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

2.1%

TOWN

3.7%

US Banks

1.8%

US Market


1 Year Return

-3.9%

TOWN

1.9%

US Banks

7.3%

US Market

Return vs Industry: TOWN underperformed the US Banks industry which returned 1.9% over the past year.

Return vs Market: TOWN underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

TOWNIndustryMarket
7 Day2.1%3.7%1.8%
30 Day-1.7%0.2%-0.7%
90 Day1.2%2.5%0.06%
1 Year-1.4%-3.9%4.9%1.9%9.7%7.3%
3 Year19.2%12.0%51.7%41.2%46.3%36.9%
5 Year114.9%91.7%69.7%51.2%64.5%46.5%

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 compared to its fair value and its price relative to the market?

14.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: TOWN ($27.66) is trading above our estimate of fair value ($25.38)

Significantly Undervalued: 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 (14.2x) compared to the Banks industry average (12.6x).

PE vs Market: TOWN is good value based on its PE Ratio (14.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low 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 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 2 analysts?

-1.2%

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 (-1.2% per year).

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

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

Revenue vs Market: TOWN's revenue (3.7% per year) is forecast to grow slower than the US market (7.3% per year).

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


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has TowneBank performed over the past 5 years?

25.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

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

Earnings vs Industry: TOWN earnings growth over the past year (41.8%) exceeded the Banks industry 30.5%.


Return on Equity

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


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

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


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 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 1.609060x 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 (0.22%)


Next Steps

Dividend

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

2.60%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%1.5%markettop25%3.7%industryaverage3.0%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TOWN's dividend (2.6%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: TOWN's dividend (2.6%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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 (33.8%), TOWN's dividend payments are well covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

J. Davis (68yo)

1.6yrs

Tenure

US$2,090,269

Compensation

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


CEO Compensation Analysis

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

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


Management Age and Tenure

3.0yrs

Average Tenure

63yo

Average Age

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


Board Age and Tenure

17.6yrs

Average Tenure

68.5yo

Average Age

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


Insider Trading

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


Recent Insider Transactions

SellUS$216,55619 Sep 19
William Lewis
EntityIndividual
Role
Member of the Board of Directors
Director
Shares7,801
Max PriceUS$27.76
BuyUS$218,50619 Sep 19
F. Wood
EntityIndividual
Shares7,801
Max PriceUS$28.01
SellUS$19,08818 Sep 19
Juan Montero
EntityIndividual
Shares680
Max PriceUS$28.07
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
BuyUS$52201 May 19
Una Oliver
EntityIndividual
Role
Head of Marketing
Senior EVP
Shares20
Max PriceUS$26.08
SellUS$30,02401 May 19
Andrew Fine
EntityIndividual
Shares1,136
Max PriceUS$26.43
BuyUS$36929 Apr 19
Keith Horton
EntityIndividual
Shares14
Max PriceUS$26.36
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$224,66629 Apr 19
John Lawson
EntityIndividual
Shares8,523
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
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
SellUS$12,29910 Apr 19
G. Aston
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares465
Max PriceUS$26.45
SellUS$7,61810 Apr 19
Keith Horton
EntityIndividual
Shares288
Max PriceUS$26.45
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
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
BuyUS$35,31210 Apr 19
Robert Oman
EntityIndividual
Shares1,285
Max PriceUS$27.48
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$9,70710 Apr 19
J. Davis
EntityIndividual
Role
Chief Executive Officer
President
Shares367
Max PriceUS$26.45
SellUS$48,18109 Apr 19
G. Aston
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares1,740
Max PriceUS$27.69
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
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$13,85621 Feb 19
J. Davis
EntityIndividual
Role
Chief Executive Officer
President
Shares491
Max PriceUS$28.22
SellUS$1,83821 Feb 19
Kevin Fly
EntityIndividual
Role
Chief Accounting Officer
Senior EVP & Chief Accounting Officer
Shares65
Max PriceUS$28.27
SellUS$16,76321 Feb 19
G. Aston
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares594
Max PriceUS$28.22
SellUS$25,45421 Feb 19
William Littreal
EntityIndividual
Role
Chief Financial Officer
Senior EVP
Shares902
Max PriceUS$28.22
SellUS$9,58421 Feb 19
Dawn Glynn
EntityIndividual
Shares339
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$3,41521 Feb 19
Brian Skinner
EntityIndividual
Shares121
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$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$4,13108 Jan 19
Bradford Cherry
EntityIndividual
Shares162
Max PriceUS$25.50
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
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$160,17002 Nov 18
Robert Oman
EntityIndividual
Shares5,700
Max PriceUS$28.10
SellUS$161,65202 Nov 18
Robert Oman
EntityIndividual
Shares5,819
Max PriceUS$27.78
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$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$1,49124 Oct 18
Richard Thurmond
EntityIndividual
Shares49
Max PriceUS$30.43

Ownership Breakdown


Management Team

  • Brad Schwartz (56yo)

    Senior EVP

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

    Executive Chairman

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

    Senior EVP

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

    Senior Executive Vice President of Risk Management

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

    President

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

    Senior VP & Director of Corporate Sales

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

    Senior EVP

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

    Director

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

    Chief Legal Officer & Senior EVP of Virginia Business

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

    Senior EVP & Chief Accounting Officer

    • Tenure: 1.4yrs

Board Members

  • Gordon Gentry (82yo)

    Chairman of TowneBank Peninsula

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

    Senior EVP

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

    Executive Chairman

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

    Vice Chairman of the Board

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

    President of Commercial and Real Estate Banking & Director

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

    Director

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

    Vice Chairman of the Board

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

    Director

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

    President

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

    Director

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

Company Information

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


Key Information

  • Name: TowneBank
  • Ticker: TOWN
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.987b
  • Shares outstanding: 71.82m
  • Website: https://www.townebank.com

Number of Employees


Location

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

Listings

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

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:40
End of Day Share Price2019/10/17 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.