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TowneBank
(NASDAQ:TOWN)
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Rating:64Neutral
Price Target:
$36.00
â–¼(-0.85% Downside)
Action:Reiterated
Date:05/14/26
Overall score reflects a strong, conservatively levered balance sheet as the main support, offset by cooling operating trends (declining revenue, lower ROE vs prior peaks) and weakening/volatile cash-flow momentum. Technicals are mixed with softer near-term momentum, while valuation is reasonable but not a clear bargain despite the supportive dividend yield.
Positive Factors
Conservative Balance Sheet
Low leverage (debt-to-equity ~0.17) provides durable financial flexibility: it improves loss absorption, supports regulatory capital requirements, allows continued lending in stress, and reduces refinancing risk — all structural strengths for a regional bank over months.
Negative Factors
Revenue Decline
A persistent ~6% revenue decline signals structural pressure on core lending or fee businesses. Over several quarters this erodes earnings power, limits internal capital generation for growth or dividends, and increases reliance on margin or cost improvements to restore growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Low leverage (debt-to-equity ~0.17) provides durable financial flexibility: it improves loss absorption, supports regulatory capital requirements, allows continued lending in stress, and reduces refinancing risk — all structural strengths for a regional bank over months.
Read all positive factors
TowneBank Key Performance Indicators (KPIs)
Any
Income Before Taxes by Segment
Displays pre-tax profit for each segment, highlighting the parts of the business that generate operational earnings before one-time items and tax effects; useful for spotting growth engines, underperforming units, and areas where costs or credit losses are trimming profitability.
Displays pre-tax profit for each segment, highlighting the parts of the business that generate operational earnings before one-time items and tax effects; useful for spotting growth engines, underperforming units, and areas where costs or credit losses are trimming profitability.
Data provided by:
The Fly
The FlyTowneBank (TOWN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.28B
Dividend Yield3.04%
Average Volume (3M)610.86K
Price to Earnings (P/E)17.9
Beta (1Y)0.84
Revenue Growth13.97%
EPS Growth-15.75%
CountryUS
Employees2,704
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.00
Shares Outstanding92,185,160
10 Day Avg. Volume724,513
30 Day Avg. Volume610,859
Financial Highlights & Ratios
PEG Ratio5.41
Price to Book (P/B)1.06
Price to Sales (P/S)2.54
P/FCF Ratio12.09
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue2.83
Enterprise Value/Gross Profit3.98
Enterprise Value/Ebitda12.44
Forecast
1Y Price Target
$38.00Price Target Upside4.65% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)3.17
Revenue Forecast (FY)$996.16M
TowneBank Business Overview & Revenue Model
Company Description
TowneBank functions as a comprehensive financial institution, delivering a wide array of retail and commercial banking services to individuals, businesses, and professionals. Its operations are structured across three primary divisions: Banking, R...
How the Company Makes Money
TowneBank primarily earns money through (1) net interest income and (2) noninterest income. Net interest income is generated by taking deposits (and other funding sources) and deploying them into interest-earning assets—mainly loans (such as comme...
TowneBank Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
76
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.08B | 1.01B | 1.02B | 942.55M | 742.95M | 720.08M |
| Gross Profit | 767.75M | 701.33M | 692.51M | 676.41M | 677.77M | 695.77M |
| EBITDA | 245.49M | 250.44M | 225.55M | 220.44M | 265.75M | 308.63M |
| Net Income | 159.44M | 169.53M | 161.76M | 153.72M | 188.99M | 215.38M |
Balance Sheet | ||||||
| Total Assets | 22.36B | 19.69B | 17.25B | 16.84B | 15.85B | 16.36B |
| Cash, Cash Equivalents and Short-Term Investments | 95.47M | 253.49M | 1.40B | 3.26B | 2.99B | 5.10B |
| Total Debt | 512.48M | 371.14M | 296.90M | 492.58M | 318.01M | 481.82M |
| Total Liabilities | 19.40B | 17.26B | 15.09B | 14.78B | 13.96B | 14.45B |
| Stockholders Equity | 2.95B | 2.42B | 2.14B | 2.04B | 1.87B | 1.90B |
Cash Flow | ||||||
| Free Cash Flow | 127.89M | 211.67M | 81.09M | 117.17M | 363.22M | 487.62M |
| Operating Cash Flow | 180.03M | 261.47M | 138.36M | 161.30M | 415.50M | 518.82M |
| Investing Cash Flow | 63.11M | -386.89M | -202.77M | -335.68M | -2.05B | -547.36M |
| Financing Cash Flow | 1.50M | 136.60M | 275.53M | 149.90M | -512.10M | 1.46B |
TowneBank Technical Analysis
Positive
36.31
Price Trends
34.67
Positive
34.01
Positive
33.48
Positive
Market Momentum
0.42
Positive
55.81
Neutral
17.56
Positive
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 35.57, above the 50-day MA of 34.67, and above the 200-day MA of 33.48, indicating a bullish trend. The MACD of 0.42 indicates Positive momentum. The RSI at 55.81 is Neutral, neither overbought nor oversold. The STOCH value of 17.56 is Positive, 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 | $3.94B | 14.92 | 9.16% | 4.00% | -2.88% | 5.03% | |
74 Outperform | $3.74B | 12.34 | 8.00% | 4.35% | 49.44% | 102.42% | |
70 Outperform | $2.90B | 21.11 | 7.50% | 1.34% | 18.85% | -1.29% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $3.28B | 17.87 | 6.38% | 3.04% | 13.97% | -15.75% | |
62 Neutral | $3.30B | -7.54 | -10.51% | 4.41% | -57.23% | -320.45% | |
59 Neutral | $3.51B | 13.45 | 9.02% | 2.71% | -5.12% | 11.35% |
* Financial Sector Average
TOWN
TowneBank
35.80
2.18
6.48%
BKU
BankUnited
48.23
12.00
33.14%
CVBF
Cvb Financial
22.47
2.47
12.37%
SFNC
Simmons 1st Nat'l
22.86
3.75
19.60%
WSBC
WesBanco
38.98
7.45
23.65%
FBK
FB Financial
56.68
9.17
19.31%
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.