TowneBank reports Q3 EPS 60c, consensus 49c

Reports Q3 revenue $172.86M, consensus $172.42M. 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. Common equity tier 1 capital ratio of 12.19%. 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 was $19.28 compared to $19.31 at June 30, 2023 and $18.17 at 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.