TowneBank (TOWN)
NASDAQ:TOWN
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TowneBank
(NASDAQ:TOWN)
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Rating:63Neutral
Price Target:
$37.00
â–²(1.90% Upside)
Action:DowngradedDate:03/04/26
The score is driven primarily by solid financial quality—especially a conservatively levered balance sheet and improved 2025 cash flow—offset by cooling profitability and recent revenue decline. Technicals are a headwind with weak near-term momentum and the price below key short-term averages. Valuation is supportive (mid-teens P/E with a ~3% yield) but not compelling enough to overcome the mixed growth/margin backdrop.
Positive Factors
Conservative balance sheet
TowneBank's materially lower debt-to-equity and meaningful equity build provide durable loss-absorption and regulatory flexibility. A stronger capital base supports lending, M&A and dividend capacity across economic cycles, reducing solvency and funding risk over the next several quarters.
Negative Factors
Recent revenue decline
Two consecutive years of revenue decline indicate weakening core top-line momentum. For a regional bank, falling revenue constrains provisioning flexibility, limits reinvestment in deposits/loans and pressures long-term growth plans absent durable improvements in origination or fee income.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
TowneBank's materially lower debt-to-equity and meaningful equity build provide durable loss-absorption and regulatory flexibility. A stronger capital base supports lending, M&A and dividend capacity across economic cycles, reducing solvency and funding risk over the next several quarters.
Read all positive factors
TowneBank (TOWN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.20B
Dividend Yield3.04%
Average Volume (3M)311.39K
Price to Earnings (P/E)18.6
Beta (1Y)0.88
Revenue Growth14.22%
EPS Growth-15.75%
CountryUS
Employees2,704
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.22
Shares Outstanding92,185,160
10 Day Avg. Volume360,092
30 Day Avg. Volume311,389
Financial Highlights & Ratios
PEG Ratio5.44
Price to Book (P/B)1.06
Price to Sales (P/S)2.54
P/FCF Ratio12.09
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue2.84
Enterprise Value/Gross Profit3.97
Enterprise Value/Ebitda12.90
Forecast
1Y Price Target
$38.00Price Target Upside4.65% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)3.26
Revenue Forecast (FY)$1.06B
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 deposi...
How the Company Makes Money
TowneBank generates revenue primarily through interest income from loans and investments, as well as non-interest income from service fees and commissions. The key revenue streams include interest from commercial and residential loans, which are a...
TowneBank Key Performance Indicators (KPIs)
TowneBank Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.01B | 1.02B | 942.55M | 742.95M | 720.08M |
| Gross Profit | 701.33M | 692.51M | 676.41M | 677.77M | 695.77M |
| EBITDA | 210.22M | 225.55M | 220.44M | 265.75M | 308.63M |
| Net Income | 169.53M | 161.76M | 153.72M | 188.99M | 215.38M |
Balance Sheet | |||||
| Total Assets | 19.69B | 17.25B | 16.84B | 15.85B | 16.36B |
| Cash, Cash Equivalents and Short-Term Investments | 253.49M | 1.40B | 3.26B | 2.99B | 5.10B |
| Total Debt | 371.14M | 296.90M | 492.58M | 318.01M | 481.82M |
| Total Liabilities | 17.26B | 15.09B | 14.78B | 13.96B | 14.45B |
| Stockholders Equity | 2.42B | 2.14B | 2.04B | 1.87B | 1.90B |
Cash Flow | |||||
| Free Cash Flow | 211.67M | 81.09M | 117.17M | 363.22M | 487.62M |
| Operating Cash Flow | 261.47M | 138.36M | 161.30M | 415.50M | 518.82M |
| Investing Cash Flow | -386.89M | -202.77M | -335.68M | -2.05B | -547.36M |
| Financing Cash Flow | 136.60M | 275.53M | 149.90M | -512.10M | 1.46B |
TowneBank Technical Analysis
Positive
36.31
Price Trends
34.37
Positive
34.36
Positive
34.26
Positive
Market Momentum
0.60
Negative
67.60
Neutral
71.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TOWN, the sentiment is Positive. The current price of 36.31 is above the 20-day moving average (MA) of 34.30, above the 50-day MA of 34.37, and above the 200-day MA of 34.26, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 67.60 is Neutral, neither overbought nor oversold. The STOCH value of 71.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TOWN.
TowneBank Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.63B | 13.08 | 9.16% | 4.00% | -2.88% | 5.22% | |
73 Outperform | $3.31B | 9.35 | 8.00% | 4.35% | 49.44% | 102.42% | |
68 Neutral | $3.53B | 13.89 | 9.02% | 2.71% | -5.31% | 11.35% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $2.80B | 11.68 | 7.50% | 1.34% | 18.85% | -1.29% | |
63 Neutral | $3.20B | 18.57 | 6.38% | 3.04% | 14.22% | -15.75% | |
62 Neutral | $3.13B | 10.35 | -10.51% | 4.41% | -57.23% | -320.70% |
* Financial Sector Average
TOWN
TowneBank
34.76
2.97
9.36%
BKU
BankUnited
47.93
15.78
49.09%
CVBF
Cvb Financial
20.63
2.55
14.08%
SFNC
Simmons 1st Nat'l
21.59
3.38
18.56%
WSBC
WesBanco
34.44
5.53
19.13%
FBK
FB Financial
54.29
11.03
25.51%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.