TowneBank Reports Full Year and Fourth Quarter Financial Results for 2024
SUFFOLK, Va., Jan. 22, 2025 (GLOBE NEWSWIRE) — TowneBank (the “Company” or “Towne”) (Nasdaq: TOWN) today reported financial results for the full year and fourth quarter ended December 31, 2024. For the year ended December 31, 2024, earnings were $161.76 million, or $2.15 per diluted share, compared to $153.72 million, or $2.06 per diluted share, for the year ended December 31, 2023. Excluding certain items affecting comparability, core earnings (non-GAAP) for 2024 were $163.65 million, or $2.18 per diluted share, compared to $160.94 million, or $2.16 per diluted share, for 2023. Earnings in the fourth quarter of 2024 were $41.27 million, or $0.55 per diluted share, compared to fourth quarter 2023 earnings of $28.80 million, or $0.39 per diluted share. Excluding certain items affecting comparability, core earnings (non-GAAP) for fourth quarter 2024 were $41.42 million, or $0.55 per diluted share, compared to $31.10 million, or $0.42 per diluted share, for fourth quarter 2023.
“Diluted earnings per share increased $0.09, or 4.4%, year over year driven by stronger net interest income which improved each quarter throughout the year and stronger fee-based income contributions which demonstrates the value of our diversified business model. We continue to prudently manage our liquidity and capital levels consistent with our conservative Main Street banking model. In closing, I would like to thank the more than 2,700 Towne teammates across the Towne family of companies who work each day to execute our mission of Serving Others and Enriching Lives. That’s the true measure of our success,” said G. Robert Aston, Jr., Executive Chairman.
Annual Highlights for 2024 Compared to 2023:
- Total revenues decreased slightly to $693.75 million, compared to $694.12 million in the prior year. Net interest income decreased $15.18 million as higher deposit costs outpaced increases in interest income. Noninterest income increased $14.80 million driven by growth in residential mortgage banking income and insurance commissions, serving to largely offset the decline in net interest income.
- The insurance segment’s gross revenue was $118.11 million compared to $109.46 million in 2023.
- Loans held for investment increased $130.03 million, or 1.15%, from December 31, 2023.
- Total deposits were $14.44 billion, an increase of $0.54 billion, or 3.92%, compared to prior year.
- As rates continued to rise, noninterest-bearing deposits declined 2.06% to $4.25 billion driven by a mix shift into interest-bearing accounts. Noninterest-bearing deposits represented 29.46% of total deposits at December 31, 2024.
- Return on average common shareholders’ equity was 7.82%, and return on average tangible common shareholders’ equity (non-GAAP) was 11.11%.
- Net interest margin was 2.87% and taxable equivalent net interest margin (non-GAAP) was 2.90% compared to a prior year net interest margin of 3.03% and taxable equivalent net interest margin (non-GAAP) of 3.06%.
- Effective tax rate of 14.60% compared to 16.82% in 2023. The decline in effective tax rate was primarily due to the impact on state and federal taxes from the increase in credits and losses related to LIHTC investment properties placed in service during the year.
Highlights for Fourth Quarter 2024:
- Total revenues were $177.16 million in fourth quarter 2024, an increase of $21.61 million, or 13.90% from the prior year quarter. This increase was attributable to a combination of margin expansion and growth in noninterest income. Net interest income increased $10.32 million, or 9.58%, driven by increases in loan interest income offset by only marginal increases in deposit costs between quarters. Noninterest income increased $11.29 million, or 23.61%, in the quarterly comparison.
- Loans held for investment increased $46.54 million, or 1.62% on an annualized basis, from September 30, 2024.
- Total deposits increased $74.13 million, or 2.05% on an annualized basis, compared to September 30, 2024.
- Noninterest-bearing deposits decreased $14.58 million, or 1.36% on an annualized basis, compared to the linked quarter.
- In the quarter ended December 31, 2024, annualized return on average common shareholders’ equity was 7.70% and annualized return on average tangible common shareholders’ equity (non-GAAP) was 10.79%.
- Net interest margin was 2.99% and taxable equivalent net interest margin (non-GAAP) was 3.02% compared to the prior year quarter net interest margin of 2.83% and taxable equivalent net interest margin (non-GAAP) of 2.86%.
- Effective tax rate of 13.92% compared to 8.46% in fourth quarter 2023 and 11.52% in the linked quarter. The increase in the effective tax rate from fourth quarter 2023 to 2024 was due to a fourth quarter adjustment in 2023 to deferred income taxes related to the sale of BHHS that decreased the tax rate. The higher tax rate in the fourth quarter versus the linked quarter was due to an increase in state tax expense.
“As we look ahead to next year, we are excited about closing our partnership with Village Bank during the first quarter. We are optimistic about loan and deposit growth opportunities across our banking footprint which operates in some of the most vibrant markets in the country. We also plan to aggressively evaluate opportunities for enhancing our fee based businesses on an organic basis coupled with a disciplined acquisition strategy,” said William I. Foster III, President and Chief Executive Officer.
Quarterly Net Interest Income:
- Net interest income was $118.06 million compared to $107.73 million for the quarter ended December 31, 2023. Higher yields impacting interest income on loan and investment securities were the primary source of this growth.
- Taxable equivalent net interest margin (non-GAAP) was 3.02%, including purchase accounting accretion of 4 basis points, compared to 2.86%, including purchase accounting accretion of 4 basis points, for fourth quarter 2023.
- On an average basis, loans held for investment had a yield of 5.41%, which represented 72.90% of earning assets in the fourth quarter of 2024, compared to a yield of 5.22%, and 74.39% of earning assets in the fourth quarter of 2023.
- Total cost of deposits decreased to 2.07% from 2.29% in the linked quarter and 2.09% in the quarter ended December 31, 2023. Deposits costs began declining in third quarter 2024 as the Federal Reserve lowered short term rates by 100 basis points in the final four months of 2024.
- Average interest-earning assets totaled $15.71 billion at December 31, 2024 compared to $15.10 billion at December 31, 2023, an increase of 4.09%.
- Average interest-bearing liabilities totaled $10.46 billion, an increase of $0.59 billion, or 5.96%, compared to the prior year.
Quarterly Provision for Credit Losses:
- The provision for credit losses was an expense of $1.61 million in the current quarter compared to a benefit of $1.10 million in the linked quarter, and an expense of $2.45 million one year ago.
- The allowance for credit losses on loans increased $0.73 million, compared to the linked quarter. The increase in the allowance was driven by a combination of modest loan growth and an increase to our weightings of the more adverse macroeconomic forecast scenarios utilized in our models.
- Net charge-offs were $382 thousand compared to $68 thousand one year prior and $677 thousand in the linked quarter. The ratio of net charge-offs to average loans on an annualized basis was 0.01% in fourth quarter 2024, 0.00% in fourth quarter 2023, and 0.02% in the linked quarter.
- The allowance for credit losses on loans represented 1.08% of total loans at both December 31, 2024 and September 30, 2024, compared to 1.12% at December 31, 2023. The allowance for credit losses on loans was 16.69 times nonperforming loans compared to 18.70 times at September 30, 2024 and 18.48 times at December 31, 2023.
Quarterly Noninterest Income:
- Total noninterest income was $59.10 million compared to $47.81 million in 2023, an increase of $11.29 million, or 23.61%.
- Residential mortgage banking income was $11.27 million compared to $8.04 million in fourth quarter 2023. Loan volume in the current quarter was $565.43 million, with purchase activity comprising 89.46%. Loan volume in fourth quarter 2023 was $428.95 million, with purchase activity of 95.06%. Home purchases appear to be on the rise despite a continuation of elevated mortgage rates and home sale inventory limitations.
- Gross margins on residential mortgages increased 19 basis points from 3.06% in fourth quarter 2023 to 3.25% in the current quarter. Gross margins declined 3 basis points from 3.28%, when compared to the linked quarter.
- Property management fee revenue increased 11.25%, or $828 thousand, in comparison to fourth quarter 2023 driven by an acquisition in early 2024.
- Total insurance commissions and other income increased $2.06 million, or 9.70%, to $23.27 million in the fourth quarter of 2024 due to organic growth.
- Investment commissions increased $0.82 million, or 34.24%, driven by higher production levels.
Quarterly Noninterest Expense:
- Total noninterest expense was $127.44 million compared to $121.90 million, an increase of $5.55 million, or 4.55%. This reflects increases in salary and benefits expense of $8.36 million, occupancy expense of $0.51 million, and furniture and equipment expense of $0.41 million.
- Salaries and benefits expense increases were driven by annual base salary adjustments that went into effect October 2024 and increases in performance based compensation and employee benefit costs.
- Increases in occupancy expense and furniture and equipment expense were driven by Company expansion and relocation activities. Towne has opened two full service branches since November 2023, completed a branch relocation in Greenville, NC, and relocated our regional headquarters in Greensboro, NC.
Consolidated Balance Sheet Highlights:
- Total assets were $17.25 billion at December 31, 2024, an increase of 2.45%, compared to $16.84 billion at December 31, 2023. The increase was driven by modest growth in loans and investment securities.
- Loans held for investment increased $130.03 million, or 1.15%, compared to year end 2023 and $46.54 million compared to the linked quarter, 1.62% on an annualized basis. Management has focused on maintaining a strong balance sheet in 2024 by controlling loan growth through pricing.
- Mortgage loans held for sale increased $50.47 million, or 33.65%, compared to prior year but declined $63.86 million, or 24.16%, compared to the linked quarter due to seasonality.
- Total deposits increased $544.09 million, or 3.92%, compared to December 31, 2023 and $74.13 million, or 0.52%, or 2.05% on an annualized basis compared to the linked quarter.
- Noninterest-bearing deposits decreased $89.65 million, or 2.06%, compared to prior year, and $14.58 million, or 0.34%, compared to the linked quarter.
- Total loans held for investment to total deposits were 79.37% compared to 79.46% at September 30, 2024 and 81.54% at December 31, 2023.
- Total borrowings decreased $195.68 million, or 39.73%, from prior year.
Investment Securities:
- Total investment securities were $2.59 billion compared to $2.60 billion at September 30, 2024 and $2.64 billion at December 31, 2023. The weighted average duration of the portfolio at December 31, 2024 was 3.3 years. The carrying value of the AFS debt securities portfolio included $155.28 million in net unrealized losses, related to changes in interest rates, at December 31, 2024 compared to $162.12 million in net unrealized losses at December 31, 2023.
Loans and Asset Quality:
- Total loans held for investment were $11.46 billion at December 31, 2024 compared to $11.41 billion at September 30, 2024 and $11.33 billion at December 31, 2023.
- Nonperforming assets were $7.87 million, or 0.05% of total assets, compared to $7.75 million, or 0.05% of total assets, at December 31, 2023.
- Nonperforming loans were 0.06% of period end loans at both December 31, 2024 and 2023.
- Foreclosed property which consisted of repossessed autos at December 31, 2024 totaled $0.44 million, declining from $0.91 million at December 31, 2023.
Deposits and Borrowings:
- Total deposits were $14.44 billion compared to $14.36 billion at September 30, 2024 and $13.89 billion at December 31, 2023.
- Noninterest-bearing deposits were 29.46% of total deposits at December 31, 2024 compared to 29.71% at September 30, 2024 and 31.26% at December 31, 2023.
- Total borrowings were $296.90 million compared to $290.82 million at September 30, 2024 and $492.58 million at December 31, 2023.
Capital:
- Common equity tier 1 capital ratio of 12.77% (1).
- Tier 1 leverage capital ratio of 10.36% (1).
- Tier 1 risk-based capital ratio of 12.89% (1).
- Total risk-based capital ratio of 15.68% (1).
- Book value per share was $28.43 compared to $28.59 at September 30, 2024 and $27.24 at December 31, 2023.
- Tangible book value per share (non-GAAP) was $21.55 compared to $21.65 at September 30, 2024 and $20.28 at December 31, 2023.
(1) Preliminary.
Acquisition of Village Bank and Trust Financial Corp:
We anticipate the previously announced acquisition of Village Bank and Trust Financial Corp. and its wholly owned bank subsidiary, Village Bank to close by the end of first quarter 2025.
Annual Meeting of Shareholders:
TowneBank intends to hold its 2025 Annual Meeting of Shareholders at 11:30 a.m. on Wednesday, May 14, 2025 at the Virginia Beach Convention Center, 1000 19th Street in Virginia Beach, Virginia.
About TowneBank:
Founded in 1999, TowneBank is a company built on relationships, offering a full range of banking and other financial services, with a focus of serving others and enriching lives. Dedicated to a culture of caring, Towne values all employees and members by embracing their diverse talents, perspectives, and experiences.
Now celebrating 25 years, TowneBank operates over 50 banking offices throughout Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina – serving as a local leader in promoting the social, cultural, and economic growth in each community. Towne offers a competitive array of business and personal banking solutions, delivered with only the highest ethical standards. Experienced local bankers providing a higher level of expertise and personal attention with local decision-making are key to the TowneBank strategy. TowneBank has grown its capabilities beyond banking to provide expertise through its affiliated companies that include Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices RW Towne Realty, Towne 1031 Exchange, LLC, and Towne Vacations. With total assets of $17.25 billion as of December 31, 2024, TowneBank is one of the largest banks headquartered in Virginia.
Non-GAAP Financial Measures:
This press release contains certain financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such non-GAAP financial measures include the following: core operating earnings, fully tax-equivalent net interest margin, tangible book value per common share, total risk-based capital ratio, tier one leverage ratio, tier one capital ratio, and the tangible common equity to tangible assets ratio. Management uses these non-GAAP financial measures to assess the performance of TowneBank’s core business and the strength of its capital position. Management believes that these non-GAAP financial measures provide meaningful additional information about TowneBank to assist investors in evaluating operating results, financial strength, and capitalization. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant charges for credit costs and other factors. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The computations of the non-GAAP financial measures used in this presentation are referenced in a footnote or in the appendix to this presentation.
Forward-Looking Statements:
This press release contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only the beliefs, expectations, or opinions of TowneBank and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward-looking statements may be identified by the use of such words as: “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional terms, such as “will,” “would,” “should,” “could,” “may,” “likely,” “probably,” or “possibly.” These statements may address issues that involve significant risks, uncertainties, estimates, and assumptions made by management. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include among others, competitive pressures in the banking industry that may increase significantly; changes in the interest rate environment that may reduce margins and/or the volumes and values of loans made or held as well as the value of other financial assets held; an unforeseen outflow of cash or deposits or an inability to access the capital markets, which could jeopardize our overall liquidity or capitalization; changes in the creditworthiness of customers and the possible impairment of the collectability of loans; insufficiency of our allowance for credit losses due to market conditions, inflation, changing interest rates or other factors; adverse developments in the financial industry generally, such as the recent bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer and client behavior; general economic conditions, either nationally or regionally, that may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit or other services; geopolitical instability, including wars, conflicts, civil unrest, and terrorist attacks and the potential impact, directly or indirectly, on our business; the effects of weather-related or natural disasters, which may negatively affect our operations and/or our loan portfolio and increase our cost of conducting business; public health events (such as the COVID-19 pandemic) and governmental and societal responses to them; changes in the legislative or regulatory environment, including changes in accounting standards and tax laws, that may adversely affect our business; our ability to close the transaction with Village Bank when expected or at all because required approvals and other conditions to closing are not received or satisfied on the proposed terms or on the anticipated schedule; our integration of Village Bank’s business to the extent that it may take longer or be more difficult, time-consuming, or costly to accomplish than expected; deposit attrition, operating costs, customer losses, and business disruption following the Village Bank transaction, including adverse effects on relationships with employees and customers; costs or difficulties related to the integration of the businesses we have acquired may be greater than expected; expected growth opportunities or cost savings associated with pending or recently completed acquisitions may not be fully realized or realized within the expected time frame; cybersecurity threats or attacks, whether directed at us or at vendors or other third parties with which we interact, the implementation of new technologies, and the ability to develop and maintain reliable electronic systems; our competitors may have greater financial resources and develop products that enable them to compete more successfully; changes in business conditions; changes in the securities market; and changes in our local economy with regard to our market area. Any forward-looking statements made by us or on our behalf speak only as of the date they are made or as of the date indicated, and we do not undertake any obligation to update forward-looking statements as a result of new information, future events, or otherwise. For additional information on factors that could materially influence forward-looking statements included in this report, see the “Risk Factors” in TowneBank’s Annual Report on Form 10-K for the year ended December 31, 2023, and related disclosures in other filings that have been, or will be, filed by TowneBank with the Federal Deposit Insurance Corporation.
Media contact:
G. Robert Aston, Jr., Executive Chairman, 757-638-6780
William I. Foster III, President and Chief Executive Officer, 757-417-6482
Investor contact:
William B. Littreal, Chief Financial Officer, 757-638-6813
| TOWNEBANK | ||||||||||||||||||||
| Selected Financial Highlights (unaudited) | ||||||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | ||||||||||||||||
| Income and Performance Ratios: | ||||||||||||||||||||
| Total revenue | $ | 177,160 | $ | 174,518 | $ | 174,970 | $ | 167,102 | $ | 155,546 | ||||||||||
| Net income | 41,441 | 43,126 | 43,039 | 35,127 | 28,545 | |||||||||||||||
| Net income available to common shareholders | 41,265 | 42,949 | 42,856 | 34,687 | 28,804 | |||||||||||||||
| Net income per common share – diluted | 0.55 | 0.57 | 0.57 | 0.46 | 0.39 | |||||||||||||||
| Book value per common share | 28.43 | 28.59 | 27.62 | 27.33 | 27.24 | |||||||||||||||
| Book value per share – tangible (non-GAAP) | 21.55 | 21.65 | 20.65 | 20.31 | 20.28 | |||||||||||||||
| Return on average assets | 0.95 | % | 1.00 | % | 1.01 | % | 0.83 | % | 0.68 | % | ||||||||||
| Return on average assets – tangible (non-GAAP) | 1.03 | % | 1.09 | % | 1.11 | % | 0.92 | % | 0.77 | % | ||||||||||
| Return on average equity | 7.64 | % | 8.12 | % | 8.43 | % | 6.84 | % | 5.75 | % | ||||||||||
| Return on average equity – tangible (non-GAAP) | 10.68 | % | 11.42 | % | 12.03 | % | 9.87 | % | 8.53 | % | ||||||||||
| Return on average common equity | 7.70 | % | 8.18 | % | 8.49 | % | 6.89 | % | 5.79 | % | ||||||||||
| Return on average common equity – tangible (non-GAAP) | 10.79 | % | 11.54 | % | 12.16 | % | 9.98 | % | 8.62 | % | ||||||||||
| Noninterest income as a percentage of total revenue | 33.36 | % | 35.66 | % | 37.68 | % | 38.23 | % | 30.74 | % | ||||||||||
| Regulatory Capital Ratios (1): | ||||||||||||||||||||
| Common equity tier 1 | 12.77 | % | 12.63 | % | 12.43 | % | 12.20 | % | 12.18 | % | ||||||||||
| Tier 1 | 12.89 | % | 12.76 | % | 12.55 | % | 12.32 | % | 12.29 | % | ||||||||||
| Total | 15.68 | % | 15.54 | % | 15.34 | % | 15.10 | % | 15.06 | % | ||||||||||
| Tier 1 leverage ratio | 10.36 | % | 10.38 | % | 10.25 | % | 10.15 | % | 10.17 | % | ||||||||||
| Asset Quality: | ||||||||||||||||||||
| Allowance for credit losses on loans to nonperforming loans | 16.69x | 18.70x | 19.08x | 18.01x | 18.48x | |||||||||||||||
| Allowance for credit losses on loans to period end loans | 1.08 | % | 1.08 | % | 1.10 | % | 1.10 | % | 1.12 | % | ||||||||||
| Nonperforming loans to period end loans | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | ||||||||||
| Nonperforming assets to period end assets | 0.05 | % | 0.04 | % | 0.04 | % | 0.05 | % | 0.05 | % | ||||||||||
| Net charge-offs (recoveries) to average loans (annualized) | 0.01 | % | 0.02 | % | — | % | 0.02 | % | — | % | ||||||||||
| Net charge-offs (recoveries) | $ | 382 | $ | 677 | $ | (19 | ) | $ | 520 | $ | 68 | |||||||||
| Nonperforming loans | $ | 7,424 | $ | 6,588 | $ | 6,582 | $ | 6,987 | $ | 6,843 | ||||||||||
| Foreclosed property | 443 | 884 | 581 | 780 | 908 | |||||||||||||||
| Total nonperforming assets | $ | 7,867 | $ | 7,472 | $ | 7,163 | $ | 7,767 | $ | 7,751 | ||||||||||
| Loans past due 90 days and still accruing interest | $ | 1,264 | $ | 510 | $ | 368 | $ | 323 | $ | 735 | ||||||||||
| Allowance for credit losses on loans | $ | 123,923 | $ | 123,191 | $ | 125,552 | $ | 125,835 | $ | 126,461 | ||||||||||
| Mortgage Banking: | ||||||||||||||||||||
| Loans originated, mortgage | $ | 385,238 | $ | 421,571 | $ | 430,398 | $ | 289,191 | $ | 302,616 | ||||||||||
| Loans originated, joint venture | 180,188 | 176,612 | 196,583 | 135,197 | 126,332 | |||||||||||||||
| Total loans originated | $ | 565,426 | $ | 598,183 | $ | 626,981 | $ | 424,388 | $ | 428,948 | ||||||||||
| Number of loans originated | 1,489 | 1,637 | 1,700 | 1,247 | 1,237 | |||||||||||||||
| Number of originators | 160 | 159 | 169 | 176 | 181 | |||||||||||||||
| Purchase % | 89.46 | % | 91.49 | % | 94.85 | % | 95.66 | % | 95.06 | % | ||||||||||
| Loans sold | $ | 629,120 | $ | 526,998 | $ | 605,134 | $ | 410,895 | $ | 468,014 | ||||||||||
| Rate lock asset | $ | 1,150 | $ | 1,548 | $ | 1,930 | $ | 1,681 | $ | 895 | ||||||||||
| Gross realized gain on sales and fees as a % of loans originated | 3.25 | % | 3.28 | % | 3.28 | % | 3.34 | % | 3.06 | % | ||||||||||
| Other Ratios: | ||||||||||||||||||||
| Net interest margin | 2.99 | % | 2.90 | % | 2.86 | % | 2.72 | % | 2.83 | % | ||||||||||
| Net interest margin-fully tax equivalent (non-GAAP) | 3.02 | % | 2.93 | % | 2.89 | % | 2.75 | % | 2.86 | % | ||||||||||
| Average earning assets/total average assets | 90.57 | % | 90.43 | % | 90.36 | % | 90.52 | % | 90.48 | % | ||||||||||
| Average loans/average deposits | 78.71 | % | 80.07 | % | 80.80 | % | 81.48 | % | 80.72 | % | ||||||||||
| Average noninterest deposits/total average deposits | 30.14 | % | 30.19 | % | 30.06 | % | 30.25 | % | 31.69 | % | ||||||||||
| Period end equity/period end total assets | 12.50 | % | 12.58 | % | 12.24 | % | 12.24 | % | 12.21 | % | ||||||||||
| Efficiency ratio (non-GAAP) | 70.28 | % | 70.93 | % | 68.98 | % | 73.25 | % | 76.17 | % | ||||||||||
| (1) Current reporting period regulatory capital ratios are preliminary. | ||||||||||||||||||||
| TOWNEBANK | |||||||||||||||||
| Selected Data (unaudited) | |||||||||||||||||
| (dollars in thousands) | |||||||||||||||||
| Investment Securities | % Change | ||||||||||||||||
| Q4 | Q4 | Q3 | Q4 24 vs. | Q4 24 vs. | |||||||||||||
| Available-for-sale securities, at fair value | 2024 | 2023 | 2024 | Q4 23 | Q3 24 | ||||||||||||
| U.S. agency securities | $ | 293,917 | $ | 306,386 | $ | 291,814 | (4.07 | )% | 0.72 | % | |||||||
| U.S. Treasury notes | 28,429 | 27,684 | 28,655 | 2.69 | % | (0.79 | )% | ||||||||||
| Municipal securities | 439,115 | 510,134 | 455,722 | (13.92 | )% | (3.64 | )% | ||||||||||
| Trust preferred and other corporate securities | 95,279 | 86,011 | 91,525 | 10.78 | % | 4.10 | % | ||||||||||
| Mortgage-backed securities issued by GSE | 1,497,951 | 1,200,625 | 1,496,631 | 24.76 | % | 0.09 | % | ||||||||||
| Allowance for credit losses | (1,326 | ) | (1,498 | ) | (1,171 | ) | (11.48 | )% | 13.24 | % | |||||||
| Total | $ | 2,353,365 | $ | 2,129,342 | $ | 2,363,176 | 10.52 | % | (0.42 | )% | |||||||
| Gross unrealized gains (losses) reflected in financial statements | |||||||||||||||||
| Total gross unrealized gains | $ | 2,572 | $ | 3,740 | $ | 6,703 | (31.23 | )% | (61.63 | )% | |||||||
| Total gross unrealized losses | (157,851 | ) | (165,863 | ) | (117,319 | ) | (4.83 | )% | 34.55 | % | |||||||
| Net unrealized gains (losses) and other adjustments on AFS securities | $ | (155,279 | ) | $ | (162,123 | ) | $ | (110,616 | ) | (4.22 | )% | 40.38 | % | ||||
| Held-to-maturity securities, at amortized cost | |||||||||||||||||
| U.S. agency securities | $ | 102,622 | $ | 101,850 | $ | 102,428 | 0.76 | % | 0.19 | % | |||||||
| U.S. Treasury notes | 96,710 | 362,593 | 96,942 | (73.33 | )% | (0.24 | )% | ||||||||||
| Municipal securities | 5,366 | 5,272 | 5,342 | 1.78 | % | 0.45 | % | ||||||||||
| Trust preferred corporate securities | 2,121 | 2,172 | 2,133 | (2.35 | )% | (0.56 | )% | ||||||||||
| Mortgage-backed securities issued by GSE | 5,533 | 5,705 | 5,577 | (3.01 | )% | (0.79 | )% | ||||||||||
| Allowance for credit losses | (77 | ) | (84 | ) | (77 | ) | (8.33 | )% | — | % | |||||||
| Total | $ | 212,275 | $ | 477,508 | $ | 212,345 | (55.55 | )% | (0.03 | )% | |||||||
| Total gross unrealized gains | $ | 178 | $ | 380 | $ | 323 | (53.16 | )% | (44.89 | )% | |||||||
| Total gross unrealized losses | (8,647 | ) | (15,316 | ) | (7,929 | ) | N/M | 9.06 | % | ||||||||
| Net unrealized gains (losses) on HTM securities | $ | (8,469 | ) | $ | (14,936 | ) | $ | (7,606 | ) | (43.30 | )% | 11.35 | % | ||||
| Total unrealized (losses) gains on AFS and HTM securities | $ | (163,748 | ) | $ | (177,059 | ) | $ | (118,222 | ) | (7.52 | )% | 38.51 | % | ||||
| % Change | |||||||||||||||||
| Loans Held For Investment | Q4 | Q4 | Q3 | Q4 24 vs. | Q4 24 vs. | ||||||||||||
| 2024 | 2023 | 2024 | Q4 23 | Q3 24 | |||||||||||||
| Real estate – construction and development | $ | 1,082,161 | $ | 1,249,735 | $ | 1,118,669 | (13.41 | )% | (3.26 | )% | |||||||
| Commercial real estate – owner occupied | 1,628,731 | 1,699,386 | 1,655,345 | (4.16 | )% | (1.61 | )% | ||||||||||
| Commercial real estate – non owner occupied | 3,196,665 | 3,117,071 | 3,179,699 | 2.55 | % | 0.53 | % | ||||||||||
| Real estate – multifamily | 801,079 | 583,209 | 750,906 | 37.36 | % | 6.68 | % | ||||||||||
| Residential 1-4 family | 1,891,470 | 1,852,891 | 1,891,216 | 2.08 | % | 0.01 | % | ||||||||||
| HELOC | 410,594 | 382,979 | 408,565 | 7.21 | % | 0.50 | % | ||||||||||
| Commercial and industrial business (C&I) | 1,280,394 | 1,265,169 | 1,256,511 | 1.20 | % | 1.90 | % | ||||||||||
| Government | 513,039 | 525,261 | 521,681 | (2.33 | )% | (1.66 | )% | ||||||||||
| Indirect | 567,245 | 558,789 | 546,887 | 1.51 | % | 3.72 | % | ||||||||||
| Consumer loans and other | 87,677 | 94,531 | 83,039 | (7.25 | )% | 5.59 | % | ||||||||||
| Total | $ | 11,459,055 | $ | 11,329,021 | $ | 11,412,518 | 1.15 | % | 0.41 | % | |||||||
| % Change | |||||||||||||||||
| Deposits | Q4 | Q4 | Q3 | Q4 24 vs. | Q4 24 vs. | ||||||||||||
| 2024 | 2023 | 2024 | Q4 23 | Q3 24 | |||||||||||||
| Noninterest-bearing demand | $ | 4,253,053 | $ | 4,342,701 | $ | 4,267,628 | (2.06 | )% | (0.34 | )% | |||||||
| Interest-bearing: | |||||||||||||||||
| Demand and money market accounts | 7,329,669 | 6,757,619 | 6,990,103 | 8.47 | % | 4.86 | % | ||||||||||
| Savings | 311,841 | 336,492 | 319,970 | (7.33 | )% | (2.54 | )% | ||||||||||
| Certificates of deposits | 2,542,735 | 2,456,394 | 2,785,469 | 3.51 | % | (8.71 | )% | ||||||||||
| Total | $ | 14,437,298 | $ | 13,893,206 | $ | 14,363,170 | 3.92 | % | 0.52 | % | |||||||
| TOWNEBANK | ||||||||||||||||||||||||||||||||
| Average Balances, Yields and Rate Paid (unaudited) | ||||||||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||
| December 31, 2024 | September 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||
| Interest | Average | Interest | Average | Interest | Average | |||||||||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||||||
| Balance | Expense | Rate (1) | Balance | Expense | Rate (1) | Balance | Expense | Rate (1) | ||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||
| Loans (net of unearned income and deferred costs) | $ | 11,455,253 | $ | 155,710 | 5.41 | % | $ | 11,419,428 | $ | 156,610 | 5.46 | % | $ | 11,229,965 | $ | 147,647 | 5.22 | % | ||||||||||||||
| Taxable investment securities | 2,421,253 | 20,722 | 3.42 | % | 2,376,102 | 20,940 | 3.53 | % | 2,365,928 | 18,820 | 3.18 | % | ||||||||||||||||||||
| Tax-exempt investment securities | 176,266 | 1,832 | 4.16 | % | 168,768 | 1,686 | 4.00 | % | 195,603 | 1,989 | 4.07 | % | ||||||||||||||||||||
| Total securities | 2,597,519 | 22,554 | 3.47 | % | 2,544,870 | 22,626 | 3.56 | % | 2,561,531 | 20,809 | 3.25 | % | ||||||||||||||||||||
| Interest-bearing deposits | 1,451,121 | 15,796 | 4.33 | % | 1,226,445 | 15,249 | 4.95 | % | 1,141,086 | 13,967 | 4.86 | % | ||||||||||||||||||||
| Mortgage loans held for sale | 209,315 | 3,088 | 5.90 | % | 208,513 | 3,247 | 6.23 | % | 162,543 | 2,886 | 7.10 | % | ||||||||||||||||||||
| Total earning assets | 15,713,208 | 197,148 | 4.99 | % | 15,399,256 | 197,732 | 5.11 | % | 15,095,125 | 185,309 | 4.87 | % | ||||||||||||||||||||
| Less: allowance for credit losses | (123,068 | ) | (125,331 | ) | (126,205 | ) | ||||||||||||||||||||||||||
| Total nonearning assets | 1,758,988 | 1,754,216 | 1,714,121 | |||||||||||||||||||||||||||||
| Total assets | $ | 17,349,128 | $ | 17,028,141 | $ | 16,683,041 | ||||||||||||||||||||||||||
| Liabilities and Equity: | ||||||||||||||||||||||||||||||||
| Interest-bearing deposits | ||||||||||||||||||||||||||||||||
| Demand and money market | $ | 7,157,076 | $ | 43,894 | 2.44 | % | $ | 6,917,622 | $ | 48,896 | 2.81 | % | $ | 6,786,850 | $ | 46,833 | 2.74 | % | ||||||||||||||
| Savings | 315,414 | 777 | 0.98 | % | 315,338 | 842 | 1.06 | % | 345,172 | 962 | 1.11 | % | ||||||||||||||||||||
| Certificates of deposit | 2,694,236 | 31,214 | 4.61 | % | 2,723,437 | 32,390 | 4.73 | % | 2,370,723 | 25,405 | 4.25 | % | ||||||||||||||||||||
| Total interest-bearing deposits | 10,166,726 | 75,885 | 2.97 | % | 9,956,397 | 82,128 | 3.28 | % | 9,502,745 | 73,200 | 3.06 | % | ||||||||||||||||||||
| Borrowings | 36,708 | (151 | ) | (1.61 | )% | 33,867 | (25 | ) | (0.29 | )% | 114,151 | 958 | 3.28 | % | ||||||||||||||||||
| Subordinated debt, net | 257,667 | 2,261 | 3.51 | % | 256,309 | 2,237 | 3.49 | % | 255,663 | 2,236 | 3.50 | % | ||||||||||||||||||||
| Total interest-bearing liabilities | 10,461,101 | 77,995 | 2.97 | % | 10,246,573 | 84,340 | 3.27 | % | 9,872,559 | 76,394 | 3.07 | % | ||||||||||||||||||||
| Demand deposits | 4,386,911 | 4,305,783 | 4,408,712 | |||||||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 353,005 | 370,736 | 413,468 | |||||||||||||||||||||||||||||
| Total liabilities | 15,201,017 | 14,923,092 | 14,694,739 | |||||||||||||||||||||||||||||
| Shareholders’ equity | 2,148,111 | 2,105,049 | 1,988,302 | |||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 17,349,128 | $ | 17,028,141 | $ | 16,683,041 | ||||||||||||||||||||||||||
| Net interest income (tax-equivalent basis) (4) | $ | 119,153 | $ | 113,392 | $ | 108,915 | ||||||||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||
| Tax-equivalent basis adjustment | (1,096 | ) | (1,110 | ) | (1,182 | ) | ||||||||||||||||||||||||||
| Net interest income (GAAP) | $ | 118,057 | $ | 112,282 | $ | 107,733 | ||||||||||||||||||||||||||
| Interest rate spread (2)(4) | 2.02 | % | 1.84 | % | 1.80 | % | ||||||||||||||||||||||||||
| Interest expense as a percent of average earning assets | 1.97 | % | 2.18 | % | 2.01 | % | ||||||||||||||||||||||||||
| Net interest margin (tax-equivalent basis) (3)(4) | 3.02 | % | 2.93 | % | 2.86 | % | ||||||||||||||||||||||||||
| Total cost of deposits | 2.07 | % | 2.29 | % | 2.09 | % | ||||||||||||||||||||||||||
(1) Yields and interest income are presented on a tax-equivalent basis using the federal statutory tax rate of 21%.
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax equivalent.
(4) Non-GAAP.
| TOWNEBANK | |||||||||||||||||||||
| Average Balances, Yields and Rate Paid (unaudited) | |||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||
| Interest | Average | Interest | Average | ||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||
| Balance | Expense | Rate (1) | Balance | Expense | Rate (1) | ||||||||||||||||
| Assets: | |||||||||||||||||||||
| Loans (net of unearned income and deferred costs) | $ | 11,431,451 | $ | 619,505 | 5.42 | % | $ | 11,177,132 | $ | 565,453 | 5.06 | % | |||||||||
| Taxable investment securities | 2,401,605 | 82,049 | 3.42 | % | 2,406,845 | 71,476 | 2.97 | % | |||||||||||||
| Tax-exempt investment securities | 165,806 | 6,588 | 3.97 | % | 200,040 | 7,872 | 3.94 | % | |||||||||||||
| Total securities | 2,567,411 | 88,637 | 3.45 | % | 2,606,885 | 79,348 | 3.04 | % | |||||||||||||
| Interest-bearing deposits | 1,257,373 | 59,791 | 4.76 | % | 1,170,156 | 54,135 | 4.63 | % | |||||||||||||
| Mortgage loans held for sale | 175,207 | 10,995 | 6.28 | % | 167,240 | 10,965 | 6.56 | % | |||||||||||||
| Total earning assets | 15,431,442 | 778,928 | 5.05 | % | 15,121,413 | 709,901 | 4.69 | % | |||||||||||||
| Less: allowance for credit losses | (125,643 | ) | (121,878 | ) | |||||||||||||||||
| Total nonearning assets | 1,750,922 | 1,657,151 | |||||||||||||||||||
| Total assets | $ | 17,056,721 | $ | 16,656,686 | |||||||||||||||||
| Liabilities and Equity: | |||||||||||||||||||||
| Interest-bearing deposits | |||||||||||||||||||||
| Demand and money market | $ | 6,950,210 | $ | 188,936 | 2.72 | % | $ | 6,459,679 | $ | 143,574 | 2.22 | % | |||||||||
| Savings | 319,369 | 3,345 | 1.05 | % | 368,440 | 3,639 | 0.99 | % | |||||||||||||
| Certificates of deposit | 2,679,468 | 126,143 | 4.71 | % | 2,067,053 | 72,763 | 3.52 | % | |||||||||||||
| Total interest-bearing deposits | 9,949,047 | 318,424 | 3.20 | % | 8,895,172 | 219,976 | 2.47 | % | |||||||||||||
| Borrowings | 95,448 | 4,529 | 4.67 | % | 407,125 | 18,600 | 4.51 | % | |||||||||||||
| Subordinated debt, net | 256,489 | 8,970 | 3.50 | % | 254,129 | 8,886 | 3.50 | % | |||||||||||||
| Total interest-bearing liabilities | 10,300,984 | 331,923 | 3.22 | % | 9,556,426 | 247,462 | 2.59 | % | |||||||||||||
| Demand deposits | 4,296,372 | 4,756,681 | |||||||||||||||||||
| Other noninterest-bearing liabilities | 374,372 | 368,585 | |||||||||||||||||||
| Total liabilities | 14,971,728 | 14,681,692 | |||||||||||||||||||
| Shareholders’ equity | 2,084,993 | 1,974,994 | |||||||||||||||||||
| Total liabilities and equity | $ | 17,056,721 | $ | 16,656,686 | |||||||||||||||||
| Net interest income (tax-equivalent basis) (4) | $ | 447,005 | $ | 462,439 | |||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||||
| Tax-equivalent basis adjustment | (4,400 | ) | (4,659 | ) | |||||||||||||||||
| Net interest income (GAAP) | $ | 442,605 | $ | 457,780 | |||||||||||||||||
| Interest rate spread (2)(4) | 1.83 | % | 2.10 | % | |||||||||||||||||
| Interest expense as a percent of average earning assets | 2.15 | % | 1.64 | % | |||||||||||||||||
| Net interest margin (tax-equivalent basis) (3)(4) | 2.90 | % | 3.06 | % | |||||||||||||||||
| Total cost of deposits | 2.24 | % | 1.61 | % | |||||||||||||||||
(1) Yields and interest income are presented on a tax-equivalent basis using the federal statutory rate of 21%.
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax equivalent.
(4) Non-GAAP.
| TOWNEBANK | |||||||
| Consolidated Balance Sheets | |||||||
| (dollars in thousands, except per share data) | |||||||
| 2024 | 2023 | ||||||
| (unaudited) | (audited) | ||||||
| ASSETS | |||||||
| Cash and due from banks | $ | 108,750 | $ | 85,584 | |||
| Interest-bearing deposits at FRB | 1,127,878 | 939,356 | |||||
| Interest-bearing deposits in financial institutions | 102,847 | 103,417 | |||||
| Total Cash and Cash Equivalents | 1,339,475 | 1,128,357 | |||||
| Securities available for sale, at fair value (amortized cost of $2,509,970 and $2,292,963, and allowance for credit losses of $1,326 and $1,498 at December 31, 2024 and December 31, 2023, respectively. | 2,353,365 | 2,129,342 | |||||
| Securities held to maturity, at amortized cost (fair value $203,883 and $462,656 at December 31, 2024 and December 31, 2023, respectively. | 212,352 | 477,592 | |||||
| Less: allowance for credit losses | (77 | ) | (84 | ) | |||
| Securities held to maturity, net of allowance for credit losses | 212,275 | 477,508 | |||||
| Other equity securities | 12,100 | 13,792 | |||||
| FHLB stock | 12,136 | 21,372 | |||||
| Total Securities | 2,589,876 | 2,642,014 | |||||
| Mortgage loans held for sale | 200,460 | 149,987 | |||||
| Loans, net of unearned income and deferred costs | 11,459,055 | 11,329,021 | |||||
| Less: allowance for credit losses | (123,923 | ) | (126,461 | ) | |||
| Net Loans | 11,335,132 | 11,202,560 | |||||
| Premises and equipment, net | 368,876 | 337,598 | |||||
| Goodwill | 457,619 | 456,335 | |||||
| Other intangible assets, net | 60,171 | 64,634 | |||||
| BOLI | 279,802 | 277,445 | |||||
| Other assets | 615,479 | 576,109 | |||||
| TOTAL ASSETS | $ | 17,246,890 | $ | 16,835,039 | |||
| LIABILITIES AND EQUITY | |||||||
| Deposits: | |||||||
| Noninterest-bearing demand | $ | 4,253,053 | $ | 4,342,701 | |||
| Interest-bearing: | |||||||
| Demand and money market accounts | 7,329,669 | 6,757,619 | |||||
| Savings | 311,841 | 336,492 | |||||
| Certificates of deposit | 2,542,735 | 2,456,394 | |||||
| Total Deposits | 14,437,298 | 13,893,206 | |||||
| Advances from the FHLB | 3,218 | 203,958 | |||||
| Subordinated debt, net | 260,001 | 255,796 | |||||
| Repurchase agreements and other borrowings | 33,683 | 32,826 | |||||
| Total Borrowings | 296,902 | 492,580 | |||||
| Other liabilities | 357,063 | 393,375 | |||||
| TOTAL LIABILITIES | 15,091,263 | 14,779,161 | |||||
| Preferred stock, authorized and unissued shares – 2,000,000 | — | — | |||||
| Common stock, $1.667 par: Authorized shares – 150,000,000 | |||||||
| Issued and outstanding shares 75,255,205 in 2024 and 74,893,462 in 2023 | 125,455 | 124,847 | |||||
| Capital surplus | 1,122,147 | 1,112,761 | |||||
| Retained earnings | 1,007,775 | 921,126 | |||||
| Common stock issued to deferred compensation trust, at cost | |||||||
| 1,046,121 shares in 2024 and 1,004,717 shares in 2023 | 21,868 | 20,813 | |||||
| Deferred compensation trust | (21,868 | ) | (20,813 | ) | |||
| Accumulated other comprehensive income (loss) | (116,045 | ) | (118,762 | ) | |||
| TOTAL SHAREHOLDERS’ EQUITY | 2,139,332 | 2,039,972 | |||||
| Noncontrolling interest | 16,295 | 15,906 | |||||
| TOTAL EQUITY | 2,155,627 | 2,055,878 | |||||
| TOTAL LIABILITIES AND EQUITY | $ | 17,246,890 | $ | 16,835,039 | |||
| TOWNEBANK | |||||||||||||||
| Consolidated Statements of Income | |||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (audited) | ||||||||||||
| INTEREST INCOME: | |||||||||||||||
| Loans, including fees | $ | 154,933 | $ | 146,810 | $ | 616,248 | $ | 562,160 | |||||||
| Investment securities | 22,236 | 20,464 | 87,494 | 77,982 | |||||||||||
| Interest-bearing deposits in financial institutions and federal funds sold | 15,796 | 13,967 | 59,791 | 54,135 | |||||||||||
| Mortgage loans held for sale | 3,087 | 2,886 | 10,995 | 10,965 | |||||||||||
| Total interest income | 196,052 | 184,127 | 774,528 | 705,242 | |||||||||||
| INTEREST EXPENSE: | |||||||||||||||
| Deposits | 75,885 | 73,200 | 318,424 | 219,976 | |||||||||||
| Advances from the FHLB | 26 | 917 | 3,435 | 17,754 | |||||||||||
| Subordinated debt, net | 2,261 | 2,236 | 8,970 | 8,886 | |||||||||||
| Repurchase agreements and other borrowings | (177 | ) | 41 | 1,094 | 846 | ||||||||||
| Total interest expense | 77,995 | 76,394 | 331,923 | 247,462 | |||||||||||
| Net interest income | 118,057 | 107,733 | 442,605 | 457,780 | |||||||||||
| PROVISION FOR CREDIT LOSSES | 1,606 | 2,446 | (548 | ) | 18,679 | ||||||||||
| Net interest income after provision for credit losses | 116,451 | 105,287 | 443,153 | 439,101 | |||||||||||
| NONINTEREST INCOME: | |||||||||||||||
| Residential mortgage banking income, net | 11,272 | 8,035 | 46,957 | 39,415 | |||||||||||
| Insurance commissions and related income, net | 23,265 | 21,207 | 98,562 | 90,305 | |||||||||||
| Property management income, net | 8,186 | 7,358 | 50,492 | 47,791 | |||||||||||
| Real estate brokerage (loss) income, net | — | (32 | ) | — | 3,530 | ||||||||||
| Service charges on deposit accounts | 3,289 | 3,056 | 12,838 | 11,631 | |||||||||||
| Credit card merchant fees, net | 1,486 | 1,476 | 6,529 | 6,709 | |||||||||||
| Investment commissions, net | 3,195 | 2,380 | 10,953 | 8,962 | |||||||||||
| BOLI | 4,478 | 2,206 | 11,444 | 7,402 | |||||||||||
| Gain (loss) on sale of equity investment | 218 | (10 | ) | 238 | 9,377 | ||||||||||
| Other income | 3,714 | 2,137 | 13,058 | 11,220 | |||||||||||
| Net gain on investment securities | — | — | 74 | — | |||||||||||
| Total noninterest income | 59,103 | 47,813 | 251,145 | 236,342 | |||||||||||
| NONINTEREST EXPENSE: | |||||||||||||||
| Salaries and employee benefits | 74,399 | 66,035 | 289,248 | 270,158 | |||||||||||
| Occupancy | 9,819 | 9,308 | 38,309 | 36,886 | |||||||||||
| Furniture and equipment | 4,850 | 4,445 | 18,619 | 17,178 | |||||||||||
| Amortization – intangibles | 3,095 | 3,411 | 12,769 | 14,155 | |||||||||||
| Software expense | 6,870 | 6,743 | 26,816 | 24,666 | |||||||||||
| Data processing | 3,788 | 3,529 | 17,011 | 15,033 | |||||||||||
| Professional fees | 3,446 | 3,339 | 15,134 | 12,286 | |||||||||||
| Advertising and marketing | 3,359 | 3,377 | 15,627 | 15,390 | |||||||||||
| Other expenses | 17,815 | 21,708 | 70,383 | 83,470 | |||||||||||
| Total noninterest expense | 127,441 | 121,895 | 503,916 | 489,222 | |||||||||||
| Income before income tax expense and noncontrolling interest | 48,113 | 31,205 | 190,382 | 186,221 | |||||||||||
| Provision for income tax expense | 6,672 | 2,660 | 27,649 | 31,085 | |||||||||||
| Net income | $ | 41,441 | $ | 28,545 | $ | 162,733 | $ | 155,136 | |||||||
| Net (income) loss attributable to noncontrolling interest | (176 | ) | 259 | (976 | ) | (1,421 | ) | ||||||||
| Net income attributable to TowneBank | $ | 41,265 | $ | 28,804 | $ | 161,757 | $ | 153,715 | |||||||
| Per common share information | |||||||||||||||
| Basic earnings | $ | 0.55 | $ | 0.39 | $ | 2.16 | $ | 2.06 | |||||||
| Diluted earnings | $ | 0.55 | $ | 0.39 | $ | 2.15 | $ | 2.06 | |||||||
| Cash dividends declared | $ | 0.25 | $ | 0.25 | $ | 1.00 | $ | 0.98 | |||||||
| TOWNEBANK | |||||||||||||||||||
| Consolidated Balance Sheets – Five Quarter Trend | |||||||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (audited) | |||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and due from banks | $ | 108,750 | $ | 131,068 | $ | 140,028 | $ | 75,802 | $ | 85,584 | |||||||||
| Interest-bearing deposits at FRB | 1,127,878 | 1,061,596 | 1,062,115 | 926,635 | 939,356 | ||||||||||||||
| Federal funds sold and interest-bearing deposits in financial institutions | 102,847 | 103,400 | 99,303 | 98,673 | 103,417 | ||||||||||||||
| Total Cash and Cash Equivalents | 1,339,475 | 1,296,064 | 1,301,446 | 1,101,110 | 1,128,357 | ||||||||||||||
| Securities available for sale | 2,353,365 | 2,363,176 | 2,250,679 | 2,204,101 | 2,129,342 | ||||||||||||||
| Securities held to maturity | 212,352 | 212,422 | 212,488 | 312,510 | 477,592 | ||||||||||||||
| Less: allowance for credit losses | (77 | ) | (77 | ) | (79 | ) | (82 | ) | (84 | ) | |||||||||
| Securities held to maturity, net of allowance for credit losses | 212,275 | 212,345 | 212,409 | 312,428 | 477,508 | ||||||||||||||
| Other equity securities | 12,100 | 12,681 | 13,566 | 13,661 | 13,792 | ||||||||||||||
| FHLB stock | 12,136 | 12,134 | 12,134 | 12,139 | 21,372 | ||||||||||||||
| Total Securities | 2,589,876 | 2,600,336 | 2,488,788 | 2,542,329 | 2,642,014 | ||||||||||||||
| Mortgage loans held for sale | 200,460 | 264,320 | 200,762 | 150,727 | 149,987 | ||||||||||||||
| Loans, net of unearned income and deferred costs | 11,459,055 | 11,412,518 | 11,451,747 | 11,452,343 | 11,329,021 | ||||||||||||||
| Less: allowance for credit losses | (123,923 | ) | (123,191 | ) | (125,552 | ) | (125,835 | ) | (126,461 | ) | |||||||||
| Net Loans | 11,335,132 | 11,289,327 | 11,326,195 | 11,326,508 | 11,202,560 | ||||||||||||||
| Premises and equipment, net | 368,876 | 365,764 | 340,348 | 342,569 | 337,598 | ||||||||||||||
| Goodwill | 457,619 | 457,619 | 457,619 | 457,619 | 456,335 | ||||||||||||||
| Other intangible assets, net | 60,171 | 63,265 | 65,460 | 68,758 | 64,634 | ||||||||||||||
| BOLI | 279,802 | 279,325 | 277,434 | 279,293 | 277,445 | ||||||||||||||
| Other assets | 615,479 | 572,000 | 610,791 | 615,324 | 576,109 | ||||||||||||||
| TOTAL ASSETS | $ | 17,246,890 | $ | 17,188,020 | $ | 17,068,843 | $ | 16,884,237 | $ | 16,835,039 | |||||||||
| LIABILITIES AND EQUITY | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Noninterest-bearing demand | $ | 4,253,053 | $ | 4,267,628 | $ | 4,303,773 | $ | 4,194,132 | $ | 4,342,701 | |||||||||
| Interest-bearing: | |||||||||||||||||||
| Demand and money market accounts | 7,329,669 | 6,990,103 | 6,940,086 | 6,916,701 | 6,757,619 | ||||||||||||||
| Savings | 311,841 | 319,970 | 312,881 | 326,179 | 336,492 | ||||||||||||||
| Certificates of deposit | 2,542,735 | 2,785,469 | 2,715,848 | 2,689,062 | 2,456,394 | ||||||||||||||
| Total Deposits | 14,437,298 | 14,363,170 | 14,272,588 | 14,126,074 | 13,893,206 | ||||||||||||||
| Advances from the FHLB | 3,218 | 3,405 | 3,591 | 3,775 | 203,958 | ||||||||||||||
| Subordinated debt, net | 260,001 | 256,444 | 256,227 | 256,011 | 255,796 | ||||||||||||||
| Repurchase agreements and other borrowings | 33,683 | 30,970 | 35,351 | 31,198 | 32,826 | ||||||||||||||
| Total Borrowings | 296,902 | 290,819 | 295,169 | 290,984 | 492,580 | ||||||||||||||
| Other liabilities | 357,063 | 371,316 | 411,770 | 401,307 | 393,375 | ||||||||||||||
| TOTAL LIABILITIES | 15,091,263 | 15,025,305 | 14,979,527 | 14,818,365 | 14,779,161 | ||||||||||||||
| Preferred stock | — | — | — | — | — | ||||||||||||||
| Common stock, $1.667 par value | 125,455 | 125,139 | 125,090 | 125,009 | 124,847 | ||||||||||||||
| Capital surplus | 1,122,147 | 1,117,279 | 1,115,759 | 1,114,038 | 1,112,761 | ||||||||||||||
| Retained earnings | 1,007,775 | 985,343 | 961,162 | 937,065 | 921,126 | ||||||||||||||
| Common stock issued to deferred compensation trust, at cost | (21,868 | ) | (22,224 | ) | (22,756 | ) | (20,915 | ) | (20,813 | ) | |||||||||
| Deferred compensation trust | 21,868 | 22,224 | 22,756 | 20,915 | 20,813 | ||||||||||||||
| Accumulated other comprehensive income (loss) | (116,045 | ) | (81,482 | ) | (129,224 | ) | (126,586 | ) | (118,762 | ) | |||||||||
| TOTAL SHAREHOLDERS’ EQUITY | 2,139,332 | 2,146,279 | 2,072,787 | 2,049,526 | 2,039,972 | ||||||||||||||
| Noncontrolling interest | 16,295 | 16,436 | 16,529 | 16,346 | 15,906 | ||||||||||||||
| TOTAL EQUITY | 2,155,627 | 2,162,715 | 2,089,316 | 2,065,872 | 2,055,878 | ||||||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 17,246,890 | $ | 17,188,020 | $ | 17,068,843 | $ | 16,884,237 | $ | 16,835,039 | |||||||||
| TOWNEBANK | |||||||||||||||||||
| Consolidated Statements of Income – Five Quarter Trend (unaudited) | |||||||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2022 | |||||||||||||||
| INTEREST INCOME: | |||||||||||||||||||
| Loans, including fees | $ | 154,933 | $ | 155,792 | $ | 154,549 | $ | 150,974 | $ | 146,810 | |||||||||
| Investment securities | 22,236 | 22,334 | 22,928 | 19,996 | 20,464 | ||||||||||||||
| Interest-bearing deposits in financial institutions and federal funds sold | 15,796 | 15,249 | 14,512 | 14,234 | 13,967 | ||||||||||||||
| Mortgage loans held for sale | 3,087 | 3,247 | 2,945 | 1,716 | 2,886 | ||||||||||||||
| Total interest income | 196,052 | 196,622 | 194,934 | 186,920 | 184,127 | ||||||||||||||
| INTEREST EXPENSE: | |||||||||||||||||||
| Deposits | 75,885 | 82,128 | 82,023 | 78,388 | 73,200 | ||||||||||||||
| Advances from the FHLB | 26 | 29 | 942 | 2,438 | 917 | ||||||||||||||
| Subordinated debt, net | 2,261 | 2,237 | 2,236 | 2,236 | 2,236 | ||||||||||||||
| Repurchase agreements and other borrowings | (177 | ) | (54 | ) | 685 | 640 | 41 | ||||||||||||
| Total interest expense | 77,995 | 84,340 | 85,886 | 83,702 | 76,394 | ||||||||||||||
| Net interest income | 118,057 | 112,282 | 109,048 | 103,218 | 107,733 | ||||||||||||||
| PROVISION FOR CREDIT LOSSES | 1,606 | (1,100 | ) | (177 | ) | (877 | ) | 2,446 | |||||||||||
| Net interest income after provision for credit losses | 116,451 | 113,382 | 109,225 | 104,095 | 105,287 | ||||||||||||||
| NONINTEREST INCOME: | |||||||||||||||||||
| Residential mortgage banking income, net | 11,272 | 11,786 | 13,422 | 10,477 | 8,035 | ||||||||||||||
| Insurance commissions and related income, net | 23,265 | 25,727 | 24,031 | 25,539 | 21,207 | ||||||||||||||
| Property management income, net | 8,186 | 11,221 | 14,312 | 16,773 | 7,358 | ||||||||||||||
| Real estate brokerage (loss) income, net | — | — | — | — | (32 | ) | |||||||||||||
| Service charges on deposit accounts | 3,289 | 3,117 | 3,353 | 3,079 | 3,056 | ||||||||||||||
| Credit card merchant fees, net | 1,486 | 1,830 | 1,662 | 1,551 | 1,476 | ||||||||||||||
| Investment commissions, net | 3,195 | 2,835 | 2,580 | 2,343 | 2,380 | ||||||||||||||
| BOLI | 4,478 | 1,886 | 3,238 | 1,842 | 2,206 | ||||||||||||||
| Other income | 3,932 | 3,834 | 3,324 | 2,206 | 2,127 | ||||||||||||||
| Net gain/(loss) on investment securities | — | — | — | 74 | — | ||||||||||||||
| Total noninterest income | 59,103 | 62,236 | 65,922 | 63,884 | 47,813 | ||||||||||||||
| NONINTEREST EXPENSE: | |||||||||||||||||||
| Salaries and employee benefits | 74,399 | 72,123 | 71,349 | 71,377 | 66,035 | ||||||||||||||
| Occupancy | 9,819 | 9,351 | 9,717 | 9,422 | 9,308 | ||||||||||||||
| Furniture and equipment | 4,850 | 4,657 | 4,634 | 4,478 | 4,445 | ||||||||||||||
| Amortization – intangibles | 3,095 | 3,130 | 3,298 | 3,246 | 3,411 | ||||||||||||||
| Software | 6,870 | 6,790 | 7,056 | 6,100 | 6,743 | ||||||||||||||
| Data processing | 3,788 | 4,701 | 4,606 | 3,916 | 3,529 | ||||||||||||||
| Professional fees | 3,446 | 4,720 | 3,788 | 3,180 | 3,339 | ||||||||||||||
| Advertising and marketing | 3,359 | 4,162 | 3,524 | 4,582 | 3,377 | ||||||||||||||
| Other expenses | 17,815 | 17,266 | 16,012 | 19,290 | 21,708 | ||||||||||||||
| Total noninterest expense | 127,441 | 126,900 | 123,984 | 125,591 | 121,895 | ||||||||||||||
| Income before income tax expense and noncontrolling interest | 48,113 | 48,718 | 51,163 | 42,388 | 31,205 | ||||||||||||||
| Provision for income tax expense | 6,672 | 5,592 | 8,124 | 7,261 | 2,660 | ||||||||||||||
| Net income | $ | 41,441 | $ | 43,126 | $ | 43,039 | $ | 35,127 | $ | 28,545 | |||||||||
| Net (income) loss attributable to noncontrolling interest | (176 | ) | (177 | ) | (183 | ) | (440 | ) | 259 | ||||||||||
| Net income attributable to TowneBank | $ | 41,265 | $ | 42,949 | $ | 42,856 | $ | 34,687 | $ | 28,804 | |||||||||
| Per common share information | |||||||||||||||||||
| Basic earnings | $ | 0.55 | $ | 0.57 | $ | 0.57 | $ | 0.46 | $ | 0.39 | |||||||||
| Diluted earnings | $ | 0.55 | $ | 0.57 | $ | 0.57 | $ | 0.46 | $ | 0.39 | |||||||||
| Basic weighted average shares outstanding | 75,034,688 | 74,940,827 | 74,925,877 | 74,816,420 | 74,773,335 | ||||||||||||||
| Diluted weighted average shares outstanding | 75,309,989 | 75,141,661 | 75,037,955 | 74,979,501 | 74,793,557 | ||||||||||||||
| Cash dividends declared | $ | 0.25 | $ | 0.25 | $ | 0.25 | $ | 0.25 | $ | 0.25 | |||||||||
| TOWNEBANK | ||||||||||||||||||||||||||
| Banking Segment Financial Information | ||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||
| Three Months Ended | Year Ended | Increase/(Decrease) | ||||||||||||||||||||||||
| December 31, | September 30, 2024 | December 31, | 2024 over 2023 | |||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | Amount | Percent | |||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||
| Net interest income | $ | 117,137 | $ | 106,906 | $ | 111,569 | $ | 439,417 | $ | 456,071 | $ | (16,654 | ) | (3.65 | )% | |||||||||||
| Service charges on deposit accounts | 3,289 | 3,055 | 3,117 | 12,838 | 11,631 | 1,207 | 10.38 | % | ||||||||||||||||||
| Credit card merchant fees | 1,486 | 1,476 | 1,830 | 6,529 | 6,709 | (180 | ) | (2.68 | )% | |||||||||||||||||
| Investment commissions, net | 3,195 | 2,380 | 2,835 | 10,953 | 8,962 | 1,991 | 22.22 | % | ||||||||||||||||||
| Other income | 6,456 | 4,144 | 4,828 | 19,551 | 16,156 | 3,395 | 21.01 | % | ||||||||||||||||||
| Subtotal | 14,426 | 11,055 | 12,610 | 49,871 | 43,458 | 6,413 | 14.76 | % | ||||||||||||||||||
| Gain on investment securities | — | — | — | 74 | — | 74 | n/m | |||||||||||||||||||
| Total noninterest income | 14,426 | 11,055 | 12,610 | 49,945 | 43,458 | 6,487 | 14.93 | % | ||||||||||||||||||
| Total revenue | 131,563 | 117,961 | 124,179 | 489,362 | 499,529 | (10,167 | ) | (2.04 | )% | |||||||||||||||||
| Provision for credit losses | 1,525 | 2,831 | (1,043 | ) | (665 | ) | 19,273 | (19,938 | ) | 103.45 | % | |||||||||||||||
| Expenses | ||||||||||||||||||||||||||
| Salaries and employee benefits | 50,130 | 42,573 | 47,148 | 190,391 | 170,733 | 19,658 | 11.51 | % | ||||||||||||||||||
| Occupancy | 7,362 | 6,981 | 6,963 | 28,579 | 26,698 | 1,881 | 7.05 | % | ||||||||||||||||||
| Furniture and equipment | 4,087 | 3,621 | 3,878 | 15,423 | 13,771 | 1,652 | 12.00 | % | ||||||||||||||||||
| Amortization of intangible assets | 1,027 | 1,236 | 1,072 | 4,378 | 5,154 | (776 | ) | (15.06 | )% | |||||||||||||||||
| Other expenses | 25,590 | 29,602 | 26,674 | 102,806 | 109,819 | (7,013 | ) | (6.39 | )% | |||||||||||||||||
| Total expenses | 88,196 | 84,013 | 85,735 | 341,577 | 326,175 | 15,402 | 4.72 | % | ||||||||||||||||||
| Income before income tax, corporate allocation and noncontrolling interest | 41,842 | 31,117 | 39,487 | 148,450 | 154,081 | (5,631 | ) | (3.65 | )% | |||||||||||||||||
| Corporate allocation | 1,172 | 1,054 | 1,223 | 4,696 | 4,817 | (121 | ) | (2.51 | )% | |||||||||||||||||
| Income before income tax provision and noncontrolling interest | 43,014 | 32,171 | 40,710 | 153,146 | 158,898 | (5,752 | ) | (3.62 | )% | |||||||||||||||||
| Provision for income tax expense | 5,275 | 2,661 | 3,495 | 18,006 | 23,866 | (5,860 | ) | (24.55 | )% | |||||||||||||||||
| Net income | 37,739 | 29,510 | 37,215 | 135,140 | 135,032 | 108 | 0.08 | % | ||||||||||||||||||
| Noncontrolling interest | (63 | ) | — | (29 | ) | (29 | ) | — | (29 | ) | n/m | |||||||||||||||
| Net income attributable to TowneBank | $ | 37,676 | $ | 29,510 | $ | 37,186 | $ | 135,111 | $ | 135,032 | $ | 79 | 0.06 | % | ||||||||||||
| Efficiency ratio (non-GAAP) | 66.26 | % | 70.17 | % | 68.18 | % | 68.92 | % | 64.26 | % | ||||||||||||||||
| TOWNEBANK | ||||||||||||||||||||||||||
| Realty Segment Financial Information | ||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||
| Three Months Ended | Year Ended | Increase/(Decrease) | ||||||||||||||||||||||||
| December 31, | September 30, | December 31, | 2024 over 2023 | |||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2024 | 2023 | Amount | Percent | ||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||
| Residential mortgage banking income, net | $ | 11,580 | $ | 8,322 | $ | 12,211 | $ | 48,586 | $ | 41,287 | $ | 7,299 | 17.68 | % | ||||||||||||
| Real estate brokerage (loss) income, net | — | (32 | ) | — | — | 3,530 | (3,530 | ) | (100.00 | )% | ||||||||||||||||
| Title insurance and settlement fees | — | — | — | — | 443 | (443 | ) | (100.00 | )% | |||||||||||||||||
| Property management fees, net | 8,186 | 7,358 | 11,221 | 50,492 | 47,791 | 2,701 | 5.65 | % | ||||||||||||||||||
| Income (loss) from unconsolidated subsidiary | 68 | (425 | ) | 51 | 216 | (1,309 | ) | 1,525 | 116.50 | % | ||||||||||||||||
| Gain on sale of equity investment | — | — | — | — | 8,833 | (8,833 | ) | (100.00 | )% | |||||||||||||||||
| Net interest and other income | 1,664 | 1,111 | 906 | 4,671 | 3,095 | 1,576 | 50.92 | % | ||||||||||||||||||
| Total revenue | 21,498 | 16,334 | 24,389 | 103,965 | 103,670 | 295 | 0.28 | % | ||||||||||||||||||
| Provision for credit losses | 81 | (385 | ) | (57 | ) | 117 | (594 | ) | $ | 711 | 119.70 | % | ||||||||||||||
| Expenses | ||||||||||||||||||||||||||
| Salaries and employee benefits | $ | 11,508 | $ | 11,288 | $ | 12,355 | $ | 48,421 | $ | 52,958 | $ | (4,537 | ) | (8.57 | )% | |||||||||||
| Occupancy | 1,621 | 1,600 | 1,638 | 6,640 | 7,158 | (518 | ) | (7.24 | )% | |||||||||||||||||
| Furniture and equipment | 593 | 611 | 604 | 2,387 | 2,544 | (157 | ) | (6.17 | )% | |||||||||||||||||
| Amortization of intangible assets | 637 | 737 | 637 | 2,731 | 2,903 | (172 | ) | (5.92 | )% | |||||||||||||||||
| Other expenses | 7,817 | 7,240 | 8,839 | 33,992 | 34,559 | (567 | ) | (1.64 | )% | |||||||||||||||||
| Total expenses | 22,176 | 21,476 | 24,073 | 94,171 | 100,122 | (5,951 | ) | (5.94 | )% | |||||||||||||||||
| Income (loss) before income tax, corporate allocation, and noncontrolling interest | (759 | ) | (4,757 | ) | 373 | 9,677 | 4,142 | 5,535 | 133.63 | % | ||||||||||||||||
| Corporate allocation | (437 | ) | (352 | ) | (484 | ) | (1,759 | ) | (2,152 | ) | 393 | 18.26 | % | |||||||||||||
| Income (loss) before income tax provision and noncontrolling interest | (1,196 | ) | (5,109 | ) | (111 | ) | 7,918 | 1,990 | 5,928 | 297.89 | % | |||||||||||||||
| Provision for income tax | (216 | ) | (1,072 | ) | 18 | 2,120 | 698 | 1,422 | 203.72 | % | ||||||||||||||||
| Net income (loss) | (980 | ) | (4,037 | ) | (129 | ) | 5,798 | 1,292 | 4,506 | 348.76 | % | |||||||||||||||
| Noncontrolling interest | (113 | ) | 259 | (148 | ) | (947 | ) | (1,421 | ) | 474 | (33.36 | )% | ||||||||||||||
| Net income (loss) attributable to TowneBank | $ | (1,093 | ) | $ | (3,778 | ) | $ | (277 | ) | $ | 4,851 | $ | (129 | ) | $ | 4,980 | 3,860.47 | % | ||||||||
| Efficiency ratio (non-GAAP) | 100.19 | % | 126.97 | % | 96.09 | % | 87.95 | % | 102.51 | % | ||||||||||||||||
| TOWNEBANK | ||||||||||||||||||||||||||
| Insurance Segment Financial Information | ||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||
| Three Months Ended | Year Ended | Increase/(Decrease) | ||||||||||||||||||||||||
| December 31, | September 30, | December 31, | 2024 over 2023 | |||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2024 | 2023 | Amount | Percent | ||||||||||||||||||||
| Commission and fee income | ||||||||||||||||||||||||||
| Property and casualty | $ | 20,576 | $ | 19,795 | $ | 23,157 | $ | 86,679 | $ | 80,054 | $ | 6,625 | 8.28 | % | ||||||||||||
| Employee benefits | 4,335 | 4,332 | 4,483 | 18,047 | 17,726 | 321 | 1.81 | % | ||||||||||||||||||
| Specialized benefit services | 1 | 36 | — | 10 | 481 | (471 | ) | (97.92 | )% | |||||||||||||||||
| Total commissions and fees | 24,912 | 24,163 | 27,640 | 104,736 | 98,261 | 6,475 | 6.59 | % | ||||||||||||||||||
| Contingency and bonus revenue | 2,924 | 1,276 | 2,731 | 13,110 | 10,619 | 2,491 | 23.46 | % | ||||||||||||||||||
| Other income | 221 | 8 | 25 | 263 | 580 | (317 | ) | (54.66 | )% | |||||||||||||||||
| Total revenue | 28,057 | 25,447 | 30,396 | 118,109 | 109,460 | 8,649 | 7.90 | % | ||||||||||||||||||
| Employee commission expense | 3,958 | 4,197 | 4,446 | 17,686 | 18,537 | (851 | ) | (4.59 | )% | |||||||||||||||||
| Revenue, net of commission expense | 24,099 | 21,250 | 25,950 | 100,423 | 90,923 | 9,500 | 10.45 | % | ||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||
| Salaries and employee benefits | $ | 12,761 | $ | 12,174 | $ | 12,620 | $ | 50,436 | $ | 46,467 | $ | 3,969 | 8.54 | % | ||||||||||||
| Occupancy | 836 | 727 | 750 | 3,090 | 3,030 | 60 | 1.98 | % | ||||||||||||||||||
| Furniture and equipment | 170 | 213 | 175 | 809 | 863 | (54 | ) | (6.26 | )% | |||||||||||||||||
| Amortization of intangible assets | 1,431 | 1,438 | 1,421 | 5,660 | 6,098 | (438 | ) | (7.18 | )% | |||||||||||||||||
| Other expenses | 1,871 | 1,853 | 2,126 | 8,173 | 6,467 | 1,706 | 26.38 | % | ||||||||||||||||||
| Total operating expenses | 17,069 | 16,405 | 17,092 | 68,168 | 62,925 | 5,243 | 8.33 | % | ||||||||||||||||||
| Income before income tax and noncontrolling interest | 7,030 | 4,845 | 8,858 | 32,255 | 27,998 | 4,257 | 15.20 | % | ||||||||||||||||||
| Corporate allocation | (735 | ) | (702 | ) | (739 | ) | (2,937 | ) | (2,665 | ) | (272 | ) | 10.21 | % | ||||||||||||
| Income (loss) before income tax, corporate allocation, and noncontrolling interest | 6,295 | 4,143 | 8,119 | 29,318 | 25,333 | 3,985 | 15.73 | % | ||||||||||||||||||
| Provision for income tax expense | 1,613 | 1,071 | 2,079 | 7,523 | 6,521 | 1,002 | 15.37 | % | ||||||||||||||||||
| Net income | 4,682 | 3,072 | 6,040 | 21,795 | 18,812 | 2,983 | 15.86 | % | ||||||||||||||||||
| Noncontrolling interest | — | — | — | — | — | — | N/M | |||||||||||||||||||
| Net income attributable to TowneBank | $ | 4,682 | $ | 3,072 | $ | 6,040 | $ | 21,795 | $ | 18,812 | $ | 2,983 | 15.86 | % | ||||||||||||
| Provision for income taxes | 1,613 | 1,071 | 2,079 | 7,523 | 6,521 | 1,002 | 15.37 | % | ||||||||||||||||||
| Depreciation, amortization and interest expense | 1,550 | 1,588 | 1,550 | 6,182 | 6,702 | (520 | ) | (7.76 | )% | |||||||||||||||||
| EBITDA (non-GAAP) | $ | 7,845 | $ | 5,731 | $ | 9,669 | $ | 35,500 | $ | 32,035 | $ | 3,465 | 10.82 | % | ||||||||||||
| Efficiency ratio (non-GAAP) | 65.48 | % | 70.43 | % | 60.44 | % | 62.39 | % | 62.88 | % | ||||||||||||||||
| TOWNEBANK | |||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures: | |||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Return on average assets (GAAP) | 0.95 | % | 1.00 | % | 0.68 | % | 0.95 | % | 0.92 | % | |||||||||
| Impact of excluding average goodwill and other intangibles and amortization | 0.08 | % | 0.09 | % | 0.09 | % | 0.09 | % | 0.10 | % | |||||||||
| Return on average tangible assets (non-GAAP) | 1.03 | % | 1.09 | % | 0.77 | % | 1.04 | % | 1.02 | % | |||||||||
| Return on average equity (GAAP) | 7.64 | % | 8.12 | % | 5.75 | % | 7.76 | % | 7.78 | % | |||||||||
| Impact of excluding average goodwill and other intangibles and amortization | 3.04 | % | 3.30 | % | 2.78 | % | 3.24 | % | 3.60 | % | |||||||||
| Return on average tangible equity (non-GAAP) | 10.68 | % | 11.42 | % | 8.53 | % | 11.00 | % | 11.38 | % | |||||||||
| Return on average common equity (GAAP) | 7.70 | % | 8.18 | % | 5.79 | % | 7.82 | % | 7.85 | % | |||||||||
| Impact of excluding average goodwill and other intangibles and amortization | 3.09 | % | 3.36 | % | 2.83 | % | 3.29 | % | 3.65 | % | |||||||||
| Return on average tangible common equity (non-GAAP) | 10.79 | % | 11.54 | % | 8.62 | % | 11.11 | % | 11.50 | % | |||||||||
| Book value (GAAP) | $ | 28.43 | $ | 28.59 | $ | 27.24 | $ | 28.43 | $ | 27.24 | |||||||||
| Impact of excluding average goodwill and other intangibles and amortization | (6.88 | ) | (6.94 | ) | (6.96 | ) | (6.88 | ) | (6.96 | ) | |||||||||
| Tangible book value (non-GAAP) | $ | 21.55 | $ | 21.65 | $ | 20.28 | $ | 21.55 | $ | 20.28 | |||||||||
| Efficiency ratio (GAAP) | 71.94 | % | 72.71 | % | 78.36 | % | 72.64 | % | 70.48 | % | |||||||||
| Impact of exclusions | (1.66 | )% | (1.78 | )% | (2.19 | )% | (1.81 | )% | (1.10 | )% | |||||||||
| Efficiency ratio (non-GAAP) | 70.28 | % | 70.93 | % | 76.17 | % | 70.83 | % | 69.38 | % | |||||||||
| Average assets (GAAP) | $ | 17,349,128 | $ | 17,028,141 | $ | 16,683,041 | $ | 17,056,721 | $ | 16,656,686 | |||||||||
| Less: average goodwill and intangible assets | 519,691 | 522,219 | 523,086 | 522,419 | 525,546 | ||||||||||||||
| Average tangible assets (non-GAAP) | $ | 16,829,437 | $ | 16,505,922 | $ | 16,159,955 | $ | 16,534,302 | $ | 16,131,140 | |||||||||
| Average equity (GAAP) | $ | 2,148,111 | $ | 2,105,049 | $ | 1,988,302 | $ | 2,084,993 | $ | 1,974,994 | |||||||||
| Less: average goodwill and intangible assets | 519,691 | 522,219 | 523,086 | 522,419 | 525,546 | ||||||||||||||
| Average tangible equity (non-GAAP) | $ | 1,628,420 | $ | 1,582,830 | $ | 1,465,216 | $ | 1,562,574 | $ | 1,449,448 | |||||||||
| Average common equity (GAAP) | $ | 2,131,778 | $ | 2,088,674 | $ | 1,972,138 | $ | 2,068,671 | $ | 1,959,208 | |||||||||
| Less: average goodwill and intangible assets | 519,691 | 522,219 | 523,086 | 522,419 | 525,546 | ||||||||||||||
| Average tangible common equity (non-GAAP) | $ | 1,612,087 | $ | 1,566,455 | $ | 1,449,052 | $ | 1,546,252 | $ | 1,433,662 | |||||||||
| Net income (GAAP) | $ | 41,265 | $ | 42,949 | $ | 28,804 | $ | 161,757 | $ | 153,715 | |||||||||
| Amortization of intangibles, net of tax | 2,445 | 2,473 | 2,695 | 10,088 | 11,182 | ||||||||||||||
| Tangible net income (non-GAAP) | $ | 43,710 | $ | 45,422 | $ | 31,499 | $ | 171,845 | $ | 164,897 | |||||||||
| Total revenue (GAAP) | $ | 177,160 | $ | 174,518 | $ | 155,546 | $ | 693,750 | $ | 694,122 | |||||||||
| Net (gain) loss on investment securities | — | — | — | (74 | ) | — | |||||||||||||
| Net (gain) loss on equity investment | (218 | ) | (20 | ) | 10 | (238 | ) | (9,377 | ) | ||||||||||
| Total revenue for efficiency calculation (non-GAAP) | $ | 176,942 | $ | 174,498 | $ | 155,556 | $ | 693,438 | $ | 684,745 | |||||||||
| Noninterest expense (GAAP) | $ | 127,441 | $ | 126,900 | $ | 121,895 | $ | 503,916 | $ | 489,222 | |||||||||
| Less: Amortization of intangibles | 3,095 | 3,130 | 3,411 | 12,769 | 14,155 | ||||||||||||||
| Noninterest expense net of amortization (non-GAAP) | $ | 124,346 | $ | 123,770 | $ | 118,484 | $ | 491,147 | $ | 475,067 | |||||||||
| TOWNEBANK | |||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||||||
| Reconcilement of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability | Three Months Ended | ||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||||
| Net income (GAAP) | $ | 41,265 | $ | 42,949 | $ | 42,856 | $ | 34,687 | $ | 28,804 | |||||||||
| Adjustments | |||||||||||||||||||
| Plus: Acquisition-related expenses, net of tax | 250 | 460 | 18 | 564 | 56 | ||||||||||||||
| Plus: Initial provision for acquired loans, net of tax | — | — | — | — | — | ||||||||||||||
| Plus: FDIC special assessment, net of tax | — | — | (310 | ) | 1,021 | 4,083 | |||||||||||||
| Less: Gain on sale of equity investments, net of noncontrolling interest | (99 | ) | (16 | ) | — | 0 | — | (1,846 | ) | ||||||||||
| Core operating earnings, excluding certain items affecting comparability (non-GAAP) | $ | 41,416 | $ | 43,393 | $ | 42,564 | $ | 36,272 | $ | 31,097 | |||||||||
| Weighted average diluted shares | 75,309,989 | 75,141,661 | 75,037,955 | 74,979,501 | 74,793,557 | ||||||||||||||
| Diluted EPS (GAAP) | $ | 0.55 | $ | 0.57 | $ | 0.57 | $ | 0.46 | $ | 0.39 | |||||||||
| Diluted EPS, excluding certain items affecting comparability (non-GAAP) | $ | 0.55 | $ | 0.58 | $ | 0.57 | $ | 0.48 | $ | 0.42 | |||||||||
| Average assets | $ | 17,349,128 | $ | 17,028,141 | $ | 16,982,482 | $ | 16,864,235 | $ | 16,683,041 | |||||||||
| Average tangible equity | $ | 1,628,420 | $ | 1,582,830 | $ | 1,520,500 | $ | 1,517,600 | $ | 1,465,216 | |||||||||
| Average common tangible equity | $ | 1,612,087 | $ | 1,566,455 | $ | 1,504,028 | $ | 1,501,494 | $ | 1,449,052 | |||||||||
| Return on average assets, excluding certain items affecting comparability (non-GAAP) | 0.95 | % | 1.01 | % | 1.01 | % | 0.87 | % | 0.74 | % | |||||||||
| Return on average tangible equity, excluding certain items affecting comparability (non-GAAP) | 10.72 | % | 11.53 | % | 11.95 | % | 10.29 | % | 9.15 | % | |||||||||
| Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP) | 10.82 | % | 11.65 | % | 12.08 | % | 10.40 | % | 9.25 | % | |||||||||
| Efficiency ratio, excluding certain items affecting comparability (non-GAAP) | 71.87 | % | 72.46 | % | 70.85 | % | 74.84 | % | 78.33 | % | |||||||||
| TOWNEBANK | |||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||
| (dollars in thousands, except per share data) | |||||||
| Reconcilement of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability | Year Ended | ||||||
| December 31, | December 31, | ||||||
| 2024 | 2023 | ||||||
| Net income (GAAP) | $ | 161,757 | $ | 153,715 | |||
| Plus: Acquisition-related expenses, net of tax | 1,292 | 7,774 | |||||
| Plus: Initial provision for acquired loans, net of tax | — | 3,166 | |||||
| Plus: FDIC special assessment, net of tax | 711 | 4,083 | |||||
| Less: Gain on sale of equity investments, net of noncontrolling interest | (115 | ) | (7,797 | ) | |||
| Core operating earnings, excluding certain items affecting comparability (non-GAAP) | $ | 163,645 | $ | 160,941 | |||
| Weighted average diluted shares | 75,161,109 | 74,661,576 | |||||
| Diluted EPS (GAAP) | $ | 2.15 | $ | 2.06 | |||
| Diluted EPS, excluding certain items affecting comparability (non-GAAP) | $ | 2.18 | $ | 2.16 | |||
| Average assets | $ | 17,056,721 | $ | 16,656,686 | |||
| Average tangible equity | $ | 1,562,574 | $ | 1,449,448 | |||
| Average tangible common equity | $ | 1,546,252 | $ | 1,433,662 | |||
| Return on average assets, excluding certain items affecting comparability (non-GAAP) | 0.96 | % | 0.97 | % | |||
| Return on average tangible equity, excluding certain items affecting comparability (non-GAAP) | 11.12 | % | 11.88 | % | |||
| Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP) | 11.24 | % | 12.01 | % | |||
| Efficiency ratio, excluding certain items affecting comparability (non-GAAP) | 72.48 | % | 70.04 | % | |||
