price Target Changed • Jul 30
Price target increased by 12% to US$34.50 Up from US$30.75, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of US$33.42. Stock is up 33% over the past year. The company is forecast to post earnings per share of US$2.13 for next year compared to US$2.06 last year. Reported Earnings • Jul 25
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: US$0.57 (up from US$0.56 in 2Q 2023). Revenue: US$175.1m (down 1.6% from 2Q 2023). Net income: US$42.9m (up 2.7% from 2Q 2023). Profit margin: 25% (up from 23% in 2Q 2023). The increase in margin was driven by lower expenses. Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) also surpassed analyst estimates by 19%. Revenue is forecast to grow 9.8% p.a. on average during the next 2 years, compared to a 6.3% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jul 16
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to US$31.27, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 12x in the Banks industry in the US. Total returns to shareholders of 16% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$43.33 per share. New Risk • Jun 07
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: US$295k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. This is currently the only risk that has been identified for the company. Declared Dividend • Jun 02
First quarter dividend of US$0.25 announced Dividend of US$0.25 is the same as last year. Ex-date: 28th June 2024 Payment date: 12th July 2024 Dividend yield will be 3.7%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 9.6% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 13% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • May 31
TowneBank Announces Second-Quarter Cash Dividend, Payable on July 12, 2024 TowneBank announced that its Board of Directors declared its second-quarter shareholder cash dividend of $0.25 per common share payable on July 12, 2024, to shareholders of record on June 28, 2024. Recent Insider Transactions • May 16
Insider recently sold US$235k worth of stock On the 14th of May, J. Davis sold around 9k shares on-market at roughly US$27.49 per share. This transaction amounted to 17% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth US$453k. Insiders have been net sellers, collectively disposing of US$289k more than they bought in the last 12 months. Reported Earnings • Apr 25
First quarter 2024 earnings: EPS and revenues miss analyst expectations First quarter 2024 results: EPS: US$0.46 (down from US$0.52 in 1Q 2023). Revenue: US$168.0m (down 2.6% from 1Q 2023). Net income: US$34.7m (down 9.5% from 1Q 2023). Profit margin: 21% (down from 22% in 1Q 2023). Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates by 3.8%. Revenue is forecast to grow 8.2% p.a. on average during the next 2 years, compared to a 5.9% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Apr 10
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 8.5% to US$26.34. The fair value is estimated to be US$32.97, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 5.0%. Revenue is forecast to grow by 14% in 2 years. Earnings are forecast to grow by 22% in the next 2 years. Announcement • Mar 28
Townebank Announces Retirement of Jacqueline B. Amato and Bradford L. Cherry as Members of Board of Directors TowneBank announced that two long-serving members of its Board of Directors, Jacqueline B. Amato and Bradford L. Cherry, will step down from the Board and move to Emeritus status following the 2024 Annual Meeting of Shareholders. Cherry is a founding director of TowneBank, having served as a director since TowneBank’s opening in 1999. Amato joined TowneBank in 2000 to lead its successful entry into the residential mortgage lending business and was appointed to the Board that same year. Upcoming Dividend • Mar 20
Upcoming dividend of US$0.25 per share Eligible shareholders must have bought the stock before 27 March 2024. Payment date: 12 April 2024. Payout ratio is a comfortable 48% and this is well supported by cash flows. Trailing yield: 3.7%. Lower than top quartile of American dividend payers (4.7%). Higher than average of industry peers (3.0%). Buy Or Sell Opportunity • Mar 14
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 13% to US$25.95. The fair value is estimated to be US$32.65, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 5.0%. Revenue is forecast to grow by 14% in 2 years. Earnings are forecast to grow by 21% in the next 2 years. Recent Insider Transactions • Mar 12
Independent Director recently sold US$453k worth of stock On the 7th of March, Elizabeth Robertson sold around 16k shares on-market at roughly US$27.63 per share. This transaction amounted to 21% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$661k more than they bought in the last 12 months. Announcement • Mar 12
TowneBank, Annual General Meeting, May 22, 2024 TowneBank, Annual General Meeting, May 22, 2024, at 11:30 US Eastern Standard Time. Location: Virginia Beach Convention Center 1000 19th Street Virginia Beach, Virginia Virginia United States Announcement • Mar 06
TowneBank Appoints Sachin Shetty to the Board of Directors TowneBank has appointed Sachin Shetty, Ph.D., to its Board of Directors. Dr. Shetty is an Executive Director for the Center for Secure and Intelligent Critical Systems and Professor with the Electrical and Computer Engineering Department at Old Dominion University, where he leads a research team focused on developing and integrating secure and intelligent technologies designed to ensure safe, reliable, and resilient critical infrastructure. Dr. Shetty, whose research interests lie at the intersection of computer networking, network security and machine learning, has published over 300 research articles. Dr. Shetty received his Ph.D. in Modeling and Simulation from ODU, his Master of Science in Computer Science from the University of Toledo, and a Bachelor’s degree in Computer Engineering from Mumbai University. Reported Earnings • Mar 04
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: US$2.06 (down from US$2.61 in FY 2022). Revenue: US$675.4m (flat on FY 2022). Net income: US$153.7m (down 19% from FY 2022). Profit margin: 23% (down from 28% in FY 2022). Net interest margin (NIM): 3.06% (down from 3.10% in FY 2022). Cost-to-income ratio: 69.4% (up from 62.7% in FY 2022). Non-performing loans: 0.06% (no change from 0.06% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.8%. Revenue is forecast to grow 6.6% p.a. on average during the next 2 years, compared to a 5.8% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 5% per year and the company’s share price has also fallen by 5% per year. Declared Dividend • Mar 03
Fourth quarter dividend of US$0.25 announced Shareholders will receive a dividend of US$0.25. Ex-date: 27th March 2024 Payment date: 12th April 2024 Dividend yield will be 3.7%, which is higher than the industry average of 3.2%. Sustainability & Growth Dividend is well covered by earnings (48% payout ratio) and is expected to be well covered in 3 years' time (42% forecast payout ratio). The dividend has increased by an average of 11% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 20% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Announcement • Feb 29
TowneBank Declares First-Quarter Cash Dividend, Payable on April 12, 2024 TowneBank announced that its Board of Directors declared its first-quarter shareholder cash dividend of $0.25 per common share payable on April 12, 2024, to shareholders of record on March 29, 2024. Reported Earnings • Jan 26
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: US$2.06 (down from US$2.61 in FY 2022). Revenue: US$675.4m (flat on FY 2022). Net income: US$153.7m (down 19% from FY 2022). Profit margin: 23% (down from 28% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.8%. Revenue is forecast to grow 5.4% p.a. on average during the next 2 years, compared to a 5.4% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Price Target Changed • Dec 28
Price target increased by 8.8% to US$29.80 Up from US$27.40, the current price target is an average from 5 analysts. New target price is approximately in line with last closing price of US$30.40. Stock is down 1.7% over the past year. The company is forecast to post earnings per share of US$2.12 for next year compared to US$2.60 last year. Upcoming Dividend • Dec 21
Upcoming dividend of US$0.25 per share at 3.3% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 12 January 2024. Payout ratio is a comfortable 41% and this is well supported by cash flows. Trailing yield: 3.3%. Lower than top quartile of American dividend payers (4.6%). In line with average of industry peers (3.2%). Recent Insider Transactions • Dec 18
Insider recently sold US$298k worth of stock On the 14th of December, J. Davis sold around 10k shares on-market at roughly US$29.82 per share. This transaction amounted to 17% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$807k more than they bought in the last 12 months. Announcement • Nov 29
TowneBank Announces Quarterly Cash Dividend, Payable on January 12, 2024 TowneBank announced that its Board of Directors declared its fourth-quarter shareholder cash dividend of $0.25 per common share payable on January 12, 2024, to shareholders of record on December 29, 2023. New Risk • Nov 06
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: US$298k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Minor Risks Shareholders have been diluted in the past year (2.7% increase in shares outstanding). Significant insider selling over the past 3 months (US$298k sold).