Towne Bank

Latest Results (07.08.2024):

Quarterly Earnings

TowneBank reported earnings for the second quarter of 2024 amounting to $42.86 million, or $0.57 per diluted share. This is a slight increase from the $41.72 million, or $0.56 per diluted share, reported for the same quarter in 2023. Excluding certain items affecting comparability, core earnings were $42.56 million, or $0.57 per diluted share, marking a 10.10% increase from $38.66 million, or $0.52 per diluted share, in the second quarter of 2023.

Total Revenues

For the second quarter of 2024, TowneBank's total revenues were $174.97 million, a decrease of $6.60 million, or 3.63%, compared to the second quarter of 2023. The decline in net interest income by $4.56 million was driven by higher rates on deposit costs and a shift to higher-yielding deposit products. Additionally, noninterest income decreased by $2.04 million due to a significant gain in the second quarter of 2023 from the sale of BHHS Towne Realty.

Net Interest Income

Net interest income for TowneBank in the second quarter of 2024 was $109.05 million, down from $113.61 million in the same quarter of 2023. The decrease was primarily due to increased deposit costs, although this was partially offset by higher yields on earning assets. The cost of interest-bearing deposits rose to 3.32% from 2.28% in the second quarter of 2023, contributing to a significant increase in interest expense on deposits.

Provision for Credit Losses

TowneBank reported a benefit of $177 thousand in the provision for credit losses for the second quarter of 2024, compared to an expense of $3.56 million in the same quarter of the previous year. The allowance for credit losses on loans decreased by $283 thousand from the linked quarter, driven by net recoveries, strong credit quality, and improvements in macroeconomic forecast scenarios. Net loan recoveries were $19 thousand for the quarter.

Noninterest Income

Total noninterest income for TowneBank in the second quarter of 2024 was $65.92 million, a decrease of $2.04 million, or 2.99%, compared to the same quarter in 2023. Excluding a significant gain from the sale of BHHS TowneRealty in the second quarter of 2023, noninterest income actually increased by $6.80 million, or 11.50%. Residential mortgage banking income rose to $13.42 million, and total net insurance commissions increased by $1.53 million, or 6.81%, compared to the previous year.