NasdaqGS:TOWN

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

-1.5%

NasdaqGS:TOWN

-1.8%

US Banks

0.2%

US Market


1 Year Return

-19.5%

NasdaqGS:TOWN

-15.3%

US Banks

-0.7%

US Market

TOWN underperformed the Banks industry which returned -13.6% over the past year.

TOWN underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

TOWNIndustryMarket
7 Day-1.5%-1.8%0.2%
30 Day-2.9%-6.4%-2.7%
90 Day2.0%-4.0%1.6%
1 Year-17.5%-19.5%-12.9%-15.3%1.6%-0.7%
3 Year20.4%13.2%41.3%31.7%40.0%30.9%
5 Year101.4%79.4%50.8%34.5%53.8%36.8%

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

Valuation

Is TowneBank undervalued based on future cash flows and its price relative to the stock market?

13.61x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

TowneBank's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

TowneBank's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

TowneBank is overvalued based on earnings compared to the US Banks industry average.

TowneBank is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

TowneBank is poor value based on expected growth next year.


Price Based on Value of Assets

TowneBank is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is TowneBank expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

TowneBank's revenue is expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).

TowneBank's earnings are expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).

TowneBank's revenue growth is positive but not above the United States of America market average.

TowneBank's earnings growth is positive but not above the United States of America market average.

TowneBank's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if TowneBank will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

TowneBank has delivered over 20% year on year earnings growth in the past 5 years.

TowneBank's 1-year earnings growth exceeds its 5-year average (41.8% vs 25%)

TowneBank's earnings growth has exceeded the US Banks industry average in the past year (41.8% vs 33.2%).


Return on Equity

TowneBank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

TowneBank used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if TowneBank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

TowneBank has an acceptable proportion of non-loan assets held.

TowneBank has a sufficient allowance for bad loans.

TowneBank's liabilities are made up of primarily low risk sources of funding.

TowneBank's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at TowneBank are broadly funded by customer deposits.

TowneBank has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

2.61%

Expected Dividend Yield


Dividend Yield and Payments Analysis

TowneBank's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

TowneBank's dividend is below the markets top 25% of dividend payers in United States of America (3.83%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

J. Davis (68yo)

1.4yrs

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

J.'s remuneration is lower than average for companies of similar size in United States of America.

J.'s compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.8yrs

Average Tenure

63yo

Average Age

The tenure for the TowneBank management team is about average.


Board Age and Tenure

17.4yrs

Average Tenure

68.5yo

Average Age

The average tenure for the TowneBank board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

TowneBank individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$16,31014 Aug 19
William Foster
EntityIndividual
Role
Member of the Board of Directors
President of Commercial and Real Estate Banking & Director
Shares615
Max PriceUS$26.52
SellUS$20,24930 Jul 19
Andrew Fine
EntityIndividual
Shares735
Max PriceUS$27.55
SellUS$82,00530 Jul 19
Brad Schwartz
EntityIndividual
Role
Member of the Board of Directors
Senior EVP
Shares2,953
Max PriceUS$27.77
SellUS$17,20419 Jun 19
Kevin Fly
EntityIndividual
Role
Chief Accounting Officer
Senior EVP & Chief Accounting Officer
Shares624
Max PriceUS$27.57
SellUS$37,44028 May 19
Richard Bray
EntityIndividual
Shares1,440
Max PriceUS$26.00
SellUS$30,02401 May 19
Andrew Fine
EntityIndividual
Shares1,136
Max PriceUS$26.43
BuyUS$52201 May 19
Una Oliver
EntityIndividual
Role
Head of Marketing
Senior EVP
Shares20
Max PriceUS$26.08
BuyUS$42229 Apr 19
Richard Bray
EntityIndividual
Shares16
Max PriceUS$26.36
BuyUS$36929 Apr 19
Jacqueline Amato
EntityIndividual
Role
Chairman Emeritus
Director
Shares14
Max PriceUS$26.36
BuyUS$36929 Apr 19
Keith Horton
EntityIndividual
Shares14
Max PriceUS$26.36
BuyUS$5329 Apr 19
Dawn Glynn
EntityIndividual
Shares2
Max PriceUS$26.36
BuyUS$5,21929 Apr 19
J. Davis
EntityIndividual
Role
Chief Executive Officer
President
Shares198
Max PriceUS$26.36
BuyUS$224,66629 Apr 19
John Lawson
EntityIndividual
Shares8,523
Max PriceUS$26.36
SellUS$12,75616 Apr 19
William Littreal
EntityIndividual
Role
Chief Financial Officer
Senior EVP
Shares502
Max PriceUS$25.41
BuyUS$1,500,01316 Apr 19
G. Aston
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares60,460
Max PriceUS$24.81
BuyUS$5312 Apr 19
Keith Horton
EntityIndividual
Shares2
Max PriceUS$26.54
BuyUS$5312 Apr 19
Una Oliver
EntityIndividual
Role
Head of Marketing
Senior EVP
Shares2
Max PriceUS$26.54
BuyUS$25612 Apr 19
William Littreal
EntityIndividual
Role
Chief Financial Officer
Senior EVP
Shares10
Max PriceUS$25.62
BuyUS$35,31210 Apr 19
Robert Oman
EntityIndividual
Shares1,285
Max PriceUS$27.48
SellUS$7,61810 Apr 19
Keith Horton
EntityIndividual
Shares288
Max PriceUS$26.45
SellUS$7,47610 Apr 19
Dawn Glynn
EntityIndividual
Shares280
Max PriceUS$26.70
SellUS$5,84710 Apr 19
Una Oliver
EntityIndividual
Role
Head of Marketing
Senior EVP
Shares219
Max PriceUS$26.70
SellUS$8,73110 Apr 19
Philip Rudisill
EntityIndividual
Shares327
Max PriceUS$26.70
SellUS$1,12110 Apr 19
Kevin Fly
EntityIndividual
Role
Chief Accounting Officer
Senior EVP & Chief Accounting Officer
Shares42
Max PriceUS$26.70
SellUS$9,34510 Apr 19
William Foster
EntityIndividual
Role
Member of the Board of Directors
President of Commercial and Real Estate Banking & Director
Shares350
Max PriceUS$26.70
BuyUS$40,78010 Apr 19
Elizabeth Patterson
EntityIndividual
Shares1,484
Max PriceUS$27.48
SellUS$2,64510 Apr 19
Brian Skinner
EntityIndividual
Shares100
Max PriceUS$26.45
SellUS$6,16310 Apr 19
William Littreal
EntityIndividual
Role
Chief Financial Officer
Senior EVP
Shares233
Max PriceUS$26.45
SellUS$12,29910 Apr 19
G. Aston
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares465
Max PriceUS$26.45
SellUS$9,70710 Apr 19
J. Davis
EntityIndividual
Role
Chief Executive Officer
President
Shares367
Max PriceUS$26.45
BuyUS$69,74509 Apr 19
William Foster
EntityIndividual
Role
Member of the Board of Directors
President of Commercial and Real Estate Banking & Director
Shares2,461
Max PriceUS$28.34
SellUS$48,18109 Apr 19
G. Aston
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares1,740
Max PriceUS$27.69
BuyUS$188,54609 Apr 19
Brad Schwartz
EntityIndividual
Role
Member of the Board of Directors
Senior EVP
Shares6,653
Max PriceUS$28.34
BuyUS$5726 Feb 19
Richard Bray
EntityIndividual
Shares2
Max PriceUS$28.31
SellUS$1,83821 Feb 19
Kevin Fly
EntityIndividual
Role
Chief Accounting Officer
Senior EVP & Chief Accounting Officer
Shares65
Max PriceUS$28.27
SellUS$11,78921 Feb 19
William Foster
EntityIndividual
Role
Member of the Board of Directors
President of Commercial and Real Estate Banking & Director
Shares417
Max PriceUS$28.27
SellUS$3,35821 Feb 19
Keith Horton
EntityIndividual
Shares119
Max PriceUS$28.22
SellUS$4,88221 Feb 19
George Whitley
EntityIndividual
Role
Chief Legal Officer
Chief Legal Officer & Senior EVP of Virginia Business
Shares173
Max PriceUS$28.22
SellUS$11,31621 Feb 19
Brad Schwartz
EntityIndividual
Role
Member of the Board of Directors
Senior EVP
Shares401
Max PriceUS$28.22
SellUS$3,81021 Feb 19
Philip Rudisill
EntityIndividual
Shares135
Max PriceUS$28.22
SellUS$3,13221 Feb 19
Una Oliver
EntityIndividual
Role
Head of Marketing
Senior EVP
Shares111
Max PriceUS$28.22
SellUS$3,41521 Feb 19
Brian Skinner
EntityIndividual
Shares121
Max PriceUS$28.22
SellUS$13,85621 Feb 19
J. Davis
EntityIndividual
Role
Chief Executive Officer
President
Shares491
Max PriceUS$28.22
SellUS$16,76321 Feb 19
G. Aston
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares594
Max PriceUS$28.22
SellUS$9,58421 Feb 19
Dawn Glynn
EntityIndividual
Shares339
Max PriceUS$28.27
SellUS$25,45421 Feb 19
William Littreal
EntityIndividual
Role
Chief Financial Officer
Senior EVP
Shares902
Max PriceUS$28.22
SellUS$1,32812 Feb 19
Kevin Fly
EntityIndividual
Role
Chief Accounting Officer
Senior EVP & Chief Accounting Officer
Shares50
Max PriceUS$26.55
SellUS$5,10031 Jan 19
Andrew Fine
EntityIndividual
Shares200
Max PriceUS$25.50
BuyUS$51,08029 Jan 19
William Morrison
EntityIndividual
Role
Unit Chairman
Director
Shares2,000
Max PriceUS$25.54
BuyUS$2,58008 Jan 19
Douglas Ellis
EntityIndividual
Shares100
Max PriceUS$25.80
SellUS$5,26208 Jan 19
Andrew Fine
EntityIndividual
Shares189
Max PriceUS$28.30
BuyUS$4,13108 Jan 19
Bradford Cherry
EntityIndividual
Shares162
Max PriceUS$25.50
SellUS$70,72818 Dec 18
Richard Bray
EntityIndividual
Shares2,800
Max PriceUS$25.26
SellUS$11,52414 Dec 18
William Foster
EntityIndividual
Role
Member of the Board of Directors
President of Commercial and Real Estate Banking & Director
Shares447
Max PriceUS$25.78
SellUS$13,48104 Dec 18
George Whitley
EntityIndividual
Role
Chief Legal Officer
Chief Legal Officer & Senior EVP of Virginia Business
Shares473
Max PriceUS$28.50
SellUS$19,88416 Nov 18
William Foster
EntityIndividual
Role
Member of the Board of Directors
President of Commercial and Real Estate Banking & Director
Shares715
Max PriceUS$27.81
SellUS$55,68705 Nov 18
Edward Baynor
EntityIndividual
Shares1,979
Max PriceUS$28.22
SellUS$161,65202 Nov 18
Robert Oman
EntityIndividual
Shares5,819
Max PriceUS$27.78
SellUS$160,17002 Nov 18
Robert Oman
EntityIndividual
Shares5,700
Max PriceUS$28.10
BuyUS$149,19531 Oct 18
George Whitley
EntityIndividual
Role
Chief Legal Officer
Chief Legal Officer & Senior EVP of Virginia Business
Shares5,300
Max PriceUS$28.15
BuyUS$107,88329 Oct 18
Alan Witt
EntityIndividual
Shares3,900
Max PriceUS$27.75
BuyUS$30424 Oct 18
Philip Rudisill
EntityIndividual
Shares10
Max PriceUS$30.43
BuyUS$1,49124 Oct 18
Richard Thurmond
EntityIndividual
Shares49
Max PriceUS$30.43
BuyUS$3024 Oct 18
Una Oliver
EntityIndividual
Role
Head of Marketing
Senior EVP
Shares1
Max PriceUS$30.43
BuyUS$12224 Oct 18
David Patterson
EntityIndividual
Shares4
Max PriceUS$30.43
BuyUS$2,88515 Oct 18
William Morrison
EntityIndividual
Role
Unit Chairman
Director
Shares93
Max PriceUS$31.75
BuyUS$9521 Sep 18
R. Morgan
EntityIndividual
Shares3
Max PriceUS$31.71
SellUS$12,72017 Sep 18
William Foster
EntityIndividual
Role
Member of the Board of Directors
President of Commercial and Real Estate Banking & Director
Shares400
Max PriceUS$31.80
SellUS$350,79012 Sep 18
Robert Hatley
EntityIndividual
Shares11,000
Max PriceUS$31.89
SellUS$14,25629 Aug 18
William Foster
EntityIndividual
Role
Member of the Board of Directors
President of Commercial and Real Estate Banking & Director
Shares440
Max PriceUS$32.40

Ownership Breakdown


Management Team

  • Brad Schwartz (56yo)

    Senior EVP

    • Tenure: 3.2yrs
    • Compensation: US$1.19m
  • Bob Aston (74yo)

    Executive Chairman

    • Tenure: 21.6yrs
    • Compensation: US$2.35m
  • Una Oliver (67yo)

    Senior EVP

    • Tenure: 20.6yrs
  • Thomas Hasty (63yo)

    Senior Executive Vice President of Risk Management

    • Tenure: 20.6yrs
  • J. Davis (68yo)

    President

    • Tenure: 1.4yrs
    • Compensation: US$2.09m
  • Shirley Sasser

    Senior VP & Director of Corporate Sales

    • Tenure: 0.0yrs
  • Bill Littreal (49yo)

    Senior EVP

    • Tenure: 1.4yrs
    • Compensation: US$1.19m
  • Will Morrison (56yo)

    Director

    • Tenure: 0.0yrs
    • Compensation: US$1.52m
  • George Whitley (66yo)

    Chief Legal Officer & Senior EVP of Virginia Business

    • Tenure: 2.8yrs
  • Kevin Fly (53yo)

    Senior EVP & Chief Accounting Officer

    • Tenure: 1.3yrs

Board Members

  • Gordon Gentry (82yo)

    Chairman of TowneBank Peninsula

    • Tenure: 0.0yrs
    • Compensation: US$53.21k
  • Brad Schwartz (56yo)

    Senior EVP

    • Tenure: 3.2yrs
    • Compensation: US$1.19m
  • Bob Aston (74yo)

    Executive Chairman

    • Tenure: 21.6yrs
    • Compensation: US$2.35m
  • Jeff Benson (57yo)

    Vice Chairman of the Board

    • Tenure: 3.2yrs
    • Compensation: US$53.38k
  • Bill Foster (63yo)

    President of Commercial and Real Estate Banking & Director

    • Tenure: 14.3yrs
  • William Lewis (73yo)

    Director

    • Tenure: 20.6yrs
    • Compensation: US$48.73k
  • John Failes (74yo)

    Vice Chairman of the Board

    • Tenure: 0.0yrs
    • Compensation: US$54.58k
  • Jackie Amato (69yo)

    Director

    • Tenure: 0.0yrs
    • Compensation: US$3.62m
  • J. Davis (68yo)

    President

    • Tenure: 1.4yrs
    • Compensation: US$2.09m
  • Will Morrison (56yo)

    Director

    • Tenure: 0.0yrs
    • Compensation: US$1.52m

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$1.907b
  • 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 Analysis2019/08/20 23:51
End of Day Share Price2019/08/20 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.