TowneBank (TOWN) AI Stock Analysis

• Market Cap: $2.66B
• Dividend Yield: 3.09%
• Average Volume (3M): 311.39K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.92
• Revenue Growth: 9.48%
• EPS Growth: 12.83%
• Country: US
• Employees: 2,704
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.83
• Shares Outstanding: 81,057,180
• 10 Day Avg. Volume: 360,092
• 30 Day Avg. Volume: 311,389
• PEG Ratio: 3.25
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 2.49
• P/FCF Ratio: 31.47
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 2.64
• Enterprise Value/Gross Profit: 3.75
• Enterprise Value/Ebitda: 11.47
• 1Y Price Target: $42.00
• Price Target Upside: 24.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $36.00 ▲(6.95% Upside)

TowneBank's overall stock score reflects strong financial performance with solid revenue growth and efficient cost management. However, technical analysis indicates bearish momentum, and cash flow challenges present potential risks. Valuation is reasonable but not particularly attractive, contributing to a moderate overall score.

Positive Factors

Revenue Growth

TowneBank's consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial health.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and flexibility, allowing TowneBank to weather economic fluctuations.

Operational Efficiency

High operational efficiency through strong gross margins suggests effective cost control, which supports sustainable profitability.

Negative Factors

Cash Flow Challenges

Declining free cash flow growth may limit TowneBank's ability to invest in growth opportunities or return capital to shareholders.

Net Profit Margin Pressure

Decreasing net profit margins can indicate rising costs or competitive pressures, potentially impacting long-term profitability.

Cash Conversion Issues

Challenges in converting income to cash can strain liquidity, affecting TowneBank's operational and strategic flexibility.

TowneBank Business Overview & Revenue Model

Company Description

TowneBank (TOWN) is a regional bank headquartered in Portsmouth, Virginia, offering a full range of financial services to individuals, businesses, and communities. The bank operates primarily in the banking and financial services sector, providing products such as personal and commercial banking, mortgage lending, investment services, and insurance. TowneBank is committed to enhancing the financial well-being of its customers while contributing positively to the communities it serves.

How the Company Makes Money

TowneBank generates revenue primarily through interest income from loans, which includes personal loans, mortgages, and commercial loans. The bank charges interest on these loans, which constitutes a significant portion of its earnings. Additionally, TowneBank earns non-interest income through fees for services such as account maintenance, ATM transactions, wealth management, and insurance products. The bank's investment income from its securities portfolio also contributes to its revenue. Strategic partnerships with other financial institutions and businesses enhance its service offerings and customer base, further supporting its earnings.

TowneBank Financial Statement Overview

Summary

TowneBank demonstrates strong revenue growth and efficient cost management, reflected in solid margins. The balance sheet is healthy with low leverage and stable returns on equity. However, cash flow challenges, particularly in free cash flow growth, could pose risks if not addressed.

Income Statement

TowneBank's income statement shows a solid performance with a consistent revenue growth rate of 2.05% in the TTM. The gross profit margin is strong at 82.11%, indicating efficient cost management. However, the net profit margin has decreased from previous years, now at 19.25%, suggesting some pressure on profitability. The EBIT and EBITDA margins remain healthy, reflecting good operational efficiency.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.13, indicating conservative leverage. The return on equity is stable at 7.89%, showing consistent profitability relative to equity. The equity ratio is strong, suggesting a solid capital structure with a high proportion of equity financing.

Cash Flow

Cash flow analysis reveals challenges with a significant decline in free cash flow growth, down by 38.25% in the TTM. The operating cash flow to net income ratio is low, indicating potential issues in converting income into cash. However, the free cash flow to net income ratio remains reasonable, suggesting some level of cash generation efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.05B	1.02B	942.55M	742.95M	720.08M	742.25M
Gross Profit	740.59M	692.51M	676.41M	677.77M	695.77M	595.06M
EBITDA	241.96M	225.55M	220.44M	265.75M	308.63M	230.39M
Net Income	173.64M	161.76M	153.72M	188.99M	215.38M	145.53M
Balance Sheet
Total Assets	18.26B	17.25B	16.84B	15.85B	16.36B	14.63B
Cash, Cash Equivalents and Short-Term Investments	1.18B	1.40B	3.26B	2.99B	5.10B	3.23B
Total Debt	294.12M	296.90M	492.58M	318.01M	481.82M	772.88M
Total Liabilities	16.03B	15.09B	14.78B	13.96B	14.45B	12.84B
Stockholders Equity	2.23B	2.14B	2.04B	1.87B	1.90B	1.77B
Cash Flow
Free Cash Flow	101.00M	81.09M	117.17M	363.22M	487.62M	82.10M
Operating Cash Flow	165.88M	138.36M	161.30M	415.50M	518.82M	127.89M
Investing Cash Flow	-686.08M	-202.77M	-335.68M	-2.05B	-547.36M	-1.12B
Financing Cash Flow	330.45M	275.53M	149.90M	-512.10M	1.46B	2.41B

TowneBank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.66
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 33.66 is above the 20-day moving average (MA) of 32.87, above the 50-day MA of 33.59, and below the 200-day MA of 34.09, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 55.83 is Neutral, neither overbought nor oversold. The STOCH value of 74.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TOWN.

TowneBank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKU	73 Outperform	$3.25B	12.23	9.04%	2.82%	-5.44%	45.47%
CVBF	73 Outperform	$2.77B	13.70	9.10%	4.01%	-8.43%	3.75%
WSBC	71 Outperform	$3.11B	16.47	5.25%	4.87%	41.49%	-5.53%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TOWN	64 Neutral	$2.66B	14.60	7.37%	3.09%	9.48%	12.83%
FBK	64 Neutral	$2.99B	26.14	5.85%	1.36%	10.50%	-6.22%
SFNC	54 Neutral	$2.70B	―	-12.42%	4.68%	-55.53%	-387.04%

TowneBank Corporate Events

TowneBank Reports Strong Revenue Growth in Q2 2025

TowneBank is a prominent financial institution headquartered in Virginia, offering a comprehensive range of banking and financial services, with a focus on community engagement and relationship-building. In its second-quarter 2025 earnings report, TowneBank announced a net income of $38.84 million, a slight decrease from the previous year, but highlighted a record revenue of $207.44 million, showcasing strong growth driven by strategic acquisitions and organic expansion. Key financial metrics included a significant increase in net interest income and noninterest income, alongside a successful acquisition of Village Bank, which contributed to substantial growth in loans and deposits. Despite a decrease in net income, the company achieved a notable expansion in net interest margin and maintained robust asset quality. Looking ahead, TowneBank’s management remains optimistic about future growth opportunities, particularly with the upcoming completion of its partnership with Old Point, which is expected to further enhance earnings momentum in a challenging economic landscape.