TowneBank (TOWN) AI Stock Analysis

• Market Cap: $2.33B
• Dividend Yield: 3.26%
• Average Volume (3M): 312.18K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.96
• Revenue Growth: 8.97%
• EPS Growth: 4.82%
• Country: US
• Employees: 2,720
• Sector: Financial
• Sector Strength: 83
• Industry: Banks - Regional
• EPS (TTM): 2.15
• Shares Outstanding: 75,152,570
• 10 Day Avg. Volume: 473,935
• 30 Day Avg. Volume: 312,184
• PEG Ratio: 2.99
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.83
• Price to Cash Flow (P/CF): -27.30
• P/FCF Ratio: 12.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $41.50
• Price Target Upside: 33.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

TowneBank has a strong financial foundation with consistent revenue growth and effective cost management, but it faces challenges in cash flow generation. The technical indicators point to a bearish trend, which could impact short-term performance. Valuation metrics suggest the stock is fairly valued with moderate income potential, making it a stable, albeit not standout, investment in the regional banking sector.

TowneBank Business Overview & Revenue Model

Company Description

TowneBank provides retail and commercial banking services for individuals, commercial enterprises, and professionals. The company operates through three segments: Banking, Realty, and Insurance. It accepts various deposits, including demand deposits, savings accounts, money rate savings, certificates of deposit, and individual retirement accounts. The company also offers secured and unsecured personal loans for financing automobiles, home improvements, education, and personal investments; commercial loans for working capital, business expansion, and equipment and machinery purchases; and mortgage loans, as well as real estate acquisition, development, and construction loans. In addition, it provides other services, such as safe deposit boxes, treasury management services, direct deposit of payroll and social security checks, and automatic drafts for various accounts, as well as online, mobile, and on-call banking services. Further, the company offers documentation services to accomplish tax deferral to investors; investment and asset management services; commercial mortgage brokerage services; and other financial services, such as financial, retirement, and estate planning services, as well as assistance on various investment options comprising alternative investments, annuities, margin accounts, convertible bonds, and pension and profit-sharing plans. Additionally, it provides residential real estate, relocation, property management, vacations rental, and title and settlement services; and originates residential mortgage loans. The company also offers life, property, casualty, and vehicle insurance services; and employee benefit programs, such as health, dental, vision, and disability insurance. It operates in Richmond, Virginia, the Greater Hampton Roads region in southeastern Virginia, northeastern North Carolina, Raleigh, Charlotte, Greensboro, and Greenville, North Carolina. TowneBank was incorporated in 1998 and is headquartered in Portsmouth, Virginia.

How the Company Makes Money

TowneBank generates revenue through a diverse set of financial services. The primary source of income for the company is interest income, which is derived from loans and credit facilities extended to individuals and businesses. This includes commercial loans, consumer loans, and residential mortgages. Additionally, TowneBank earns non-interest income through fees and service charges associated with deposit accounts, transaction processing, and other banking services. The company also benefits from its insurance and investment services divisions, which provide revenue through insurance premiums, investment advisory fees, and brokerage commissions. Significant partnerships with local businesses and community initiatives further bolster its earnings by enhancing its market presence and customer base.

TowneBank Financial Statement Overview

Summary

TowneBank demonstrates solid financial health with steady revenue growth and effective cost management. The balance sheet is strong with low leverage, yet attention should be paid to the increasing liabilities. Although cash flow generation has weakened, the company remains cash efficient.

Income Statement

TowneBank has shown consistent revenue growth, with a notable increase from the previous year. The gross profit margin remains strong, as total revenue equals gross profit, indicating effective cost management. However, the lack of reported EBIT and EBITDA in the latest year limits the complete assessment of operating efficiency.

Balance Sheet

The company maintains a healthy debt-to-equity ratio, indicating prudent financial management and low leverage. The equity ratio reflects strong capitalization, supporting its stability. However, the slight increase in total liabilities warrants monitoring.

Cash Flow

Operating cash flow remains positive, but has decreased compared to previous years, suggesting potential challenges in sustaining cash generation. The free cash flow has also declined, impacting overall liquidity. Nevertheless, the company maintains a positive free cash flow to net income ratio, showing adequate cash efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
692.51M	675.44M	686.38M	679.00M	662.23M
	Gross Profit
692.51M	941.58M	677.14M	679.00M	662.23M
	EBIT
0.00	283.85M	206.87M	270.18M	177.44M
	EBITDA
0.00	220.44M	265.75M	310.96M	230.39M
	Net Income Common Stockholders
161.76M	153.72M	188.99M	215.38M	145.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.69B	189.00M	152.63M	5.10B	3.23B
	Total Assets
17.25B	16.84B	15.85B	16.36B	14.63B
	Total Debt
263.22M	459.75M	277.09M	405.02M	705.09M
	Net Debt
-1.08B	-668.60M	-875.74M	-2.89B	-1.16B
	Total Liabilities
15.09B	14.78B	252.09M	405.02M	705.09M
	Stockholders Equity
2.14B	2.04B	1.87B	1.90B	1.77B
Cash Flow		Free Cash Flow
81.09M	117.17M	363.22M	487.62M	82.10M
	Operating Cash Flow
138.36M	161.30M	415.50M	518.82M	127.89M
	Investing Cash Flow
-202.77M	-335.68M	-2.05B	-547.36M	-1.12B
	Financing Cash Flow
275.53M	149.90M	-512.10M	1.46B	2.41B

TowneBank Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TOWN, the sentiment is Negative. The current price of 31.07 is below the 20-day moving average (MA) of 33.02, below the 50-day MA of 34.61, and below the 200-day MA of 33.35, indicating a bearish trend. The MACD of -1.13 indicates Positive momentum. The RSI at 35.66 is Neutral, neither overbought nor oversold. The STOCH value of 28.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TOWN.

TowneBank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKU	72 Outperform	$2.22B	9.62	9.90%	3.91%	3.42%	30.07%
INDB	72 Outperform	$2.31B	12.02	6.52%	4.29%	6.21%	-16.59%
TOWN	66 Neutral	$2.33B	14.44	7.74%	3.26%	8.97%	4.82%
SFNC	65 Neutral	$2.24B	14.72	4.39%	5.92%	6.86%	-12.06%
Sector *	63 Neutral	$13.51B	9.48	9.36%	4.87%	16.09%	-8.30%
CVBF	61 Neutral	$2.28B	11.41	9.35%	4.88%	2.84%	-9.63%
PRK	60 Neutral	$2.32B	15.40	12.68%	2.96%	14.38%	19.61%