TowneBank downgraded to Market Perform from Outperform at Keefe Bruyette

Keefe Bruyette downgraded TowneBank (TOWN) to Market Perform from Outperform with a price target of $38, down from $42. The company’s Q1 report is “disappointing” with a lower net interest margin and slower growth, the analyst tells investors in a research note. Keefe believes believe TowneBank “has lost its re-rating momentum” from slower asset repricing pace, slower growth, and potential for higher expenses given its hiring plans.