TowneBank reports developments tied to its community banking franchise, shareholder returns, governance, and expansion across Virginia, North Carolina, and South Carolina. The company provides business and personal banking through a regional office network and operates affiliated services including wealth management, insurance, employee benefits, mortgage banking, commercial mortgage brokerage, real estate, 1031 exchange services, and trust services.
Recurring company news includes quarterly and annual earnings, credit quality, liquidity and capital commentary, common-stock dividends, board appointments, bank acquisition activity, and completed portfolio changes such as the sale of its Resort Property Management segment. Updates also reflect the company’s local banking model and the contribution of nonbank financial-services affiliates.
TowneBank (NASDAQ: TOWN) has declared a cash dividend of $0.23 per common share for the third quarter, payable on October 14, 2022, to shareholders recorded on September 30, 2022. This decision underscores the bank's commitment to returning value to its shareholders. Future dividends will depend on the Board of Directors' approval and regulatory considerations. With total assets of $16.86 billion as of June 30, 2022, TowneBank continues to be a significant banking institution in Virginia, with over 40 banking offices across key regions.
TowneBank (NASDAQ: TOWN) has announced a definitive merger agreement with Farmers Bankshares, Inc. (OTCPK: FBVA). This merger is set to enhance TowneBank’s market share in the Virginia Beach-Norfolk-Newport News area and is valued at approximately $56 million, with Farmers shareholders receiving 0.6050 shares of TowneBank for each share owned. The combined assets will total $17.5 billion, with expectations for a 5% increase in earnings per share. The merger is anticipated to close in Q1 2023, pending regulatory and shareholder approvals.
TowneBank (TOWN) reported Q2 2022 earnings of $46.55 million ($0.64 per diluted share), down from $55.80 million ($0.77) in Q2 2021. Total revenues decreased by 0.20% to $166.98 million, primarily due to a $12.35 million drop in residential mortgage income. However, net interest income rose by $8.20 million. Loans held for investment increased by 10.63% year-over-year to $10.43 billion, while total deposits rose by 7.96% to $14.00 billion. The net interest margin was 2.88%, with a return on common equity of 10.03%. Noninterest income decreased by 12.90% to $57.64 million.
TowneBank (NASDAQ: TOWN) announced a 15% increase in its quarterly cash dividend, declaring $0.23 per common share. This dividend is payable on July 12, 2022 to shareholders of record as of June 30, 2022. This raises the annual dividend to $0.92 per share. The future dividends will depend on the Board of Directors' approval and regulatory restrictions. As of March 31, 2022, TowneBank holds $16.67 billion in total assets, making it one of Virginia's largest banks.
TowneBank (NASDAQ: TOWN) reported a first-quarter 2022 net income of $45.59 million, or $0.63 per diluted share, down from $69.00 million ($0.95 per share) in Q1 2021. Total revenues were $165.41 million, a decrease of 9.37%, primarily due to a decline in residential mortgage banking income. Despite the revenue drop, loans held for investment increased by 1.79% to $9.91 billion. Additionally, deposits rose 13.44% to $13.77 billion. The bank's net interest margin was 2.67%, and nonperforming assets decreased to 0.03% of total assets.
TowneBank (Nasdaq: TOWN) announced that three long-serving Board members, E. Lee Baynor, Thomas C. Broyles, and F. Lewis Wood, will not seek re-election and will transition to Emeritus status after the 2022 Annual Meeting of Shareholders. Executive Chairman G. Robert Aston emphasized their significant contributions to the bank's growth. Founded in 1999, TowneBank has over 40 branches in Virginia and North Carolina, with total assets of $16.36 billion as of December 31, 2021. The bank focuses on a mission of serving others and offering a broad range of financial services.
TowneBank (NASDAQ: TOWN) declared a cash dividend of $0.20 per common share for the first quarter of 2022, payable on April 8, 2022, to shareholders of record as of March 30, 2022. Future dividends remain subject to Board approval and regulatory restrictions. As of December 31, 2021, TowneBank held total assets of $16.36 billion, demonstrating its position as a leading financial institution in Virginia with over 40 banking offices across multiple states.
TowneBank (Nasdaq: TOWN) has successfully completed a public offering of $250 million in 3.125% fixed-to-floating rate subordinated notes due 2032. The notes, sold at par, generated net proceeds of approximately $247 million after expenses. The bank plans to utilize these funds for various corporate purposes, including redeeming existing subordinated notes, financing growth, share repurchases, and enhancing regulatory capital. Piper Sandler & Co. served as the sole book-running manager for this offering.
TowneBank (Nasdaq: TOWN) announced the pricing of $250 million in 3.125% fixed-to-floating rate subordinated notes due 2032. Initially, the notes will earn 3.125% interest until February 15, 2027, after which the rate will reset quarterly based on Three-Month Term SOFR plus 168 basis points. The offering is expected to close around February 9, 2022, with proceeds used for general corporate purposes, including redeeming existing debt and supporting regulatory capital levels. The notes will not be insured by the FDIC and are junior to existing senior debts.
TowneBank (Nasdaq: TOWN) announced the planned retirement of CEO J. Morgan Davis in 2022, who will remain until a successor is appointed. Mr. Davis, a founding member, has held significant roles since 1999, including President from 2011 to 2021 and CEO since 2018. The Board of Directors is overseeing the succession process to ensure management continuity. G. Robert Aston, the current Executive Chairman, confirmed he will continue in his role for the next three years. TowneBank, an asset company valued at $16 billion, offers various banking services across Hampton Roads, Virginia, and North Carolina.