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TowneBank
(NASDAQ:TOWN)
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Rating:64Neutral
Price Target:
$41.00
â–²(11.87% Upside)
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
Very low debt-to-equity (~0.17) gives TowneBank durable capital flexibility. Conservative leverage supports steady lending through cycles, preserves regulatory headroom, and reduces refinancing risk, enabling sustained dividend capacity and strategic lending decisions over the next several quarters.
Negative Factors
Revenue Decline
A roughly 6% TTM revenue decline signals cooling top-line momentum. Persistent revenue contraction limits scale benefits, constrains reinvestment capacity, and pressures fee and lending growth assumptions, making it harder to restore prior profitability levels over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Very low debt-to-equity (~0.17) gives TowneBank durable capital flexibility. Conservative leverage supports steady lending through cycles, preserves regulatory headroom, and reduces refinancing risk, enabling sustained dividend capacity and strategic lending decisions over the next several quarters.
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
$3.49B
Dividend Yield4.72%
Average Volume (3M)690.47K
Price to Earnings (P/E)10.6
Beta (1Y)0.87
Revenue Growth35.08%
EPS Growth54.57%
CountryUS
Employees2,976
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.58
Shares Outstanding92,185,160
10 Day Avg. Volume699,663
30 Day Avg. Volume690,470
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$39.00Price Target Upside6.41% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)3.15
Revenue Forecast (FY)$996.49M
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 makes money through (1) net interest income and (2) noninterest income. Net interest income is earned from the spread between interest collected on earning assets—mainly loans (such as commercial real estate, commercial and ind...
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 | 1.30B | 1.01B | 1.02B | 942.55M | 742.95M | 720.08M |
| Gross Profit | 987.94M | 701.33M | 692.51M | 676.41M | 677.77M | 695.77M |
| EBITDA | 439.14M | 250.44M | 225.55M | 220.44M | 265.75M | 308.63M |
| Net Income | 313.79M | 169.53M | 161.76M | 153.72M | 188.99M | 215.38M |
Balance Sheet | ||||||
| Total Assets | 22.62B | 19.69B | 17.25B | 16.84B | 15.85B | 16.36B |
| Cash, Cash Equivalents and Short-Term Investments | 158.77M | 253.49M | 1.40B | 3.26B | 2.99B | 5.10B |
| Total Debt | 450.24M | 371.14M | 296.90M | 492.58M | 318.01M | 481.82M |
| Total Liabilities | 19.62B | 17.26B | 15.09B | 14.78B | 13.96B | 14.45B |
| Stockholders Equity | 2.99B | 2.42B | 2.14B | 2.04B | 1.87B | 1.90B |
Cash Flow | ||||||
| Free Cash Flow | 170.39M | 211.67M | 81.09M | 117.17M | 363.22M | 487.62M |
| Operating Cash Flow | 210.67M | 261.47M | 138.36M | 161.30M | 415.50M | 518.82M |
| Investing Cash Flow | 297.91M | -386.89M | -202.77M | -335.68M | -2.05B | -547.36M |
| Financing Cash Flow | -58.30M | 136.60M | 275.53M | 149.90M | -512.10M | 1.46B |
TowneBank Technical Analysis
Positive
36.65
Price Trends
35.48
Positive
34.52
Positive
33.79
Positive
Market Momentum
0.74
Negative
63.02
Neutral
82.56
Negative
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 36.65 is below the 20-day moving average (MA) of 36.66, above the 50-day MA of 35.48, and above the 200-day MA of 33.79, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 63.02 is Neutral, neither overbought nor oversold. The STOCH value of 82.56 is Negative, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.11B | 16.06 | 10.03% | 1.35% | 43.33% | 94.72% | |
77 Outperform | $3.97B | 11.79 | 8.72% | 3.66% | 31.11% | 107.51% | |
74 Outperform | $3.95B | 14.91 | 8.22% | 3.51% | 8.42% | -0.88% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $3.49B | 10.59 | 11.59% | 4.88% | 35.08% | 54.57% | |
61 Neutral | $3.42B | -7.86 | -10.21% | 3.69% | -56.95% | -299.45% | |
60 Neutral | $3.39B | 12.92 | 9.04% | 2.75% | -5.21% | 6.73% |
* Financial Sector Average
TOWN
TowneBank
38.14
4.90
14.74%
BKU
BankUnited
47.08
12.28
35.30%
CVBF
Cvb Financial
22.86
4.91
27.35%
SFNC
Simmons 1st Nat'l
23.86
5.61
30.74%
WSBC
WesBanco
41.81
13.30
46.63%
FBK
FB Financial
61.10
13.79
29.15%
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.