TowneBank ( (TOWN) ) has released its Q3 earnings. Here is a breakdown of the information TowneBank presented to its investors.
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TowneBank, headquartered in Virginia, offers a comprehensive suite of financial services spanning banking, insurance, real estate, and wealth management, and is a prominent player in the local economic development across Virginia and North Carolina.
In the third quarter of 2024, TowneBank reported earnings of $42.95 million, reflecting a slight decrease from the previous year. The company highlighted its strategic partnership with Village Bank to bolster its presence in Richmond, Virginia, and continued strength in its core deposit franchise with the highest market share in its legacy regions.
Key financial metrics for the quarter include total revenues of $174.52 million, a 0.96% increase from the previous year, driven by a rise in noninterest income from residential mortgage banking and insurance commissions. The company also reported a marginal decline in net interest income due to increased deposit costs, although this was offset by higher asset yields. The net interest margin stood at 2.90%, slightly down from the previous year.
Additionally, TowneBank’s total deposits and loans held for investment showed growth year-over-year, although noninterest-bearing deposits saw a decline. The company’s strategic focus on balance sheet management and liquidity remains strong, with plans to expand Towne Insurance and explore new fee-based business opportunities.
Looking forward, TowneBank is poised for mid-single-digit growth, supported by a well-positioned balance sheet and a focus on expanding its insurance and fee-based business lines, as stated by company management.
