SUFFOLK, Va., Oct. 26, 2023 (GLOBE NEWSWIRE) --
TowneBank (the "Company" or "Towne") (NASDAQ: TOWN) today reported
earnings for the quarter ended September 30, 2023 of
$44.86 million, or $0.60 per diluted share, compared to
$50.17 million, or $0.69 per diluted share, for the quarter
ended September 30, 2022.
"We were pleased to deliver a solid performance for the quarter
which reflected the strength of our core deposit franchise,
diversified revenue model and robust capital levels. TowneBank
continues to retain and grow its leading 28% deposit market share
position in our home market in the Hampton Roads region, along with
maintaining a top tier position in the Richmond, Raleigh, and
Charlotte metropolitan markets, which validates our Main Street
banking strategy. Average deposits were up $326 million versus
the sequential quarter, excluding brokered deposits, which allowed
us to reduce higher cost borrowings. Highlighting the value of our
diversified revenue model, fee income benefited from stronger
insurance revenues as we continue to build the intrinsic value of
our insurance agency. While earnings will likely remain under
pressure in the short run, we believe our conservative approach to
balance sheet management will position our Company to benefit from
opportunities despite a challenging operating environment," said G.
Robert Aston, Jr., Executive Chairman.
Highlights for Third Quarter
2023:
- Total revenues were $172.86 million, a decrease of
$6.37 million, or 3.56%, compared to third quarter 2022. A
decline in net interest income of $10.98 million, driven by an
increase in interest expense, was partially offset by an increase
in noninterest income of $4.61 million.
- Loans held for investment were $11.17 billion, an increase
of $0.61 billion, or 5.81%, compared to September 30,
2022, and a decrease of $35.04 million, or 0.31%, compared to
June 30, 2023, 1.24% on an annualized basis. The increase from
the prior year was primarily due to the January 2023 acquisition of
Farmers Bankshares, Inc., ("Farmers"). Excluding loans acquired in
the first quarter, total loans would have increased
$335.47 million, or 3.18%, compared to September 30,
2022.
- Total deposits were $13.88 billion, an increase of
$468.74 million, or 3.49%, compared to third quarter 2022,
driven by the Farmers acquisition. In comparison to June 30,
2023, total deposits increased 0.83%, or $114.14 million,
3.29% on an annualized basis.
- Noninterest bearing deposits decreased 20.26%, to
$4.44 billion, compared to third quarter 2022 and represented
32.02% of total deposits. Compared to the linked quarter,
noninterest bearing deposits decreased 6.91%.
- Annualized return on common shareholders' equity was 9.04%
compared to 10.69% in third quarter 2022. Annualized return on
average tangible common shareholders' equity (non-GAAP) was 13.11%
compared to 15.27% in third quarter 2022.
- Net interest margin was 2.95% for the quarter and taxable
equivalent net interest margin (non-GAAP) was 2.98%, compared to
the prior year quarter net interest margin of 3.28% and taxable
equivalent net interest margin (non-GAAP) of 3.31%.
- The effective tax rate was 17.34% in the quarter compared to
20.08% in third quarter 2022 and 18.41% in the linked
quarter.
"We continue to prudently manage the Company during the
uncertain economic environment. Seasonality in noninterest revenues
and member deposit balances may create some volatility in the next
few quarters, however, we believe in our conservative approach to
growth, liquidity and capital deployment will prove to be the right
strategy for our long-term success," stated William I. Foster III,
President and Chief Executive Officer.
Quarterly Net Interest
Income:
- Net interest income was $113.06 million compared to
$124.04 million for the quarter ended September 30, 2022.
The decrease was driven by increased deposit costs outpacing higher
earning asset yields.
- Tax-equivalent net interest margin (non-GAAP) was 2.98%,
including purchase accounting accretion of 5 basis points,
compared to 3.31%, including purchase accounting accretion of
2 basis points, for third quarter 2022.
- On an average basis, loans held for investment, with a yield of
5.13%, represented 73.45% of earning assets at September 30,
2023 compared to a yield of 4.25% and 69.83% of earning assets in
the third quarter of 2022.
- Total cost of deposits increased to 1.84% from 0.30% for the
quarter ended September 30, 2022. Interest expense on deposits
increased $53.94 million, or 527.28%, over the prior year
quarter driven by the increase in rate.
- Higher mortgage rates and low home sale inventory have
adversely impacted our residential mortgage banking business.
- Average interest-earning assets totaled $15.21 billion at
September 30, 2023 compared to $14.99 billion at
September 30, 2022, an increase of 1.47%.
- Average interest-bearing liabilities totaled
$9.75 billion, an increase of $1.40 billion, or 16.83%
from prior year. Average short term FHLB borrowings were
$248.91 million during the quarter.
Quarterly Provision for Credit
Losses:
- The quarterly provision for credit losses was an expense of
$1.01 million compared to $3.93 million one year ago and
$3.56 million in the linked quarter.
- The allowance for credit losses on loans increased
$1.65 million in third quarter 2023, compared to the linked
quarter. The increase in the allowance was driven by changes in our
portfolio composition, combined with changes to the macroeconomic
forecast scenarios utilized in our models.
- Net loan recoveries were $1.07 million in the quarter
compared to net recoveries of $187 thousand in the prior year
quarter and net charge-offs of $9 thousand in the linked
quarter. Two notable recoveries in third quarter 2023 were related
to charge-offs that occurred in the fourth quarter of 2022 and
first quarter of 2023.
- The ratio of net charge-offs (recoveries) to average loans on
an annualized basis was (0.04)% in third quarter 2023, (0.01)% in
third quarter 2022, and zero percent in the linked quarter.
- The allowance for credit losses on loans represented 1.12% of
total loans at September 30, 2023, 1.02% at September 30,
2022, and 1.10% at June 30, 2023. The allowance for credit
losses on loans was 17.60 times nonperforming loans compared to
20.48 times at September 30, 2022 and 18.09 times at
June 30, 2023.
Quarterly Noninterest
Income:
- Total noninterest income was $59.81 million compared to
$55.20 million in 2022, an increase of $4.61 million, or
8.35%.
- Residential mortgage banking income was $10.65 million
compared to $11.97 million in third quarter 2022. Loan volume
decreased to $520.41 million in third quarter 2023 from
$692.70 million in 2022. Higher mortgage rates coupled with
low home sale inventory levels have adversely impacted
production. Residential purchase activity comprised
95.96% of production volume in the third quarter of 2023 compared
to 93.20% in the prior year quarter.
- Gross margins on residential mortgage sales increased 15 basis
points from 3.02% in third quarter 2022 to 3.17% in the current
quarter.
- Total net insurance commissions increased $4.34 million,
or 22.34%, to $23.78 million in third quarter 2023 compared to
2022. This resulted from increases in property and casualty
commissions, which were driven by organic growth and commissions
from a recent acquisition.
- Property management fee revenue increased 29.41%, or
$2.91 million, to $12.80 million in third quarter 2023
compared to 2022. Reservation income increased compared to the
prior year due to higher rental inventories and income from a
recent acquisition.
Quarterly
Noninterest Expense:
- Total noninterest expense was $117.70 million compared to
$112.03 million in 2022, an increase of $5.67 million, or
5.06%. Increases in salaries and employee benefits of
$1.80 million, FDIC and other insurance of $1.37 million,
software expense of $1.54 million, and amortization expense of
$0.97 million were the primary sources of the increase.
- Salaries and benefits expense increases were driven by annual
base salary adjustments that went into effect July 2023 and an
increase in the year-over-year number of employees, primarily
related to the Farmers Bankshares, Inc. acquisition.
- FDIC and other insurance increased due to an increased
assessment rate in 2023.
- Software expense increased due to growth related cost increases
and a number of ongoing projects throughout the Company.
- Amortization expense increased driven by the recent Farmers
Bankshares, Inc. acquisition.
Consolidated Balance Sheet
Highlights:
- Total assets were $16.68 billion for the quarter ended
September 30, 2023, a $544.72 million decrease compared
to $17.23 billion at June 30, 2023. Total assets
increased $728.56 million, or 4.57%, from $15.95 billion
at September 30, 2022.
- Loans held for investment increased $0.61 billion, or
5.81%, compared to prior year but decreased $35.04 million, or
0.31%, compared to the linked quarter, 1.24% on an annualized
basis.
- Mortgage loans held for sale increased $23.03 million, or
13.95%, compared to prior year but declined $41.45 million, or
18.06%, compared to the linked quarter.
- Total deposits increased $468.74 million, or 3.49%,
compared to prior year, primarily in interest- bearing demand and
time deposits. In the linked quarter comparison, total deposits
increased $114.14 million, or 3.29% on an annualized
basis.
- Total borrowings increased $86.75 million, or 27.09%, over
third quarter 2022 but decreased $0.65 billion, or 61.59%,
compared to the linked quarter. FHLB advances, which are included
in total borrowings, decreased $0.65 billion in third quarter
2023, compared to the linked quarter.
Investment
Securities:
- Total investment securities were $2.54 billion compared to
$2.61 billion at June 30, 2023 and $2.45 billion at
September 30, 2022. The weighted average duration of the
portfolio at September 30, 2023 was 3.3 years. The carrying
value of the available for sale debt securities portfolio included
net unrealized losses of $238.52 million at September 30,
2023, compared to $195.98 million at June 30, 2023 and
$199.84 million at September 30, 2022, with the increases
related to market valuation adjustments due to rising interest
rates.
Loans and Asset
Quality:
- Total loans held for investment were $11.17 billion at
September 30, 2023 compared to $11.21 billion at
June 30, 2023 and $10.56 billion at September 30,
2022.
- Total loans for commercial real estate non-owner occupied
office buildings were $714.20 million at September 30, 2023.
The average loan balance was $1.83 million with less than
$1.0 million total criticized or classified loans.
- Nonperforming assets were $7.88 million, or 0.05% of total
assets, compared to $5.44 million, or 0.03%, at
September 30, 2022.
- Nonperforming loans were 0.06% of period end loans compared to
0.05% at September 30, 2022.
- Other real estate owned increased to $766 thousand from
$186 thousand at September 30, 2022.
Deposits and
Borrowings:
- Total deposits were $13.88 billion compared to
$13.77 billion at June 30, 2023 and $13.41 billion
at September 30, 2022.
- Total loans held for investment to deposits was 80.49% compared
to 81.41% at June 30, 2023 and 78.73% at September 30,
2022.
- Noninterest-bearing deposits were 32.02% of total deposits at
September 30, 2023 compared to 34.68% at June 30, 2023
and 41.56% at September 30, 2022. Noninterest-bearing deposits
declined $1.13 billion, or 20.26%, compared to September 30,
2022, primarily in commercial and escrow accounts.
- Total borrowings were $0.41 billion compared to
$1.06 billion at June 30, 2023 and $0.32 billion at
September 30, 2022.
Capital:
- Common equity tier 1 capital ratio of 12.19%.
- Tier 1 leverage capital ratio of 10.06%.
- Tier 1 risk-based capital ratio of 12.31%.
- Total risk-based capital ratio of 15.09%.
- Book value per common share was $26.28 compared to $26.36 at
June 30, 2023 and $25.08 at September 30, 2022.
- Tangible book value per common share (non-GAAP) was $19.28
compared to $19.31 at June 30, 2023 and $18.17 at
September 30, 2022.
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.
TowneBank operates over 45 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 $16.68 billion as of
September 30, 2023, 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: fully
tax-equivalent net interest margin, core operating earnings, core
net income, 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
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; unusual and
infrequently occurring events, such as weather-related or natural
disasters, acts of war or terrorism, or public health events (such
as the COVID-19 pandemic); changes in the legislative or regulatory
environment, including changes in accounting standards and tax
laws, that may adversely affect our business; costs or difficulties
related to the integration of the businesses we have acquired may
be greater than expected; expected 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, 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, 2022, our Quarterly Report on Form 10-Q for the
period ended June 30, 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 |
| |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
| |
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
Income and Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
$ |
172,864 |
|
|
$ |
181,568 |
|
|
$ |
184,144 |
|
|
$ |
175,307 |
|
|
$ |
179,236 |
|
| |
Net income |
|
44,745 |
|
|
|
43,368 |
|
|
|
38,478 |
|
|
|
46,494 |
|
|
|
50,671 |
|
| |
Net income available to common
shareholders |
|
44,862 |
|
|
|
41,716 |
|
|
|
38,333 |
|
|
|
46,685 |
|
|
|
50,169 |
|
| |
Net income per common share -
diluted |
|
0.60 |
|
|
|
0.56 |
|
|
|
0.52 |
|
|
|
0.64 |
|
|
|
0.69 |
|
| |
Book value per common
share |
|
26.28 |
|
|
|
26.36 |
|
|
|
26.40 |
|
|
|
25.73 |
|
|
|
25.08 |
|
| |
Book value per common share -
tangible(non-GAAP) |
|
19.28 |
|
|
|
19.31 |
|
|
|
19.04 |
|
|
|
18.84 |
|
|
|
18.17 |
|
| |
Return on average assets |
|
1.06 |
% |
|
|
0.99 |
% |
|
|
0.95 |
% |
|
|
1.16 |
% |
|
|
1.22 |
% |
| |
Return on average assets -
tangible(non-GAAP) |
|
1.17 |
% |
|
|
1.10 |
% |
|
|
1.05 |
% |
|
|
1.25 |
% |
|
|
1.31 |
% |
| |
Return on average equity |
|
8.96 |
% |
|
|
8.46 |
% |
|
|
7.99 |
% |
|
|
9.98 |
% |
|
|
10.60 |
% |
| |
Return on average equity -
tangible(non-GAAP) |
|
12.97 |
% |
|
|
12.35 |
% |
|
|
11.71 |
% |
|
|
14.26 |
% |
|
|
15.08 |
% |
| |
Return on average common
equity |
|
9.04 |
% |
|
|
8.52 |
% |
|
|
8.05 |
% |
|
|
10.07 |
% |
|
|
10.69 |
% |
| |
Return on average common
equity - tangible(non-GAAP) |
|
13.11 |
% |
|
|
12.48 |
% |
|
|
11.83 |
% |
|
|
14.44 |
% |
|
|
15.27 |
% |
| |
Noninterest income as a
percentage of total revenue |
|
34.60 |
% |
|
|
37.43 |
% |
|
|
33.00 |
% |
|
|
26.54 |
% |
|
|
30.80 |
% |
|
Regulatory Capital Ratios (1): |
|
|
|
|
|
|
|
|
|
| |
Common equity tier 1 |
|
12.19 |
% |
|
|
11.99 |
% |
|
|
11.68 |
% |
|
|
11.92 |
% |
|
|
11.92 |
% |
| |
Tier 1 |
|
12.31 |
% |
|
|
12.11 |
% |
|
|
11.80 |
% |
|
|
12.04 |
% |
|
|
12.05 |
% |
| |
Total |
|
15.09 |
% |
|
|
14.88 |
% |
|
|
14.55 |
% |
|
|
14.80 |
% |
|
|
14.80 |
% |
| |
Tier 1 leverage ratio |
|
10.06 |
% |
|
|
9.85 |
% |
|
|
9.86 |
% |
|
|
9.87 |
% |
|
|
9.52 |
% |
|
Asset Quality: |
|
|
|
|
|
|
|
|
|
| |
Allowance for credit losses on loans to nonperforming loans |
17.60x |
|
18.09x |
|
12.87x |
|
17.67x |
|
20.48x |
| |
Allowance for credit losses on
loans to period end loans |
|
1.12 |
% |
|
|
1.10 |
% |
|
|
1.07 |
% |
|
|
1.03 |
% |
|
|
1.02 |
% |
| |
Nonperforming loans to period
end loans |
|
0.06 |
% |
|
|
0.06 |
% |
|
|
0.08 |
% |
|
|
0.06 |
% |
|
|
0.05 |
% |
| |
Nonperforming assets to period
end assets |
|
0.05 |
% |
|
|
0.05 |
% |
|
|
0.06 |
% |
|
|
0.04 |
% |
|
|
0.03 |
% |
| |
Net charge-offs (recoveries)
to average loans (annualized) |
(0.04)% |
|
|
— |
% |
|
|
0.14 |
% |
|
|
0.11 |
% |
|
(0.01)% |
| |
Net charge-offs
(recoveries) |
$ |
(1,074 |
) |
|
$ |
9 |
|
|
$ |
3,874 |
|
|
$ |
2,904 |
|
|
$ |
(187 |
) |
| |
|
|
|
|
|
|
|
|
|
|
| |
Nonperforming loans |
$ |
7,110 |
|
|
$ |
6,827 |
|
|
$ |
9,322 |
|
|
$ |
6,273 |
|
|
$ |
5,250 |
|
| |
Former bank premises |
|
— |
|
|
|
1,782 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
Foreclosed property |
|
766 |
|
|
|
738 |
|
|
|
564 |
|
|
|
560 |
|
|
|
186 |
|
| |
Total nonperforming
assets |
$ |
7,876 |
|
|
$ |
9,347 |
|
|
$ |
9,886 |
|
|
$ |
6,833 |
|
|
$ |
5,436 |
|
| |
Loans past due 90 days and
still accruing interest |
$ |
970 |
|
|
$ |
360 |
|
|
$ |
206 |
|
|
$ |
324 |
|
|
$ |
725 |
|
| |
Allowance for credit losses on
loans |
$ |
125,159 |
|
|
$ |
123,513 |
|
|
$ |
120,002 |
|
|
$ |
110,816 |
|
|
$ |
107,497 |
|
|
Mortgage Banking: |
|
|
|
|
|
|
|
|
|
| |
Loans originated, mortgage |
$ |
348,387 |
|
|
$ |
409,050 |
|
|
$ |
280,401 |
|
|
$ |
299,298 |
|
|
$ |
458,254 |
|
| |
Loans originated, joint
venture |
|
172,021 |
|
|
|
207,450 |
|
|
|
135,818 |
|
|
|
157,511 |
|
|
|
234,443 |
|
| |
Total loans originated |
$ |
520,408 |
|
|
$ |
616,500 |
|
|
$ |
416,219 |
|
|
$ |
456,809 |
|
|
$ |
692,697 |
|
| |
Number of loans
originated |
|
1,487 |
|
|
|
1,715 |
|
|
|
1,249 |
|
|
|
1,355 |
|
|
|
1,983 |
|
| |
Number of originators |
|
192 |
|
|
|
196 |
|
|
|
194 |
|
|
|
186 |
|
|
|
194 |
|
| |
Purchase % |
|
95.96 |
% |
|
|
96.32 |
% |
|
|
94.99 |
% |
|
|
95.08 |
% |
|
|
93.20 |
% |
| |
Loans sold |
$ |
567,291 |
|
|
$ |
525,078 |
|
|
$ |
346,288 |
|
|
$ |
483,254 |
|
|
$ |
701,908 |
|
| |
Rate lock asset |
$ |
1,348 |
|
|
$ |
1,551 |
|
|
$ |
1,435 |
|
|
$ |
482 |
|
|
$ |
859 |
|
| |
Gross realized gain on sales
and fees as a % of loans originated |
|
3.17 |
% |
|
|
2.96 |
% |
|
|
3.11 |
% |
|
|
2.93 |
% |
|
|
3.02 |
% |
|
Other Ratios: |
|
|
|
|
|
|
|
|
|
| |
Net interest margin |
|
2.95 |
% |
|
|
2.98 |
% |
|
|
3.36 |
% |
|
|
3.51 |
% |
|
|
3.28 |
% |
| |
Net interest margin-fully tax
equivalent(non-GAAP) |
|
2.98 |
% |
|
|
3.01 |
% |
|
|
3.39 |
% |
|
|
3.53 |
% |
|
|
3.31 |
% |
| |
Average earning assets/total
average assets |
|
90.73 |
% |
|
|
90.96 |
% |
|
|
90.98 |
% |
|
|
91.51 |
% |
|
|
91.92 |
% |
| |
Average loans/average
deposits |
|
80.75 |
% |
|
|
83.72 |
% |
|
|
82.40 |
% |
|
|
80.14 |
% |
|
|
76.82 |
% |
| |
Average noninterest
deposits/total average deposits |
|
33.50 |
% |
|
|
36.07 |
% |
|
|
38.35 |
% |
|
|
41.07 |
% |
|
|
41.77 |
% |
| |
Period end equity/period end
total assets |
|
11.90 |
% |
|
|
11.56 |
% |
|
|
11.89 |
% |
|
|
11.92 |
% |
|
|
11.56 |
% |
| |
Efficiency
ratio(non-GAAP) |
|
66.21 |
% |
|
|
70.41 |
% |
|
|
65.64 |
% |
|
|
61.99 |
% |
|
|
61.03 |
% |
| |
(1)
Current reporting period regulatory capital ratios are
preliminary. |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
TOWNEBANK |
|
Selected Data (unaudited) |
|
(dollars in thousands) |
| |
|
Investment Securities |
|
|
|
|
|
|
% Change |
| |
Q3 |
|
Q3 |
|
Q2 |
|
Q3 23 vs. |
|
Q3 23 vs. |
| Available-for-sale
securities, at fair value |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
Q3 22 |
|
Q2 23 |
| U.S. agency securities |
$ |
300,161 |
|
|
$ |
331,297 |
|
|
$ |
318,354 |
|
|
(9.40)% |
|
(5.71)% |
| U.S. Treasury notes |
|
26,721 |
|
|
|
26,399 |
|
|
|
26,874 |
|
|
1.22 |
% |
|
(0.57)% |
| Municipal securities |
|
484,587 |
|
|
|
426,720 |
|
|
|
503,792 |
|
|
13.56 |
% |
|
(3.81)% |
| Trust preferred and other
corporate securities |
|
74,024 |
|
|
|
79,501 |
|
|
|
71,116 |
|
|
(6.89)% |
|
4.09 |
% |
| Mortgage-backed securities
issued by GSE |
|
1,079,303 |
|
|
|
1,027,331 |
|
|
|
1,086,947 |
|
|
5.06 |
% |
|
(0.70)% |
|
Allowance for credit losses |
|
(1,343 |
) |
|
|
(1,112 |
) |
|
|
(1,232 |
) |
|
20.77 |
% |
|
9.01 |
% |
| Total |
$ |
1,963,453 |
|
|
$ |
1,890,136 |
|
|
$ |
2,005,851 |
|
|
3.88 |
% |
|
(2.11)% |
| Gross
unrealized gains (losses) reflected in financial
statements |
|
|
|
|
|
|
| Total gross unrealized
gains |
$ |
475 |
|
|
$ |
1,292 |
|
|
$ |
975 |
|
|
(63.24)% |
|
(51.28)% |
| Total gross unrealized
losses |
|
(238,993 |
) |
|
|
(201,127 |
) |
|
|
(196,954 |
) |
|
18.83 |
% |
|
21.34 |
% |
| Net unrealized gains (losses)
and other adjustments on AFS securities |
$ |
(238,518 |
) |
|
$ |
(199,835 |
) |
|
$ |
(195,979 |
) |
|
19.36 |
% |
|
21.71 |
% |
| Held-to-maturity
securities, at amortized cost |
|
|
|
|
|
|
|
|
|
| U.S. agency securities |
$ |
101,659 |
|
|
$ |
100,905 |
|
|
$ |
101,469 |
|
|
0.75 |
% |
|
0.19 |
% |
| U.S. Treasury notes |
|
433,015 |
|
|
|
434,148 |
|
|
|
433,298 |
|
|
(0.26)% |
|
(0.07)% |
| Municipal securities |
|
5,249 |
|
|
|
5,159 |
|
|
|
5,226 |
|
|
1.74 |
% |
|
0.44 |
% |
| Trust preferred corporate
securities |
|
2,185 |
|
|
|
2,235 |
|
|
|
2,198 |
|
|
(2.24)% |
|
(0.59)% |
| Mortgage-backed securities
issued by GSE |
|
5,746 |
|
|
|
6,298 |
|
|
|
5,826 |
|
|
(8.76)% |
|
(1.37)% |
| Allowance for credit
losses |
|
(85 |
) |
|
|
(83 |
) |
|
|
(87 |
) |
|
2.41 |
% |
|
(2.30)% |
| Total |
$ |
547,769 |
|
|
$ |
548,662 |
|
|
$ |
547,930 |
|
|
(0.16)% |
|
(0.03)% |
| |
|
|
|
|
|
|
|
|
|
| Total gross unrealized
gains |
$ |
82 |
|
|
$ |
153 |
|
|
$ |
272 |
|
|
(46.41)% |
|
(69.85)% |
| Total gross unrealized
losses |
|
(23,505 |
) |
|
|
(31,116 |
) |
|
|
(25,914 |
) |
|
(24.46)% |
|
(9.30)% |
| Net unrealized gains (losses)
in HTM securities |
$ |
(23,423 |
) |
|
$ |
(30,963 |
) |
|
$ |
(25,642 |
) |
|
(24.35)% |
|
(8.65)% |
| Total
unrealized (losses) gains on AFS and HTM securities |
$ |
(261,941 |
) |
|
$ |
(230,798 |
) |
|
$ |
(221,621 |
) |
|
13.49 |
% |
|
18.19 |
% |
|
|
|
|
|
|
|
|
% Change |
| Loans Held For
Investment |
Q3 |
|
Q3 |
|
Q2 |
|
Q3 23 vs. |
|
Q3 23 vs. |
| |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
Q3 22 |
|
Q2 23 |
| Real estate - construction and
development |
$ |
1,325,976 |
|
|
$ |
1,324,831 |
|
|
$ |
1,364,575 |
|
|
0.09 |
% |
|
(2.83)% |
| Commercial real estate - owner
occupied |
|
1,686,888 |
|
|
|
1,590,371 |
|
|
|
1,687,261 |
|
|
6.07 |
% |
|
(0.02)% |
| Commercial real estate - non
owner occupied |
|
3,025,985 |
|
|
|
2,799,363 |
|
|
|
3,034,548 |
|
|
8.10 |
% |
|
(0.28)% |
| Real estate - multifamily |
|
542,611 |
|
|
|
458,803 |
|
|
|
520,464 |
|
|
18.27 |
% |
|
4.26 |
% |
| Residential 1-4 family |
|
1,818,843 |
|
|
|
1,567,024 |
|
|
|
1,790,225 |
|
|
16.07 |
% |
|
1.60 |
% |
| HELOC |
|
371,861 |
|
|
|
388,305 |
|
|
|
380,501 |
|
|
(4.23)% |
|
(2.27)% |
|
Commercial and industrial business (C&I) |
|
1,237,524 |
|
|
|
1,251,350 |
|
|
|
1,259,282 |
|
|
(1.10)% |
|
(1.73)% |
|
Government |
|
523,456 |
|
|
|
520,198 |
|
|
|
520,994 |
|
|
0.63 |
% |
|
0.47 |
% |
|
Indirect |
|
548,621 |
|
|
|
572,710 |
|
|
|
562,161 |
|
|
(4.21)% |
|
(2.41)% |
| Consumer loans and other |
|
91,206 |
|
|
|
86,656 |
|
|
|
88,003 |
|
|
5.25 |
% |
|
3.64 |
% |
| Total |
$ |
11,172,971 |
|
|
$ |
10,559,611 |
|
|
$ |
11,208,014 |
|
|
5.81 |
% |
|
(0.31)% |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
% Change |
|
Deposits |
Q3 |
|
Q3 |
|
Q2 |
|
Q3 23 vs. |
|
Q3 23 vs. |
| |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
Q3 22 |
|
Q2 23 |
| Noninterest-bearing
demand |
$ |
4,444,861 |
|
|
$ |
5,574,528 |
|
|
$ |
4,774,830 |
|
|
(20.26)% |
|
(6.91)% |
| Interest-bearing: |
|
|
|
|
|
|
|
|
|
|
Demand and money market accounts |
|
6,764,415 |
|
|
|
6,042,417 |
|
|
|
6,529,336 |
|
|
11.95 |
% |
|
3.60 |
% |
|
Savings |
|
350,031 |
|
|
|
387,622 |
|
|
|
361,891 |
|
|
(9.70)% |
|
(3.28)% |
|
Certificates of deposits |
|
2,321,498 |
|
|
|
1,407,495 |
|
|
|
2,100,604 |
|
|
64.94 |
% |
|
10.52 |
% |
| Total |
|
13,880,805 |
|
|
|
13,412,062 |
|
|
|
13,766,661 |
|
|
3.49 |
% |
|
0.83 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOWNEBANK |
|
Average Balances, Yields and Rate Paid
(unaudited) |
|
(dollars in thousands) |
|
|
| |
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
| |
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
| |
|
|
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) |
$ |
11,169,924 |
|
|
$ |
144,457 |
|
|
5.13 |
% |
|
$ |
11,209,641 |
|
|
$ |
139,814 |
|
|
5.00 |
% |
|
$ |
10,465,441 |
|
|
$ |
112,225 |
|
|
4.25 |
% |
|
Taxable investment securities |
|
2,373,731 |
|
|
|
18,645 |
|
|
3.14 |
% |
|
|
2,450,393 |
|
|
|
17,195 |
|
|
2.81 |
% |
|
|
2,385,218 |
|
|
|
12,943 |
|
|
2.17 |
% |
|
Tax-exempt investment securities |
|
206,639 |
|
|
|
1,993 |
|
|
3.86 |
% |
|
|
209,728 |
|
|
|
2,003 |
|
|
3.82 |
% |
|
|
147,184 |
|
|
|
1,252 |
|
|
3.41 |
% |
| Total securities |
|
2,580,370 |
|
|
|
20,638 |
|
|
3.20 |
% |
|
|
2,660,121 |
|
|
|
19,198 |
|
|
2.89 |
% |
|
|
2,532,402 |
|
|
|
14,195 |
|
|
2.24 |
% |
| Interest-bearing deposits |
|
1,230,582 |
|
|
|
15,031 |
|
|
4.85 |
% |
|
|
1,262,692 |
|
|
|
14,488 |
|
|
4.60 |
% |
|
|
1,800,798 |
|
|
|
9,509 |
|
|
2.09 |
% |
| Loans held for sale |
|
227,426 |
|
|
|
3,928 |
|
|
6.91 |
% |
|
|
172,679 |
|
|
|
2,547 |
|
|
5.90 |
% |
|
|
188,737 |
|
|
|
2,446 |
|
|
5.18 |
% |
|
Total earning assets |
|
15,208,302 |
|
|
|
184,054 |
|
|
4.80 |
% |
|
|
15,305,133 |
|
|
|
176,047 |
|
|
4.61 |
% |
|
|
14,987,378 |
|
|
|
138,375 |
|
|
3.66 |
% |
| Less: allowance for credit
losses |
|
(125,553 |
) |
|
|
|
|
|
|
(121,140 |
) |
|
|
|
|
|
|
(104,178 |
) |
|
|
|
|
| Total nonearning assets |
|
1,680,110 |
|
|
|
|
|
|
|
1,642,972 |
|
|
|
|
|
|
|
1,421,094 |
|
|
|
|
|
|
Total assets |
$ |
16,762,859 |
|
|
|
|
|
|
$ |
16,826,965 |
|
|
|
|
|
|
$ |
16,304,294 |
|
|
|
|
|
| Liabilities and
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand and money market |
$ |
6,605,853 |
|
|
$ |
41,381 |
|
|
2.49 |
% |
|
$ |
6,220,394 |
|
|
$ |
32,058 |
|
|
2.07 |
% |
|
$ |
6,084,753 |
|
|
$ |
6,542 |
|
|
0.43 |
% |
|
Savings |
|
356,116 |
|
|
|
938 |
|
|
1.05 |
% |
|
|
371,455 |
|
|
|
895 |
|
|
0.97 |
% |
|
|
391,437 |
|
|
|
628 |
|
|
0.64 |
% |
|
Certificates of deposit |
|
2,236,102 |
|
|
|
21,852 |
|
|
3.88 |
% |
|
|
1,968,623 |
|
|
|
15,718 |
|
|
3.20 |
% |
|
|
1,456,746 |
|
|
|
3,060 |
|
|
0.83 |
% |
| Total interest-bearing
deposits |
|
9,198,071 |
|
|
|
64,171 |
|
|
2.77 |
% |
|
|
8,560,472 |
|
|
|
48,671 |
|
|
2.28 |
% |
|
|
7,932,936 |
|
|
|
10,230 |
|
|
0.51 |
% |
| Borrowings |
|
299,105 |
|
|
|
3,382 |
|
|
4.42 |
% |
|
|
863,255 |
|
|
|
10,345 |
|
|
4.74 |
% |
|
|
94,411 |
|
|
|
139 |
|
|
0.58 |
% |
| Subordinated debt, net |
|
255,446 |
|
|
|
2,245 |
|
|
3.52 |
% |
|
|
255,264 |
|
|
|
2,236 |
|
|
3.50 |
% |
|
|
320,518 |
|
|
|
3,117 |
|
|
3.89 |
% |
|
Total interest-bearing liabilities |
|
9,752,622 |
|
|
|
69,798 |
|
|
2.84 |
% |
|
|
9,678,991 |
|
|
|
61,252 |
|
|
2.54 |
% |
|
|
8,347,865 |
|
|
|
13,486 |
|
|
0.64 |
% |
| Demand deposits |
|
4,633,856 |
|
|
|
|
|
|
|
4,829,395 |
|
|
|
|
|
|
|
5,690,020 |
|
|
|
|
|
| Other noninterest-bearing
liabilities |
|
389,912 |
|
|
|
|
|
|
|
339,966 |
|
|
|
|
|
|
|
387,835 |
|
|
|
|
|
|
Total liabilities |
|
14,776,390 |
|
|
|
|
|
|
|
14,848,352 |
|
|
|
|
|
|
|
14,425,720 |
|
|
|
|
|
| Shareholders’ equity |
|
1,986,469 |
|
|
|
|
|
|
|
1,978,613 |
|
|
|
|
|
|
|
1,878,574 |
|
|
|
|
|
| Total liabilities and
equity |
$ |
16,762,859 |
|
|
|
|
|
|
$ |
16,826,965 |
|
|
|
|
|
|
$ |
16,304,294 |
|
|
|
|
|
|
Net interest income (tax-equivalent basis) (4) |
|
|
$ |
114,256 |
|
|
|
|
|
|
$ |
114,795 |
|
|
|
|
|
|
$ |
124,889 |
|
|
|
|
Reconciliation of Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent basis adjustment |
|
|
|
(1,198 |
) |
|
|
|
|
|
|
(1,184 |
) |
|
|
|
|
|
|
(851 |
) |
|
|
| Net interest income
(GAAP) |
|
|
$ |
113,058 |
|
|
|
|
|
|
$ |
113,611 |
|
|
|
|
|
|
$ |
124,038 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest rate spread
(2)(4) |
|
|
|
|
1.96 |
% |
|
|
|
|
|
2.07 |
% |
|
|
|
|
|
3.02 |
% |
|
Interest expense as a percent of average earning assets |
|
|
|
1.82 |
% |
|
|
|
|
|
1.61 |
% |
|
|
|
|
|
0.36 |
% |
| Net interest
margin (tax equivalent basis) (3)(4) |
|
|
|
2.98 |
% |
|
|
|
|
|
3.01 |
% |
|
|
|
|
|
3.31 |
% |
| Total cost of deposits |
|
|
|
|
1.84 |
% |
|
|
|
|
|
1.46 |
% |
|
|
|
|
|
0.30 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Yields and interest income are presented on a
taxable-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) |
|
|
| |
Nine Months Ended |
|
Nine Months Ended |
| |
September 30, 2023 |
|
September 30, 2022 |
| |
|
|
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) |
$ |
11,159,329 |
|
|
$ |
417,808 |
|
|
5.01 |
% |
|
$ |
10,113,980 |
|
|
$ |
309,283 |
|
|
4.09 |
% |
|
Taxable investment securities |
|
2,420,634 |
|
|
|
52,656 |
|
|
2.90 |
% |
|
|
2,259,940 |
|
|
|
33,344 |
|
|
1.97 |
% |
|
Tax-exempt investment securities |
|
201,535 |
|
|
|
5,883 |
|
|
3.89 |
% |
|
|
130,196 |
|
|
|
3,090 |
|
|
3.16 |
% |
| Total securities |
|
2,622,169 |
|
|
|
58,539 |
|
|
2.98 |
% |
|
|
2,390,136 |
|
|
|
36,434 |
|
|
2.03 |
% |
| Interest-bearing deposits |
|
1,179,952 |
|
|
|
40,168 |
|
|
4.55 |
% |
|
|
2,362,155 |
|
|
|
15,472 |
|
|
0.88 |
% |
| Loans held for sale |
|
168,822 |
|
|
|
8,079 |
|
|
6.38 |
% |
|
|
225,777 |
|
|
|
7,038 |
|
|
4.16 |
% |
| Total earning assets |
|
15,130,272 |
|
|
|
524,594 |
|
|
4.64 |
% |
|
|
15,092,048 |
|
|
|
368,227 |
|
|
3.26 |
% |
|
Less: allowance for credit losses |
|
(120,420 |
) |
|
|
|
|
|
|
(104,733 |
) |
|
|
|
|
| Total nonearning assets |
|
1,637,952 |
|
|
|
|
|
|
|
1,394,691 |
|
|
|
|
|
|
Total assets |
$ |
16,647,804 |
|
|
|
|
|
|
$ |
16,382,006 |
|
|
|
|
|
| Liabilities and
Equity: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
|
|
Demand and money market |
$ |
6,349,422 |
|
|
$ |
96,742 |
|
|
2.04 |
% |
|
$ |
6,203,889 |
|
|
$ |
11,898 |
|
|
0.26 |
% |
|
Savings |
|
376,282 |
|
|
|
2,676 |
|
|
0.95 |
% |
|
|
387,290 |
|
|
|
1,664 |
|
|
0.57 |
% |
|
Certificates of deposit |
|
1,964,718 |
|
|
|
47,358 |
|
|
3.22 |
% |
|
|
1,440,661 |
|
|
|
7,134 |
|
|
0.66 |
% |
| Total interest-bearing
deposits |
|
8,690,422 |
|
|
|
146,776 |
|
|
2.26 |
% |
|
|
8,031,840 |
|
|
|
20,696 |
|
|
0.34 |
% |
| Borrowings |
|
505,856 |
|
|
|
17,644 |
|
|
4.60 |
% |
|
|
119,336 |
|
|
|
412 |
|
|
0.46 |
% |
| Subordinated debt, net |
|
253,612 |
|
|
|
6,650 |
|
|
3.50 |
% |
|
|
401,195 |
|
|
|
12,328 |
|
|
4.10 |
% |
| Total interest-bearing
liabilities |
|
9,449,890 |
|
|
|
171,070 |
|
|
2.42 |
% |
|
|
8,552,371 |
|
|
|
33,436 |
|
|
0.52 |
% |
| Demand deposits |
|
4,873,945 |
|
|
|
|
|
|
|
5,569,186 |
|
|
|
|
|
| Other noninterest-bearing
liabilities |
|
353,459 |
|
|
|
|
|
|
|
374,794 |
|
|
|
|
|
|
Total liabilities |
|
14,677,294 |
|
|
|
|
|
|
|
14,496,351 |
|
|
|
|
|
| Shareholders’ equity |
|
1,970,510 |
|
|
|
|
|
|
|
1,885,655 |
|
|
|
|
|
|
Total liabilities and equity |
$ |
16,647,804 |
|
|
|
|
|
|
$ |
16,382,006 |
|
|
|
|
|
| Net interest income
(tax-equivalent basis)(4) |
|
|
$ |
353,524 |
|
|
|
|
|
|
$ |
334,791 |
|
|
|
|
Reconciliation of Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent basis adjustment |
|
|
|
(3,477 |
) |
|
|
|
|
|
|
(2,209 |
) |
|
|
| Net interest income
(GAAP) |
|
|
$ |
350,047 |
|
|
|
|
|
|
$ |
332,582 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Interest rate spread
(2)(4) |
|
|
|
|
2.22 |
% |
|
|
|
|
|
2.74 |
% |
| Interest expense
as a percent of average earning assets |
|
|
|
1.51 |
% |
|
|
|
|
|
0.30 |
% |
| Net interest
margin (tax equivalent basis) (3)(4) |
|
|
|
3.12 |
% |
|
|
|
|
|
2.97 |
% |
| Total cost of deposits |
|
|
|
|
1.45 |
% |
|
|
|
|
|
0.20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Yields and
interest income are presented on a taxable-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 share data) |
|
|
|
| |
|
|
| |
September 30, |
|
December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
| |
(unaudited) |
|
(audited) |
|
ASSETS |
|
|
|
| Cash and due from banks |
$ |
83,949 |
|
|
$ |
55,381 |
|
| Interest-bearing deposits at
FRB - Richmond |
|
1,029,276 |
|
|
|
1,000,205 |
|
| Federal funds sold and
interest-bearing deposits in financial institutions |
|
102,527 |
|
|
|
97,244 |
|
|
Total Cash and Cash Equivalents |
|
1,215,752 |
|
|
|
1,152,830 |
|
| Securities available for sale,
at fair value (amortized cost of $2,203,314 and $2,033,040, and
allowance for credit losses of $1,343 and $1,086 at
September 30, 2023 and December 31, 2022,
respectively) |
|
1,963,453 |
|
|
|
1,840,902 |
|
| Securities held to maturity,
at amortized cost (fair value $524,431 and $518,993 at
September 30, 2023 and December 31, 2022,
respectively) |
|
547,854 |
|
|
|
548,475 |
|
|
Less: allowance for credit losses |
|
(85 |
) |
|
|
(83 |
) |
|
Securities held to maturity, net of allowance for credit
losses |
|
547,769 |
|
|
|
548,392 |
|
| Other equity securities |
|
14,062 |
|
|
|
6,424 |
|
| FHLB stock |
|
16,634 |
|
|
|
9,617 |
|
|
Total Securities |
|
2,541,918 |
|
|
|
2,405,335 |
|
| Mortgage loans held for
sale |
|
188,048 |
|
|
|
102,339 |
|
| Loans, net of unearned income
and deferred costs |
|
11,172,971 |
|
|
|
10,794,602 |
|
|
Less: allowance for credit losses |
|
(125,159 |
) |
|
|
(110,816 |
) |
|
Net Loans |
|
11,047,812 |
|
|
|
10,683,786 |
|
| Premises and equipment,
net |
|
335,522 |
|
|
|
304,802 |
|
| Goodwill |
|
456,684 |
|
|
|
458,482 |
|
| Other intangible assets,
net |
|
67,496 |
|
|
|
43,163 |
|
| BOLI |
|
275,240 |
|
|
|
258,069 |
|
| Other assets |
|
551,884 |
|
|
|
436,461 |
|
|
TOTAL ASSETS |
$ |
16,680,356 |
|
|
$ |
15,845,267 |
|
| |
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
| Deposits: |
|
|
|
|
Noninterest-bearing demand |
$ |
4,444,861 |
|
|
$ |
5,265,186 |
|
|
Interest-bearing: |
|
|
|
|
Demand and money market accounts |
|
6,764,415 |
|
|
|
6,185,075 |
|
|
Savings |
|
350,031 |
|
|
|
374,987 |
|
|
Certificates of deposit |
|
2,321,498 |
|
|
|
1,468,975 |
|
|
Total Deposits |
|
13,880,805 |
|
|
|
13,294,223 |
|
| Advances from the FHLB |
|
104,139 |
|
|
|
29,674 |
|
| Subordinated debt, net |
|
255,580 |
|
|
|
247,420 |
|
| Repurchase agreements and
other borrowings |
|
47,315 |
|
|
|
40,918 |
|
|
Total Borrowings |
|
407,034 |
|
|
|
318,012 |
|
| Other liabilities |
|
408,305 |
|
|
|
344,275 |
|
|
TOTAL LIABILITIES |
|
14,696,144 |
|
|
|
13,956,510 |
|
| Preferred stock, authorized
and unissued shares - 2,000,000 |
|
— |
|
|
|
— |
|
| Common stock, $1.667 par
value: 150,000,000 shares authorized |
|
|
|
|
74,887,083 and 72,841,379 shares issued at |
|
|
|
|
September 30, 2023 and December 31, 2022,
respectively |
|
124,837 |
|
|
|
121,426 |
|
| Capital surplus |
|
1,111,152 |
|
|
|
1,052,262 |
|
| Retained earnings |
|
911,042 |
|
|
|
840,777 |
|
| Common stock issued to
deferred compensation trust, at cost |
|
|
|
|
1,001,376 and 931,030 shares at September 30, 2023 and
December 31, 2022, respectively |
|
(20,740 |
) |
|
|
(18,974 |
) |
| Deferred compensation
trust |
|
20,740 |
|
|
|
18,974 |
|
| Accumulated other
comprehensive income (loss) |
|
(179,043 |
) |
|
|
(140,505 |
) |
|
TOTAL SHAREHOLDERS’ EQUITY |
|
1,967,988 |
|
|
|
1,873,960 |
|
| Noncontrolling interest |
|
16,224 |
|
|
|
14,797 |
|
|
TOTAL EQUITY |
|
1,984,212 |
|
|
|
1,888,757 |
|
|
TOTAL LIABILITIES AND EQUITY |
$ |
16,680,356 |
|
|
$ |
15,845,267 |
|
| |
|
TOWNEBANK |
|
Consolidated Statements of Income (unaudited) |
|
(dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| INTEREST
INCOME: |
|
|
|
|
|
|
|
| Loans, including fees |
$ |
143,605 |
|
|
$ |
111,590 |
|
|
$ |
415,351 |
|
|
$ |
307,595 |
|
| Investment securities |
|
20,292 |
|
|
|
13,979 |
|
|
|
57,519 |
|
|
|
35,913 |
|
| Interest-bearing deposits in
financial institutions and federal funds sold |
|
15,031 |
|
|
|
9,509 |
|
|
|
40,168 |
|
|
|
15,472 |
|
| Mortgage loans held for
sale |
|
3,928 |
|
|
|
2,446 |
|
|
|
8,079 |
|
|
|
7,038 |
|
|
Total interest income |
|
182,856 |
|
|
|
137,524 |
|
|
|
521,117 |
|
|
|
366,018 |
|
| INTEREST
EXPENSE: |
|
|
|
|
|
|
|
| Deposits |
|
64,171 |
|
|
|
10,230 |
|
|
|
146,776 |
|
|
|
20,696 |
|
| Advances from the FHLB |
|
3,438 |
|
|
|
83 |
|
|
|
16,838 |
|
|
|
261 |
|
| Subordinated debt, net |
|
2,245 |
|
|
|
3,117 |
|
|
|
6,650 |
|
|
|
12,328 |
|
| Repurchase agreements and
other borrowings |
|
(56 |
) |
|
|
56 |
|
|
|
806 |
|
|
|
151 |
|
|
Total interest expense |
|
69,798 |
|
|
|
13,486 |
|
|
|
171,070 |
|
|
|
33,436 |
|
| Net interest
income |
|
113,058 |
|
|
|
124,038 |
|
|
|
350,047 |
|
|
|
332,582 |
|
| PROVISION FOR CREDIT
LOSSES |
|
1,007 |
|
|
|
3,925 |
|
|
|
16,232 |
|
|
|
2,532 |
|
|
Net interest income after provision for credit
losses |
|
112,051 |
|
|
|
120,113 |
|
|
|
333,815 |
|
|
|
330,050 |
|
| NONINTEREST
INCOME: |
|
|
|
|
|
|
|
| Residential mortgage banking
income, net |
|
10,648 |
|
|
|
11,968 |
|
|
|
31,380 |
|
|
|
39,782 |
|
| Insurance commissions and
other income, net |
|
23,777 |
|
|
|
19,435 |
|
|
|
69,098 |
|
|
|
58,255 |
|
| Property management income,
net |
|
12,800 |
|
|
|
9,891 |
|
|
|
40,433 |
|
|
|
36,489 |
|
| Real estate brokerage income,
net |
|
(63 |
) |
|
|
2,932 |
|
|
|
3,562 |
|
|
|
8,899 |
|
| Service charges on deposit
accounts |
|
2,802 |
|
|
|
2,455 |
|
|
|
8,671 |
|
|
|
7,474 |
|
| Credit card merchant fees,
net |
|
2,006 |
|
|
|
1,658 |
|
|
|
5,232 |
|
|
|
4,940 |
|
| BOLI |
|
1,814 |
|
|
|
1,585 |
|
|
|
5,196 |
|
|
|
5,155 |
|
| Other income |
|
6,022 |
|
|
|
5,274 |
|
|
|
24,956 |
|
|
|
18,052 |
|
|
Total noninterest income |
|
59,806 |
|
|
|
55,198 |
|
|
|
188,528 |
|
|
|
179,046 |
|
| NONINTEREST
EXPENSE: |
|
|
|
|
|
|
|
| Salaries and employee
benefits |
|
67,258 |
|
|
|
65,463 |
|
|
|
204,124 |
|
|
|
194,318 |
|
| Occupancy |
|
9,027 |
|
|
|
8,748 |
|
|
|
27,579 |
|
|
|
25,417 |
|
| Furniture and equipment |
|
4,100 |
|
|
|
3,764 |
|
|
|
12,733 |
|
|
|
11,097 |
|
| Amortization -
intangibles |
|
3,610 |
|
|
|
2,644 |
|
|
|
10,744 |
|
|
|
8,145 |
|
| Software expense |
|
6,130 |
|
|
|
4,594 |
|
|
|
17,922 |
|
|
|
13,848 |
|
| Data processing |
|
4,140 |
|
|
|
3,628 |
|
|
|
11,504 |
|
|
|
10,778 |
|
| Professional fees |
|
2,770 |
|
|
|
2,627 |
|
|
|
8,948 |
|
|
|
6,416 |
|
| Advertising and marketing |
|
3,653 |
|
|
|
4,290 |
|
|
|
12,012 |
|
|
|
12,508 |
|
| Other expenses |
|
17,014 |
|
|
|
16,276 |
|
|
|
61,762 |
|
|
|
47,612 |
|
|
Total noninterest expense |
|
117,702 |
|
|
|
112,034 |
|
|
|
367,328 |
|
|
|
330,139 |
|
| Income before income
tax expense and noncontrolling interest |
|
54,155 |
|
|
|
63,277 |
|
|
|
155,015 |
|
|
|
178,957 |
|
| Provision for income tax
expense |
|
9,410 |
|
|
|
12,606 |
|
|
|
28,424 |
|
|
|
34,983 |
|
| Net
income |
$ |
44,745 |
|
|
$ |
50,671 |
|
|
$ |
126,591 |
|
|
$ |
143,974 |
|
| Net income attributable to
noncontrolling interest |
|
117 |
|
|
|
(502 |
) |
|
|
(1,680 |
) |
|
|
(1,672 |
) |
| Net income
attributable to TowneBank |
$ |
44,862 |
|
|
$ |
50,169 |
|
|
$ |
124,911 |
|
|
$ |
142,302 |
|
| Per common share
information |
|
|
|
|
|
|
|
|
Basic earnings |
$ |
0.60 |
|
|
$ |
0.69 |
|
|
$ |
1.67 |
|
|
$ |
1.96 |
|
|
Diluted earnings |
$ |
0.60 |
|
|
$ |
0.69 |
|
|
$ |
1.67 |
|
|
$ |
1.96 |
|
|
Cash dividends declared |
$ |
0.25 |
|
|
$ |
0.23 |
|
|
$ |
0.73 |
|
|
$ |
0.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOWNEBANK |
|
Consolidated Balance Sheets - Five Quarter
Trend |
|
(dollars in thousands, except share data) |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
| |
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(audited) |
|
(unaudited) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
| Cash and due from banks |
$ |
83,949 |
|
|
$ |
106,994 |
|
|
$ |
97,502 |
|
|
$ |
55,381 |
|
|
$ |
97,290 |
|
| Interest-bearing deposits at
FRB - Richmond |
|
1,029,276 |
|
|
|
1,427,044 |
|
|
|
1,040,112 |
|
|
|
1,000,205 |
|
|
|
1,245,067 |
|
| Federal funds sold and
interest-bearing deposits in financial institutions |
|
102,527 |
|
|
|
102,231 |
|
|
|
104,924 |
|
|
|
97,244 |
|
|
|
96,862 |
|
|
Total Cash and Cash Equivalents |
|
1,215,752 |
|
|
|
1,636,269 |
|
|
|
1,242,538 |
|
|
|
1,152,830 |
|
|
|
1,439,219 |
|
| Securities available for
sale |
|
1,963,453 |
|
|
|
2,005,851 |
|
|
|
2,078,483 |
|
|
|
1,840,902 |
|
|
|
1,890,136 |
|
| Securities held to
maturity |
|
547,854 |
|
|
|
548,017 |
|
|
|
548,226 |
|
|
|
548,475 |
|
|
|
548,745 |
|
|
Less: allowance for credit losses |
|
(85 |
) |
|
|
(87 |
) |
|
|
(88 |
) |
|
|
(83 |
) |
|
|
(83 |
) |
|
Securities held to maturity, net of allowance for credit
losses |
|
547,769 |
|
|
|
547,930 |
|
|
|
548,138 |
|
|
|
548,392 |
|
|
|
548,662 |
|
| Other equity securities |
|
14,062 |
|
|
|
13,798 |
|
|
|
13,341 |
|
|
|
6,424 |
|
|
|
6,360 |
|
| FHLB stock |
|
16,634 |
|
|
|
40,454 |
|
|
|
29,837 |
|
|
|
9,617 |
|
|
|
9,475 |
|
|
Total Securities |
|
2,541,918 |
|
|
|
2,608,033 |
|
|
|
2,669,799 |
|
|
|
2,405,335 |
|
|
|
2,454,633 |
|
| Mortgage loans held for
sale |
|
188,048 |
|
|
|
229,502 |
|
|
|
157,161 |
|
|
|
102,339 |
|
|
|
165,023 |
|
| Loans, net of unearned income
and deferred costs |
|
11,172,971 |
|
|
|
11,208,014 |
|
|
|
11,173,785 |
|
|
|
10,794,602 |
|
|
|
10,559,611 |
|
|
Less: allowance for credit losses |
|
(125,159 |
) |
|
|
(123,513 |
) |
|
|
(120,002 |
) |
|
|
(110,816 |
) |
|
|
(107,497 |
) |
|
Net Loans |
|
11,047,812 |
|
|
|
11,084,501 |
|
|
|
11,053,783 |
|
|
|
10,683,786 |
|
|
|
10,452,114 |
|
| Premises and equipment,
net |
|
335,522 |
|
|
|
326,686 |
|
|
|
321,944 |
|
|
|
304,802 |
|
|
|
295,345 |
|
| Goodwill |
|
456,684 |
|
|
|
456,695 |
|
|
|
477,234 |
|
|
|
458,482 |
|
|
|
458,482 |
|
| Other intangible assets,
net |
|
67,496 |
|
|
|
71,106 |
|
|
|
73,238 |
|
|
|
43,163 |
|
|
|
44,854 |
|
| BOLI |
|
275,240 |
|
|
|
273,435 |
|
|
|
271,704 |
|
|
|
258,069 |
|
|
|
256,074 |
|
| Other assets |
|
551,884 |
|
|
|
538,848 |
|
|
|
463,076 |
|
|
|
436,461 |
|
|
|
386,053 |
|
|
TOTAL ASSETS |
$ |
16,680,356 |
|
|
$ |
17,225,075 |
|
|
$ |
16,730,477 |
|
|
$ |
15,845,267 |
|
|
$ |
15,951,797 |
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
$ |
4,444,861 |
|
|
$ |
4,774,830 |
|
|
$ |
5,069,363 |
|
|
$ |
5,265,186 |
|
|
$ |
5,574,528 |
|
|
Interest-bearing: |
|
|
|
|
|
|
|
|
|
|
Demand and money market accounts |
|
6,764,415 |
|
|
|
6,529,336 |
|
|
|
6,284,184 |
|
|
|
6,185,075 |
|
|
|
6,042,417 |
|
|
Savings |
|
350,031 |
|
|
|
361,891 |
|
|
|
389,173 |
|
|
|
374,987 |
|
|
|
387,622 |
|
|
Certificates of deposit |
|
2,321,498 |
|
|
|
2,100,604 |
|
|
|
1,855,411 |
|
|
|
1,468,975 |
|
|
|
1,407,495 |
|
|
Total Deposits |
|
13,880,805 |
|
|
|
13,766,661 |
|
|
|
13,598,131 |
|
|
|
13,294,223 |
|
|
|
13,412,062 |
|
| Advances from the FHLB |
|
104,139 |
|
|
|
754,319 |
|
|
|
504,497 |
|
|
|
29,674 |
|
|
|
29,850 |
|
| Subordinated debt, net |
|
255,580 |
|
|
|
255,365 |
|
|
|
255,151 |
|
|
|
247,420 |
|
|
|
247,265 |
|
| Repurchase agreements and
other borrowings |
|
47,315 |
|
|
|
49,898 |
|
|
|
46,602 |
|
|
|
40,918 |
|
|
|
43,165 |
|
|
Total Borrowings |
|
407,034 |
|
|
|
1,059,582 |
|
|
|
806,250 |
|
|
|
318,012 |
|
|
|
320,280 |
|
| Other liabilities |
|
408,305 |
|
|
|
408,333 |
|
|
|
336,201 |
|
|
|
344,275 |
|
|
|
375,869 |
|
|
TOTAL LIABILITIES |
|
14,696,144 |
|
|
|
15,234,576 |
|
|
|
14,740,582 |
|
|
|
13,956,510 |
|
|
|
14,108,211 |
|
| |
|
|
|
|
|
|
|
|
|
| Preferred stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Common stock, $1.667 par
value |
|
124,837 |
|
|
|
124,805 |
|
|
|
124,682 |
|
|
|
121,426 |
|
|
|
121,423 |
|
| Capital surplus |
|
1,111,152 |
|
|
|
1,109,526 |
|
|
|
1,109,387 |
|
|
|
1,052,262 |
|
|
|
1,052,374 |
|
| Retained earnings |
|
911,042 |
|
|
|
884,901 |
|
|
|
861,905 |
|
|
|
840,777 |
|
|
|
810,845 |
|
| Common stock issued to
deferred compensation |
|
|
|
|
|
|
|
|
|
|
trust, at cost |
|
(20,740 |
) |
|
|
(20,134 |
) |
|
|
(18,839 |
) |
|
|
(18,974 |
) |
|
|
(18,862 |
) |
| Deferred compensation
trust |
|
20,740 |
|
|
|
20,134 |
|
|
|
18,839 |
|
|
|
18,974 |
|
|
|
18,862 |
|
| Accumulated other
comprehensive income (loss) |
|
(179,043 |
) |
|
|
(145,392 |
) |
|
|
(121,297 |
) |
|
|
(140,505 |
) |
|
|
(157,980 |
) |
|
TOTAL SHAREHOLDERS’ EQUITY |
|
1,967,988 |
|
|
|
1,973,840 |
|
|
|
1,974,677 |
|
|
|
1,873,960 |
|
|
|
1,826,662 |
|
| Noncontrolling interest |
|
16,224 |
|
|
|
16,659 |
|
|
|
15,218 |
|
|
|
14,797 |
|
|
|
16,924 |
|
|
TOTAL EQUITY |
|
1,984,212 |
|
|
|
1,990,499 |
|
|
|
1,989,895 |
|
|
|
1,888,757 |
|
|
|
1,843,586 |
|
|
TOTAL LIABILITIES AND EQUITY |
$ |
16,680,356 |
|
|
$ |
17,225,075 |
|
|
$ |
16,730,477 |
|
|
$ |
15,845,267 |
|
|
$ |
15,951,797 |
|
|
|
|
TOWNEBANK |
|
Consolidated Statements of Income - Five Quarter Trend
(unaudited) |
|
(dollars in thousands, except share data) |
|
|
|
|
|
|
| |
Three Months Ended |
| |
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
2022 |
|
| INTEREST
INCOME: |
|
|
|
|
|
|
|
|
|
| Loans, including fees |
$ |
143,605 |
|
|
$ |
138,977 |
|
|
$ |
132,768 |
|
|
$ |
123,395 |
|
$ |
111,590 |
|
| Investment securities |
|
20,292 |
|
|
|
18,851 |
|
|
|
18,375 |
|
|
|
15,294 |
|
|
13,979 |
|
| Interest-bearing deposits in
financial institutions and federal funds sold |
|
15,031 |
|
|
|
14,488 |
|
|
|
10,649 |
|
|
|
11,387 |
|
|
9,509 |
|
| Mortgage loans held for
sale |
|
3,928 |
|
|
|
2,547 |
|
|
|
1,604 |
|
|
|
1,842 |
|
|
2,446 |
|
|
Total interest income |
|
182,856 |
|
|
|
174,863 |
|
|
|
163,396 |
|
|
|
151,918 |
|
|
137,524 |
|
| INTEREST
EXPENSE: |
|
|
|
|
|
|
|
|
|
| Deposits |
|
64,171 |
|
|
|
48,671 |
|
|
|
33,934 |
|
|
|
20,118 |
|
|
10,230 |
|
| Advances from the FHLB |
|
3,438 |
|
|
|
10,407 |
|
|
|
2,992 |
|
|
|
665 |
|
|
83 |
|
| Subordinated debt, net |
|
2,245 |
|
|
|
2,236 |
|
|
|
2,169 |
|
|
|
2,108 |
|
|
3,117 |
|
| Repurchase agreements and
other borrowings |
|
(56 |
) |
|
|
(62 |
) |
|
|
923 |
|
|
|
244 |
|
|
56 |
|
|
Total interest expense |
|
69,798 |
|
|
|
61,252 |
|
|
|
40,018 |
|
|
|
23,135 |
|
|
13,486 |
|
| Net interest
income |
|
113,058 |
|
|
|
113,611 |
|
|
|
123,378 |
|
|
|
128,783 |
|
|
124,038 |
|
| PROVISION FOR CREDIT
LOSSES |
|
1,007 |
|
|
|
3,556 |
|
|
|
11,670 |
|
|
|
6,074 |
|
|
3,925 |
|
|
Net interest income after provision for credit
losses |
|
112,051 |
|
|
|
110,055 |
|
|
|
111,708 |
|
|
|
122,709 |
|
|
120,113 |
|
| NONINTEREST
INCOME: |
|
|
|
|
|
|
|
|
|
| Residential mortgage banking
income, net |
|
10,648 |
|
|
|
11,360 |
|
|
|
9,372 |
|
|
|
7,368 |
|
|
11,968 |
|
| Insurance commissions and
other income, net |
|
23,777 |
|
|
|
22,498 |
|
|
|
22,823 |
|
|
|
17,324 |
|
|
19,435 |
|
| Property management income,
net |
|
12,800 |
|
|
|
12,098 |
|
|
|
15,535 |
|
|
|
7,756 |
|
|
9,891 |
|
| Real estate brokerage income,
net |
|
(63 |
) |
|
|
1,834 |
|
|
|
1,791 |
|
|
|
2,355 |
|
|
2,932 |
|
| Service charges on deposit
accounts |
|
2,802 |
|
|
|
3,018 |
|
|
|
2,851 |
|
|
|
2,655 |
|
|
2,455 |
|
| Credit card merchant fees,
net |
|
2,006 |
|
|
|
1,682 |
|
|
|
1,545 |
|
|
|
1,653 |
|
|
1,658 |
|
| BOLI |
|
1,814 |
|
|
|
1,710 |
|
|
|
1,672 |
|
|
|
1,985 |
|
|
1,585 |
|
| Other income |
|
6,022 |
|
|
|
13,757 |
|
|
|
5,177 |
|
|
|
5,428 |
|
|
5,274 |
|
|
Total noninterest income |
|
59,806 |
|
|
|
67,957 |
|
|
|
60,766 |
|
|
|
46,524 |
|
|
55,198 |
|
| NONINTEREST
EXPENSE: |
|
|
|
|
|
|
|
|
|
| Salaries and employee
benefits |
|
67,258 |
|
|
|
67,445 |
|
|
|
69,420 |
|
|
|
61,307 |
|
|
65,463 |
|
| Occupancy |
|
9,027 |
|
|
|
9,487 |
|
|
|
9,064 |
|
|
|
9,252 |
|
|
8,748 |
|
| Furniture and equipment |
|
4,100 |
|
|
|
4,389 |
|
|
|
4,244 |
|
|
|
3,983 |
|
|
3,764 |
|
| Amortization -
intangibles |
|
3,610 |
|
|
|
3,610 |
|
|
|
3,524 |
|
|
|
2,475 |
|
|
2,644 |
|
| Software expense |
|
6,130 |
|
|
|
6,169 |
|
|
|
5,624 |
|
|
|
5,111 |
|
|
4,594 |
|
| Data processing |
|
4,140 |
|
|
|
4,011 |
|
|
|
3,353 |
|
|
|
3,096 |
|
|
3,628 |
|
| Professional fees |
|
2,770 |
|
|
|
3,166 |
|
|
|
3,011 |
|
|
|
3,605 |
|
|
2,627 |
|
| Advertising and marketing |
|
3,653 |
|
|
|
3,959 |
|
|
|
4,401 |
|
|
|
3,489 |
|
|
4,290 |
|
| Other expenses |
|
17,014 |
|
|
|
22,992 |
|
|
|
21,756 |
|
|
|
18,823 |
|
|
16,276 |
|
|
Total noninterest expense |
|
117,702 |
|
|
|
125,228 |
|
|
|
124,397 |
|
|
|
111,141 |
|
|
112,034 |
|
|
Income before income tax expense and noncontrolling
interest |
|
54,155 |
|
|
|
52,784 |
|
|
|
48,077 |
|
|
|
58,092 |
|
|
63,277 |
|
| Provision for income tax
expense |
|
9,410 |
|
|
|
9,416 |
|
|
|
9,599 |
|
|
|
11,598 |
|
|
12,606 |
|
| Net
income |
|
44,745 |
|
|
|
43,368 |
|
|
|
38,478 |
|
|
|
46,494 |
|
|
50,671 |
|
| Net income attributable to
noncontrolling interest |
|
117 |
|
|
|
(1,652 |
) |
|
|
(145 |
) |
|
|
191 |
|
|
(502 |
) |
| Net income
attributable to TowneBank |
$ |
44,862 |
|
|
$ |
41,716 |
|
|
$ |
38,333 |
|
|
$ |
46,685 |
|
$ |
50,169 |
|
| Per common share
information |
|
|
|
|
|
|
|
|
|
|
Basic earnings |
$ |
0.60 |
|
|
$ |
0.56 |
|
|
$ |
0.52 |
|
|
$ |
0.64 |
|
$ |
0.69 |
|
|
Diluted earnings |
$ |
0.60 |
|
|
$ |
0.56 |
|
|
$ |
0.52 |
|
|
$ |
0.64 |
|
$ |
0.69 |
|
|
Basic weighted average shares outstanding |
|
74,750,294 |
|
|
|
74,691,121 |
|
|
|
74,363,222 |
|
|
|
72,686,303 |
|
|
72,578,736 |
|
|
Diluted weighted average shares outstanding |
|
74,765,515 |
|
|
|
74,699,810 |
|
|
|
74,390,614 |
|
|
|
72,724,189 |
|
|
72,594,474 |
|
|
Cash dividends declared |
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.23 |
|
|
$ |
0.23 |
|
$ |
0.23 |
|
| |
|
|
|
|
|
|
|
|
|
|
TOWNEBANK |
|
Banking Segment Financial Information
(unaudited) |
|
(dollars in thousands) |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
|
Increase/(Decrease) |
| |
September 30, |
|
June 30, |
|
September 30, |
|
YTD 2023 over 2022 |
| |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Amount |
|
Percent |
| Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
112,189 |
|
|
$ |
123,039 |
|
|
$ |
113,327 |
|
|
$ |
349,165 |
|
|
$ |
327,226 |
|
|
$ |
21,939 |
|
|
6.70 |
% |
|
Service charges on deposit accounts |
|
2,802 |
|
|
|
2,455 |
|
|
|
3,018 |
|
|
|
8,671 |
|
|
|
7,474 |
|
|
|
1,197 |
|
|
16.02 |
% |
|
Credit card merchant fees |
|
2,006 |
|
|
|
1,658 |
|
|
|
1,682 |
|
|
|
5,232 |
|
|
|
4,940 |
|
|
|
292 |
|
|
5.91 |
% |
|
Other income |
|
6,608 |
|
|
|
5,332 |
|
|
|
6,153 |
|
|
|
18,499 |
|
|
|
17,083 |
|
|
|
1,416 |
|
|
8.29 |
% |
|
Total noninterest income |
|
11,416 |
|
|
|
9,445 |
|
|
|
10,853 |
|
|
|
32,402 |
|
|
|
29,497 |
|
|
|
2,905 |
|
|
9.85 |
% |
| Total revenue |
|
123,605 |
|
|
|
132,484 |
|
|
|
124,180 |
|
|
|
381,567 |
|
|
|
356,723 |
|
|
|
24,844 |
|
|
6.96 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Provision for credit
losses |
|
1,206 |
|
|
|
4,240 |
|
|
|
3,482 |
|
|
|
16,442 |
|
|
|
2,247 |
|
|
|
14,195 |
|
|
631.73 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
42,727 |
|
|
|
39,349 |
|
|
|
42,240 |
|
|
|
128,161 |
|
|
|
115,082 |
|
|
|
13,079 |
|
|
11.36 |
% |
|
Occupancy |
|
6,637 |
|
|
|
6,109 |
|
|
|
6,846 |
|
|
|
19,717 |
|
|
|
17,401 |
|
|
|
2,316 |
|
|
13.31 |
% |
|
Furniture and equipment |
|
3,273 |
|
|
|
2,803 |
|
|
|
3,544 |
|
|
|
10,150 |
|
|
|
8,259 |
|
|
|
1,891 |
|
|
22.90 |
% |
|
Amortization of intangible assets |
|
1,296 |
|
|
|
726 |
|
|
|
1,341 |
|
|
|
3,918 |
|
|
|
2,330 |
|
|
|
1,588 |
|
|
68.15 |
% |
|
Other expenses |
|
22,595 |
|
|
|
21,075 |
|
|
|
29,178 |
|
|
|
80,215 |
|
|
|
57,158 |
|
|
|
23,057 |
|
|
40.34 |
% |
| Total expenses |
|
76,528 |
|
|
|
70,062 |
|
|
|
83,149 |
|
|
|
242,161 |
|
|
|
200,230 |
|
|
|
41,931 |
|
|
20.94 |
% |
|
Income before income tax, corporate allocation and noncontrolling
interest |
|
45,871 |
|
|
|
58,182 |
|
|
|
37,549 |
|
|
|
122,964 |
|
|
|
154,246 |
|
|
|
(31,282 |
) |
|
(20.28)% |
| Corporate allocation |
|
1,291 |
|
|
|
902 |
|
|
|
1,271 |
|
|
|
3,763 |
|
|
|
3,520 |
|
|
|
243 |
|
|
6.90 |
% |
|
Income before income tax provision and noncontrolling interest |
|
47,162 |
|
|
|
59,084 |
|
|
|
38,820 |
|
|
|
126,727 |
|
|
|
157,766 |
|
|
|
(31,039 |
) |
|
(19.67)% |
| Provision for income tax
expense |
|
7,440 |
|
|
|
11,507 |
|
|
|
6,114 |
|
|
|
21,204 |
|
|
|
29,782 |
|
|
|
(8,578 |
) |
|
(28.80)% |
| Net income |
|
39,722 |
|
|
|
47,577 |
|
|
|
32,706 |
|
|
|
105,523 |
|
|
|
127,984 |
|
|
|
(22,461 |
) |
|
(17.55)% |
| Noncontrolling interest |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
N/M |
|
Net income attributable to TowneBank |
$ |
39,722 |
|
|
$ |
47,577 |
|
|
$ |
32,706 |
|
|
$ |
105,523 |
|
|
$ |
127,984 |
|
|
$ |
(22,461 |
) |
|
(17.55)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency
ratio(non-GAAP) |
|
60.86 |
% |
|
|
52.34 |
% |
|
|
65.88 |
% |
|
|
62.44 |
% |
|
|
55.48 |
% |
|
|
6.96 |
% |
|
12.55 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOWNEBANK |
|
Realty Segment Financial Information
(unaudited) |
|
(dollars in thousands) |
|
|
| |
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
|
Increase/(Decrease) |
| |
September 30, |
|
June 30, |
|
September 30, |
|
YTD 2023 over 2022 |
| |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Amount |
|
Percent |
| Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage brokerage
income, net |
$ |
10,955 |
|
|
$ |
12,726 |
|
|
$ |
12,215 |
|
|
$ |
32,964 |
|
|
$ |
43,491 |
|
|
$ |
(10,527 |
) |
|
(24.21)% |
|
Real estate brokerage income, net |
|
(63 |
) |
|
|
2,932 |
|
|
|
1,834 |
|
|
|
3,562 |
|
|
|
8,899 |
|
|
|
(5,337 |
) |
|
(59.97)% |
|
Title insurance and settlement fees |
|
— |
|
|
|
525 |
|
|
|
152 |
|
|
|
443 |
|
|
|
1,590 |
|
|
|
(1,147 |
) |
|
(72.14)% |
|
Property management fees, net |
|
12,800 |
|
|
|
9,891 |
|
|
|
12,098 |
|
|
|
40,433 |
|
|
|
36,489 |
|
|
|
3,944 |
|
|
10.81 |
% |
|
Income from unconsolidated subsidiary |
|
(63 |
) |
|
|
77 |
|
|
|
(886 |
) |
|
|
(884 |
) |
|
|
359 |
|
|
|
(1,243 |
) |
|
(346.24)% |
|
Net interest and other income |
|
1,163 |
|
|
|
1,508 |
|
|
|
9,468 |
|
|
|
10,817 |
|
|
|
6,851 |
|
|
|
3,966 |
|
|
57.89 |
% |
| Total revenue |
|
24,792 |
|
|
|
27,659 |
|
|
|
34,881 |
|
|
|
87,335 |
|
|
|
97,679 |
|
|
|
(10,344 |
) |
|
(10.59)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Provision for credit
losses |
|
(199 |
) |
|
|
(315 |
) |
|
|
74 |
|
|
|
(210 |
) |
|
|
285 |
|
|
|
(495 |
) |
|
(173.68)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
12,881 |
|
|
|
15,854 |
|
|
|
13,949 |
|
|
|
41,670 |
|
|
|
49,646 |
|
|
|
(7,976 |
) |
|
(16.07)% |
|
Occupancy |
|
1,669 |
|
|
|
1,919 |
|
|
|
1,869 |
|
|
|
5,559 |
|
|
|
5,814 |
|
|
|
(255 |
) |
|
(4.39)% |
|
Furniture and equipment |
|
600 |
|
|
|
765 |
|
|
|
640 |
|
|
|
1,933 |
|
|
|
2,232 |
|
|
|
(299 |
) |
|
(13.40)% |
|
Amortization of intangible assets |
|
742 |
|
|
|
817 |
|
|
|
741 |
|
|
|
2,166 |
|
|
|
2,449 |
|
|
|
(283 |
) |
|
(11.56)% |
|
Other expenses |
|
9,544 |
|
|
|
8,687 |
|
|
|
9,337 |
|
|
|
27,319 |
|
|
|
29,472 |
|
|
|
(2,153 |
) |
|
(7.31)% |
| Total expenses |
|
25,436 |
|
|
|
28,042 |
|
|
|
26,536 |
|
|
|
78,647 |
|
|
|
89,613 |
|
|
|
(10,966 |
) |
|
(12.24)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax, corporate allocation and noncontrolling
interest |
|
(445 |
) |
|
|
(68 |
) |
|
|
8,271 |
|
|
|
8,898 |
|
|
|
7,781 |
|
|
|
1,117 |
|
|
14.36 |
% |
| Corporate allocation |
|
(600 |
) |
|
|
(602 |
) |
|
|
(600 |
) |
|
|
(1,800 |
) |
|
|
(2,602 |
) |
|
|
802 |
|
|
(30.82)% |
|
Income before income tax provision and noncontrolling interest |
|
(1,045 |
) |
|
|
(670 |
) |
|
|
7,671 |
|
|
|
7,098 |
|
|
|
5,179 |
|
|
|
1,919 |
|
|
37.05 |
% |
| Provision for income tax
expense |
|
(99 |
) |
|
|
(120 |
) |
|
|
1,686 |
|
|
|
1,769 |
|
|
|
1,110 |
|
|
|
659 |
|
|
59.37 |
% |
| Net income |
|
(946 |
) |
|
|
(550 |
) |
|
|
5,985 |
|
|
|
5,329 |
|
|
|
4,069 |
|
|
|
1,260 |
|
|
30.97 |
% |
| Noncontrolling interest |
|
117 |
|
|
|
(502 |
) |
|
|
(1,652 |
) |
|
|
(1,680 |
) |
|
|
(1,672 |
) |
|
|
(8 |
) |
|
0.48 |
% |
|
Net income attributable to TowneBank |
$ |
(829 |
) |
|
$ |
(1,052 |
) |
|
$ |
4,333 |
|
|
$ |
3,649 |
|
|
$ |
2,397 |
|
|
$ |
1,252 |
|
|
52.23 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency ratio excluding
gain on equity investment(non-GAAP) |
|
99.61 |
% |
|
|
98.43 |
% |
|
|
99.03 |
% |
|
|
97.43 |
% |
|
|
89.24 |
% |
|
|
8.19 |
% |
|
9.18 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOWNEBANK |
|
Insurance Segment Financial Information
(unaudited) |
|
(dollars in thousands) |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
|
Increase/(Decrease) |
| |
September 30, |
|
June 30, |
|
September 30, |
|
YTD 2023 over 2022 |
| |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Amount |
|
Percent |
| Commission and fee income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and casualty |
$ |
22,103 |
|
|
$ |
17,567 |
|
|
$ |
20,028 |
|
|
$ |
60,259 |
|
|
$ |
49,451 |
|
|
$ |
10,808 |
|
|
21.86 |
% |
|
Employee benefits |
|
4,245 |
|
|
|
4,020 |
|
|
|
4,561 |
|
|
|
13,393 |
|
|
|
12,105 |
|
|
|
1,288 |
|
|
10.64 |
% |
|
Specialized benefit services |
|
133 |
|
|
|
160 |
|
|
|
153 |
|
|
|
445 |
|
|
|
489 |
|
|
|
(44 |
) |
|
(9.00)% |
| Total commissions and
fees |
|
26,481 |
|
|
|
21,747 |
|
|
|
24,742 |
|
|
|
74,097 |
|
|
|
62,045 |
|
|
|
12,052 |
|
|
19.42 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Contingency and bonus
revenue |
|
2,335 |
|
|
|
1,654 |
|
|
|
2,638 |
|
|
|
9,343 |
|
|
|
8,052 |
|
|
|
1,291 |
|
|
16.03 |
% |
| Other income |
|
557 |
|
|
|
23 |
|
|
|
8 |
|
|
|
573 |
|
|
|
72 |
|
|
|
501 |
|
|
695.83 |
% |
| Total revenue |
|
29,373 |
|
|
|
23,424 |
|
|
|
27,388 |
|
|
|
84,013 |
|
|
|
70,169 |
|
|
|
13,844 |
|
|
19.73 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee commission expense |
|
4,906 |
|
|
|
4,331 |
|
|
|
4,881 |
|
|
|
14,340 |
|
|
|
12,943 |
|
|
|
1,397 |
|
|
10.79 |
% |
|
Revenue, net of commission expense |
|
24,467 |
|
|
|
19,093 |
|
|
|
22,507 |
|
|
|
69,673 |
|
|
|
57,226 |
|
|
|
12,447 |
|
|
21.75 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Salaries and employee
benefits |
|
11,650 |
|
|
|
10,260 |
|
|
|
11,256 |
|
|
|
34,293 |
|
|
|
29,590 |
|
|
|
4,703 |
|
|
15.89 |
% |
| Occupancy |
|
721 |
|
|
|
720 |
|
|
|
772 |
|
|
|
2,303 |
|
|
|
2,202 |
|
|
|
101 |
|
|
4.59 |
% |
| Furniture and equipment |
|
227 |
|
|
|
196 |
|
|
|
205 |
|
|
|
650 |
|
|
|
606 |
|
|
|
44 |
|
|
7.26 |
% |
| Amortization of intangible
assets |
|
1,572 |
|
|
|
1,101 |
|
|
|
1,528 |
|
|
|
4,660 |
|
|
|
3,366 |
|
|
|
1,294 |
|
|
38.44 |
% |
| Other expenses |
|
1,568 |
|
|
|
1,653 |
|
|
|
1,782 |
|
|
|
4,614 |
|
|
|
4,532 |
|
|
|
82 |
|
|
1.81 |
% |
| Total operating expenses |
|
15,738 |
|
|
|
13,930 |
|
|
|
15,543 |
|
|
|
46,520 |
|
|
|
40,296 |
|
|
|
6,224 |
|
|
15.45 |
% |
|
Income before income tax, corporate allocation and noncontrolling
interest |
|
8,729 |
|
|
|
5,163 |
|
|
|
6,964 |
|
|
|
23,153 |
|
|
|
16,930 |
|
|
|
6,223 |
|
|
36.76 |
% |
| Corporate allocation |
|
(691 |
) |
|
|
(300 |
) |
|
|
(671 |
) |
|
|
(1,963 |
) |
|
|
(918 |
) |
|
|
(1,045 |
) |
|
113.83 |
% |
|
Income before income tax provision and noncontrolling interest |
|
8,038 |
|
|
|
4,863 |
|
|
|
6,293 |
|
|
|
21,190 |
|
|
|
16,012 |
|
|
|
5,178 |
|
|
32.34 |
% |
|
Provision for income tax expense |
|
2,069 |
|
|
|
1,219 |
|
|
|
1,616 |
|
|
|
5,451 |
|
|
|
4,091 |
|
|
|
1,360 |
|
|
33.24 |
% |
|
Net income |
|
5,969 |
|
|
|
3,644 |
|
|
|
4,677 |
|
|
|
15,739 |
|
|
|
11,921 |
|
|
|
3,818 |
|
|
32.03 |
% |
|
Noncontrolling interest |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
N/M |
|
|
Net income attributable to TowneBank |
$ |
5,969 |
|
|
$ |
3,644 |
|
|
$ |
4,677 |
|
|
$ |
15,739 |
|
|
$ |
11,921 |
|
|
$ |
3,818 |
|
|
32.03 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
2,069 |
|
|
|
1,219 |
|
|
|
1,616 |
|
|
|
5,451 |
|
|
|
4,091 |
|
|
|
1,360 |
|
|
33.24 |
% |
|
Depreciation, amortization and interest expense |
|
1,726 |
|
|
|
1,228 |
|
|
|
1,683 |
|
|
|
5,115 |
|
|
|
3,767 |
|
|
|
1,348 |
|
|
35.78 |
% |
|
EBITDA(non-GAAP) |
$ |
9,764 |
|
|
$ |
6,091 |
|
|
$ |
7,976 |
|
|
$ |
26,305 |
|
|
$ |
19,779 |
|
|
$ |
6,526 |
|
|
32.99 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio(non-GAAP) |
|
59.21 |
% |
|
|
67.19 |
% |
|
|
62.27 |
% |
|
|
60.55 |
% |
|
|
64.53 |
% |
|
(3.98) % |
|
(6.17)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOWNEBANK |
|
Reconciliation of Non-GAAP Financial Measures |
|
(dollars in thousands) |
| |
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
| |
|
|
|
|
|
|
|
|
|
| Return on average assets
(GAAP) |
|
1.06 |
% |
|
|
1.22 |
% |
|
|
0.99 |
% |
|
|
1.00 |
% |
|
|
1.16 |
% |
Impact of excluding average
goodwill and other
intangibles and amortization |
|
0.11 |
% |
|
|
0.09 |
% |
|
|
0.11 |
% |
|
|
0.11 |
% |
|
|
0.09 |
% |
| Return on average tangible
assets (non-GAAP) |
|
1.17 |
% |
|
|
1.31 |
% |
|
|
1.10 |
% |
|
|
1.11 |
% |
|
|
1.25 |
% |
| |
|
|
|
|
|
|
|
|
|
| Return on average equity
(GAAP) |
|
8.96 |
% |
|
|
10.60 |
% |
|
|
8.46 |
% |
|
|
8.48 |
% |
|
|
10.09 |
% |
Impact of excluding average
goodwill and other
intangibles and amortization |
|
4.01 |
% |
|
|
4.48 |
% |
|
|
3.89 |
% |
|
|
3.87 |
% |
|
|
4.31 |
% |
| Return on average tangible
equity (non-GAAP) |
|
12.97 |
% |
|
|
15.08 |
% |
|
|
12.35 |
% |
|
|
12.35 |
% |
|
|
14.40 |
% |
| |
|
|
|
|
|
|
|
|
|
| Return on average common
equity (GAAP) |
|
9.04 |
% |
|
|
10.69 |
% |
|
|
8.52 |
% |
|
|
8.54 |
% |
|
|
10.18 |
% |
Impact of excluding average
goodwill and other
intangibles and amortization |
|
4.07 |
% |
|
|
4.58 |
% |
|
|
3.96 |
% |
|
|
3.95 |
% |
|
|
4.39 |
% |
Return on average tangible
common equity
(non-GAAP) |
|
13.11 |
% |
|
|
15.27 |
% |
|
|
12.48 |
% |
|
|
12.49 |
% |
|
|
14.57 |
% |
| |
|
|
|
|
|
|
|
|
|
| Book value (GAAP) |
$ |
26.28 |
|
|
$ |
25.08 |
|
|
$ |
26.36 |
|
|
$ |
26.28 |
|
|
$ |
25.08 |
|
Impact of excluding average
goodwill and other
intangibles and amortization |
|
(7.00 |
) |
|
|
(6.91 |
) |
|
|
(7.05 |
) |
|
|
(7.00 |
) |
|
|
(6.91 |
) |
| Tangible book value
(non-GAAP) |
$ |
19.28 |
|
|
$ |
18.17 |
|
|
$ |
19.31 |
|
|
$ |
19.28 |
|
|
$ |
18.17 |
|
| |
|
|
|
|
|
|
|
|
|
| Efficiency ratio (GAAP) |
|
68.09 |
% |
|
|
62.51 |
% |
|
|
68.97 |
% |
|
|
68.20 |
% |
|
|
64.53 |
% |
| Impact of exclusions |
(1.88) % |
|
(1.48) % |
|
|
1.44 |
% |
|
(0.82) % |
|
(1.59) % |
| Efficiency ratio
(non-GAAP) |
|
66.21 |
% |
|
|
61.03 |
% |
|
|
70.41 |
% |
|
|
67.38 |
% |
|
|
62.94 |
% |
| |
|
|
|
|
|
|
|
|
|
| Average assets (GAAP) |
$ |
16,762,859 |
|
|
$ |
16,304,294 |
|
|
$ |
16,826,965 |
|
|
$ |
16,647,804 |
|
|
$ |
16,382,006 |
|
| Less: average goodwill and
intangible assets |
|
526,445 |
|
|
|
504,000 |
|
|
|
530,658 |
|
|
|
526,375 |
|
|
|
504,715 |
|
| Average tangible assets
(non-GAAP) |
$ |
16,236,414 |
|
|
$ |
15,800,294 |
|
|
$ |
16,296,307 |
|
|
$ |
16,121,429 |
|
|
$ |
15,877,291 |
|
| |
|
|
|
|
|
|
|
|
|
| Average equity (GAAP) |
$ |
1,986,469 |
|
|
$ |
1,878,574 |
|
|
$ |
1,978,613 |
|
|
$ |
1,970,510 |
|
|
$ |
1,885,655 |
|
| Less: average goodwill and
intangible assets |
|
526,445 |
|
|
|
504,000 |
|
|
|
530,658 |
|
|
|
526,375 |
|
|
|
504,715 |
|
| Average tangible equity
(non-GAAP) |
$ |
1,460,024 |
|
|
$ |
1,374,574 |
|
|
$ |
1,447,955 |
|
|
$ |
1,444,135 |
|
|
$ |
1,380,940 |
|
| |
|
|
|
|
|
|
|
|
|
| Average common equity
(GAAP) |
$ |
1,969,898 |
|
|
$ |
1,861,845 |
|
|
$ |
1,963,164 |
|
|
$ |
1,954,850 |
|
|
$ |
1,869,112 |
|
| Less: average goodwill and
intangible assets |
|
526,445 |
|
|
|
504,000 |
|
|
|
530,658 |
|
|
|
526,375 |
|
|
|
504,715 |
|
| Average tangible common equity
(non-GAAP) |
$ |
1,443,453 |
|
|
$ |
1,357,845 |
|
|
$ |
1,432,506 |
|
|
$ |
1,428,475 |
|
|
$ |
1,364,397 |
|
| |
|
|
|
|
|
|
|
|
|
| Net income (GAAP) |
$ |
44,862 |
|
|
$ |
50,169 |
|
|
$ |
41,716 |
|
|
$ |
124,911 |
|
|
$ |
142,302 |
|
| Amortization of intangibles,
net of tax |
|
2,852 |
|
|
|
2,089 |
|
|
|
2,852 |
|
|
|
8,488 |
|
|
|
6,435 |
|
| Tangible net income
(non-GAAP) |
$ |
47,714 |
|
|
$ |
52,258 |
|
|
$ |
44,568 |
|
|
$ |
133,399 |
|
|
$ |
148,737 |
|
| |
|
|
|
|
|
|
|
|
|
| Noninterest expense
(GAAP) |
$ |
117,702 |
|
|
$ |
112,034 |
|
|
$ |
125,228 |
|
|
$ |
367,328 |
|
|
$ |
330,139 |
|
| Less: amortization of
intangibles |
|
3,610 |
|
|
|
2,644 |
|
|
|
3,610 |
|
|
|
10,744 |
|
|
|
8,145 |
|
| Noninterest expense net of
amortization (non-GAAP) |
$ |
114,092 |
|
|
$ |
109,390 |
|
|
$ |
121,618 |
|
|
$ |
356,584 |
|
|
$ |
321,994 |
|
|
|
|
TOWNEBANK |
|
Reconciliation of Non-GAAP Financial Measures |
|
(dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of
GAAP Earnings to Operating Earnings Excluding Certain Items
Affecting Comparability |
|
Three Months Ended |
| |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
| Net income (GAAP) |
|
$ |
44,862 |
|
|
$ |
41,716 |
|
|
$ |
38,333 |
|
|
$ |
46,685 |
|
|
$ |
50,169 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Adjustments |
|
|
|
|
|
|
|
|
|
|
|
Plus: Acquisition-related expenses, net of tax |
|
|
458 |
|
|
|
2,457 |
|
|
|
4,803 |
|
|
|
320 |
|
|
|
610 |
|
|
Plus: Initial provision for acquired loans, net of tax |
|
|
— |
|
|
|
— |
|
|
|
3,166 |
|
|
|
— |
|
|
|
— |
|
|
Less: Gain on sale of equity investments, net of noncontrolling
interest and tax |
|
|
(438 |
) |
|
|
(5,513 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Core operating earnings,
excluding certain items affecting comparability (non-GAAP) |
|
$ |
44,882 |
|
|
$ |
38,660 |
|
|
$ |
46,302 |
|
|
$ |
47,005 |
|
|
$ |
50,779 |
|
| Weighted average diluted
shares |
|
|
74,765,515 |
|
|
|
74,699,810 |
|
|
|
74,390,614 |
|
|
|
72,724,189 |
|
|
|
72,594,474 |
|
| Diluted EPS (GAAP) |
|
$ |
0.60 |
|
|
$ |
0.56 |
|
|
$ |
0.52 |
|
|
$ |
0.64 |
|
|
$ |
0.69 |
|
Diluted EPS, excluding certain
items affecting
comparability (non-GAAP) |
|
$ |
0.60 |
|
|
$ |
0.52 |
|
|
$ |
0.62 |
|
|
$ |
0.65 |
|
|
$ |
0.70 |
|
| Average assets |
|
$ |
16,762,859 |
|
|
$ |
16,826,965 |
|
|
$ |
16,349,040 |
|
|
$ |
15,929,756 |
|
|
$ |
16,304,294 |
|
| Average tangible equity |
|
$ |
1,460,024 |
|
|
$ |
1,447,955 |
|
|
|
1,424,030 |
|
|
$ |
1,352,891 |
|
|
$ |
1,374,574 |
|
| Average common tangible
equity |
|
$ |
1,443,453 |
|
|
$ |
1,432,506 |
|
|
$ |
1,409,091 |
|
|
$ |
1,336,356 |
|
|
$ |
1,357,845 |
|
Return on average assets,
excluding certain items
affecting comparability (non-GAAP) |
|
|
1.06 |
% |
|
|
0.92 |
% |
|
|
1.15 |
% |
|
|
1.17 |
% |
|
|
1.24 |
% |
| Return on average tangible
equity, excluding certain items affecting comparability
(non-GAAP) |
|
|
12.97 |
% |
|
|
11.50 |
% |
|
|
13.98 |
% |
|
|
14.36 |
% |
|
|
15.26 |
% |
| Return on average common
tangible equity, excluding certain items affecting comparability
(non-GAAP) |
|
|
13.12 |
% |
|
|
11.62 |
% |
|
|
14.13 |
% |
|
|
14.54 |
% |
|
|
15.45 |
% |
Efficiency ratio, excluding
certain items affecting
comparability (non-GAAP) |
|
|
67.76 |
% |
|
|
67.32 |
% |
|
|
64.32 |
% |
|
|
63.20 |
% |
|
|
62.16 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
TOWNEBANK |
|
Reconciliation of Non-GAAP Financial Measures |
|
(dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of
GAAP Earnings to Operating Earnings Excluding Certain Items
Affecting Comparability |
|
Nine Months Ended |
| |
|
September 30, |
|
September 30, |
|
|
|
|
2023 |
|
|
|
2022 |
|
| Net income (GAAP) |
|
$ |
124,911 |
|
|
$ |
142,302 |
|
| |
|
|
|
|
| Adjustments |
|
|
|
|
|
Plus: Acquisition-related expenses, net of tax |
|
|
7,718 |
|
|
|
705 |
|
|
Plus: Initial provision for acquired loans, net of tax |
|
|
3,166 |
|
|
|
— |
|
|
Less: Gain on sale of equity investments, net of noncontrolling
interest and tax |
|
|
(5,951 |
) |
|
|
— |
|
| Total charges, net of
taxes |
|
|
4,933 |
|
|
|
705 |
|
| Core operating earnings,
excluding certain items affecting comparability (non-GAAP) |
|
$ |
129,844 |
|
|
$ |
143,007 |
|
| Weighted average diluted
shares |
|
|
74,618,743 |
|
|
|
72,567,596 |
|
| Diluted EPS (GAAP) |
|
$ |
1.67 |
|
|
$ |
1.96 |
|
| Diluted EPS, excluding certain
items affecting comparability (non-GAAP) |
|
$ |
1.74 |
|
|
$ |
1.96 |
|
| Average assets |
|
$ |
16,647,804 |
|
|
$ |
16,382,006 |
|
| Average tangible equity |
|
$ |
1,444,135 |
|
|
$ |
1,380,940 |
|
| Average tangible common
equity |
|
$ |
1,428,475 |
|
|
$ |
1,364,397 |
|
| Return on average assets,
excluding certain items affecting comparability (non-GAAP) |
|
|
1.04 |
% |
|
|
1.17 |
% |
| Return on average tangible
equity, excluding certain items affecting comparability
(non-GAAP) |
|
|
12.81 |
% |
|
|
14.47 |
% |
| Return on average common
tangible equity, excluding certain items affecting comparability
(non-GAAP) |
|
|
12.95 |
% |
|
|
14.64 |
% |
| Efficiency ratio, excluding
certain items affecting comparability (non-GAAP) |
|
|
67.61 |
% |
|
|
64.39 |
% |
| |
|
|
|
|
TowneBank (NASDAQ:TOWN)
Historical Stock Chart
From Mar 2024 to Apr 2024
TowneBank (NASDAQ:TOWN)
Historical Stock Chart
From Apr 2023 to Apr 2024
