TowneBank ( (TOWN) ) has released its Q4 earnings. Here is a breakdown of the information TowneBank presented to its investors.
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TowneBank operates as a regional bank providing a wide array of financial services, including banking, mortgage, and insurance, with a strong presence in Virginia and North Carolina. Celebrating 25 years, it emphasizes community involvement and a culture of caring.
TowneBank reported an increase in its full-year earnings for 2024, reaching $161.76 million, or $2.15 per diluted share, up from $153.72 million, or $2.06 per diluted share, in 2023. Notably, the fourth quarter earnings rose to $41.27 million, or $0.55 per diluted share, compared to $28.80 million, or $0.39 per diluted share, in the same period the previous year.
Key financial metrics for 2024 included a slight decrease in total revenues to $693.75 million, primarily due to higher deposit costs. However, the company saw a significant boost in noninterest income, driven by increased residential mortgage banking income and insurance commissions. The loan portfolio grew by $130.03 million, and total deposits increased by $0.54 billion. The bank maintained a strong return on equity and saw a decline in its effective tax rate due to favorable tax credits.
In the fourth quarter, TowneBank experienced a 13.90% increase in total revenues to $177.16 million, supported by a rise in net interest income and a substantial jump in noninterest income. Despite a minor decline in noninterest-bearing deposits, the bank’s net interest margin improved, reflecting effective interest income strategies.
Looking ahead, TowneBank is optimistic about its growth prospects, especially with the impending acquisition of Village Bank. The company plans to explore further opportunities to enhance its fee-based business and maintain its strategic acquisition approach, promising a positive outlook for the coming year.
