Overview
Virginia-based bank's Q4 revenue grew 25.29% yr/yr but missed analyst expectations
Adjusted EPS for Q4 missed analyst expectations
Company completed acquisitions of Old Point Financial and Village Bank
Outlook
TowneBank focuses on integrating recent acquisitions and expanding products in 2026
Company emphasizes strong balance sheet amid macroeconomic challenges
TowneBank did not provide specific financial guidance for 2026 in its press release
Result Drivers
ACQUISITIONS - Completed acquisitions of Old Point Financial and Village Bank added $1.53 bln in loans and $1.85 bln in deposits, boosting revenue
INTEREST INCOME - Net interest income increased $40.91 mln due to higher loan interest income and lower deposit costs
MARGIN EXPANSION - Net interest margin improved to 3.56% from 2.99% in the prior year quarter, aided by acquisition-driven growth and higher yields
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Miss | $219.94 mln | $224.64 mln (4 Analysts) |
Q4 Adjusted EPS | Miss | $0.70 | $0.71 (4 Analysts) |
Q4 EPS | $0.51 | ||
Q4 Net Income | $40.85 mln | ||
Q4 Credit Loss Allowance | $147.34 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for TowneBank is $41.00, about 13.1% above its January 27 closing price of $36.25
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago
Press Release: ID:nGNX5K7kRD
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)