• TowneBank Reports First Quarter 2023 Earnings

    Источник: Nasdaq GlobeNewswire / 27 апр 2023 07:00:03   America/Chicago

    SUFFOLK, Va., April 27, 2023 (GLOBE NEWSWIRE) -- TowneBank ("Towne") (NASDAQ: TOWN) today reported earnings for the quarter ended March 31, 2023 of $38.33 million, or $0.52 per diluted share, compared to $45.59 million, or $0.63 per diluted share, for the quarter ended March 31, 2022. Excluding acquisition-related items, core earnings (non-GAAP) for the quarter ended March 31, 2023 were $46.30 million, or $0.62 per diluted share, compared to $45.63 million, or $0.63 per diluted share, for the quarter ended March 31, 2022.

    "The quarter presented unexpected industry challenges which highlighted our prudent approach to conservative balance sheet management and growth. Our capital, liquidity and core funding has been a foundational pillar of our Company since inception and remains strong in the current environment. We expect our proven business model, which emphasizes diverse revenues and deep relationships, will provide opportunities to position Towne to successfully navigate volatile market conditions," said G. Robert Aston, Jr., Executive Chairman.

    Highlights for First Quarter 2023:

    • Total revenues were $184.14 million, an increase of $18.73 million, or 11.32%, compared to first quarter 2022. An increase in net interest income of $24.17 million was partially offset by a $5.44 million decline in noninterest income, primarily related to the decline in residential mortgage banking income.
    • Pre-provision, pre-tax, net revenues (non-GAAP) were $59.60 million, an increase of $4.23 million, or 7.65%, compared to the prior year quarter.
    • Towne successfully completed the acquisition of Farmers Bankshares, Inc. and its wholly owned subsidiary Farmers Bank ("Farmers"), in January 2023. Included in that acquisition were $277.89 million in loans, $244.89 million in securities, and $514.57 million in deposits.
    • Loans held for investment were $11.17 billion, an increase of $1.26 billion, or 12.76%, compared to March 31, 2022, and $379.18 million, or 3.51%, compared to December 31, 2022. Excluding loans acquired in the quarter, total loans increased $0.99 billion, or 9.96%, compared to prior year and $101.29 million, or 3.81% on an annualized basis, compared to the linked quarter.
    • Total deposits were $13.60 billion, a marginal decrease of $173.67 million, or 1.26%, compared to prior year but an increase of $303.91 million, or 2.29%, from December 31, 2022. Excluding $514.57 million in acquired deposits, total deposits decreased $688.24 million, or 5.00%, compared to prior year and $210.66 million, or 6.43% on an annualized basis compare to the linked quarter.
    • Noninterest bearing deposits decreased 8.37%, to $5.07 billion, compared to prior year and represented 37.28% of total deposits. Compared to the linked quarter, noninterest bearing deposits decreased 3.72%.
    • Annualized return on common shareholders' equity was 8.05% compared to 9.81% in first quarter 2022. Annualized return on average tangible common shareholders' equity (non-GAAP) was 11.83% compared to 14.08% in first quarter 2022.
    • Net interest margin was 3.36% for the quarter and taxable equivalent net interest margin (non-GAAP) was 3.39% compared to the prior year quarter net interest margin of 2.67% and taxable equivalent net interest margin (non-GAAP) of 2.69%.
    • Effective tax rate of 20.03% in the quarter compared to 19.77% in first quarter 2022 and 19.90% in the linked quarter.

    "We were pleased to close the Farmers Bank partnership during the quarter and recently completed the systems conversion. Additionally, the growth in tangible book value during the quarter evidenced our well-structured approach to this transaction. Tougher economic conditions could present additional opportunities for us to grow both organically and through acquisition across our various lines of business. Our commitment to being a strong community asset in the markets we serve is unwavering, especially in challenging environments," stated William I. Foster III, President and Chief Executive Officer.

    Quarterly Net Interest Income:

    • Net interest income was $123.38 million compared to $99.20 million for the quarter ended March 31, 2022. The increase was driven by higher earning asset yields and increases in loan and investment securities balances, partially offset by increased deposit costs.
    • Tax-equivalent net interest margin (non-GAAP) was 3.39%, including purchase accounting accretion of 3 basis points, compared to 2.69%, including purchase accounting accretion of 6 basis points for first quarter 2022.
    • On an average basis, loans held for investment, with a yield of 4.88%, represented 74.61% of earning assets at March 31, 2023 compared to a yield of 4.01% and 64.26% of earning assets in the first quarter of 2022.
    • Total cost of deposits increased to 1.02% from 0.15% for the quarter ended March 31, 2022. Interest expense on deposits increased $29.04 million, or 593.38%, over the prior year quarter driven, primarily, by the increase in rate. Management expects continued pressure on the cost of deposits.
    • Rising funding costs continued to negatively impact profitability in our residential mortgage banking business.
    • Average interest-earning assets totaled $14.87 billion at March 31, 2023 compared to $15.05 billion at March 31, 2022, a decrease of 1.14%.
    • Average interest-bearing liabilities totaled $8.91 billion, an increase of $352.08 million, or 4.11% from prior year. Average short term FHLB borrowings were $263.33 million during the quarter.

    Quarterly Provision for Credit Losses:

    • The quarterly provision for credit losses was an expense of $11.67 million compared to a provision benefit of $1.45 million one year ago and an expense of $6.07 million in the linked quarter. The provision includes an initial provision for credit losses of $4.01 million related to loans and commitments acquired in the Farmers transaction.
    • The allowance for credit losses on loans in first quarter 2023, compared to the linked quarter, increased $9.19 million, $5.05 million of which resulted from the January 2023 acquisition of Farmers. In addition to the initial loan provision discussed above, acquisition accounting for the purchased loan portfolio included an increase in our allowance of $1.38 million on acquired loans with purchase credit deteriorated loan marks. Additional allowance increases were driven by loan growth, changes in our portfolio composition and updates in the macroeconomic forecast scenarios.
    • Net loan charge-offs were $3.87 million, driven primarily by the charge-off of a single credit relationship, compared to $0.13 million one year prior and $2.90 million in the linked quarter. The ratio of net charge-offs to average loans on an annualized basis was 0.14% in first quarter 2023, 0.01% in first quarter 2022, and 0.11% in the linked quarter.
    • The allowance for credit losses on loans represented 1.07% of total loans at March 31, 2023, 1.05% at March 31, 2022, and 1.03% on December 31, 2022. The allowance for credit losses on loans was 12.87 times nonperforming loans compared to 21.52 times at March 31, 2022 and 17.67 times at December 31, 2022.

    Quarterly Noninterest Income:

    • Total noninterest income was $60.77 million compared to $66.21 million in 2022, a decrease of $5.44 million, or 8.22%.
    • Residential mortgage banking income was $9.37 million compared to $14.64 million in first quarter 2022. Loan volume decreased to $416.22 million in first quarter 2023 from $819.99 million in 2022. The prolonged increase in mortgage rates has resulted in refinance activities dropping to 5% of total mortgage production volume, the lowest level since second quarter 2018. Residential purchase activity comprised 94.99% of production volume in the first quarter of 2023 compared to 77.93% in the prior year quarter.
    • Gross margins on residential mortgages increased 10 basis points from 3.01% in first quarter 2022 to 3.11% in the current quarter.
    • Total net insurance commissions increased $3.75 million, or 19.66%, to $22.82 million in first quarter 2023 compared to 2022. This resulted from increases in property and casualty commissions, which were driven by organic growth, higher contingency income, and commissions from two recent acquisitions.
    • Property management fee revenue decreased 9.40%, or $1.61 million, to $15.54 million in first quarter 2023 compared to 2022. Reservation income is down compared to the prior year due to decreased bookings at our property management locations.
    • Real estate brokerage income declined driven by a 29.04% decline in sale volume. The combination of higher mortgage loan rates and continued low home sales inventories impacted income in first quarter 2023.

    Quarterly Noninterest Expense:

    • Total noninterest expense was $124.40 million compared to $109.38 million in 2022, an increase of $15.02 million, or 13.73%. Increases in salaries and employee benefits of $5.46 million, acquisition-related expenses of $5.91 million, software expense of $1.13 million, and charitable contributions of $1.03 million were the primary sources of the increase.
    • Salaries and benefits expense increases were driven by annual base salary adjustments that went into effect July 2022 and an increase in the year-over-year number of employees, primarily related to the Farmers acquisition.
    • Software expense increased due to a number of ongoing projects related to recent acquisitions, our loan portfolio and mortgage.

    Consolidated Balance Sheet Highlights:

    • Total assets were $16.73 billion for the quarter ended March 31, 2023, an $0.89 billion increase compared to $15.85 billion at December 31, 2022. Total assets increased $63.89 million, or 0.38%, from $16.67 billion at March 31, 2022.
    • Loans held for investment increased $1.26 billion, or 12.76%, compared to prior year and $379.18 million, or 3.51%, compared to the linked quarter. Excluding loans acquired in the quarter, total loans increased $0.99 billion, or 9.96%, compared to prior year and $101.29 million, or 3.81% on an annualized basis, compared to the linked quarter.
    • Mortgage loans held for sale decreased $77.46 million, or 33.01%, compared to prior year but increased $54.82 million, or 53.57%, compared to the linked quarter.
    • Excluding $0.51 billion in acquired deposits, total deposits decreased $0.69 billion, or 5.00%, compared to prior year and $0.21 billion, or 1.58%, compared to the linked quarter.
    • Total borrowings increased $178.31 million, or 28.40%, over prior year and $488.24 million, or 153.53%, compared to the linked quarter. FHLB advances increased $474.82 million in the quarter.

    Investment Securities:

    • Total investment securities were $2.67 billion compared to $2.41 billion at December 31, 2022 and $2.30 billion at March 31, 2022. The weighted average duration of the portfolio at March 31, 2023 was 3.6 years. The carrying value of the available for sale debt securities portfolio included net unrealized losses of $165.71 million at March 31, 2023, compared to $191.05 million at December 31, 2022 and $70.32 million at March 31, 2022, related to rising rates rather than credit quality issues.

    Loans and Asset Quality:

    • Total loans held for investment were $11.17 billion at March 31, 2023 compared to $10.79 billion at December 31, 2022 and $9.91 billion at March 31, 2022.
    • Nonperforming assets were $9.89 million, or 0.06% of total assets, compared to $5.39 million, or 0.03%, at March 31, 2022.
    • Nonperforming loans were 0.08% of period end loans compared to 0.05% at March 31, 2022.
    • Foreclosed property increased marginally to $563.85 thousand from $560.15 thousand at March 31, 2022.

    Deposits and Borrowings:

    • Total deposits were $13.60 billion compared to $13.29 billion at December 31, 2022 and $13.77 billion at March 31, 2022.
    • Total loans held for investment to deposits were 82.17% compared to 81.20% at December 31, 2022 and 71.95% at March 31, 2022.
    • Noninterest-bearing deposits were 37.28% of total deposits at March 31, 2023 compared to 39.61% at December 31, 2022 and 40.17% at March 31, 2022.
    • Total borrowings were $0.81 billion compared to $0.32 billion at December 31, 2022 and $0.63 billion at March 31, 2022.

    Capital:

    • Common equity tier 1 capital ratio of 11.68%.
    • Tier 1 leverage capital ratio of 9.86%.
    • Tier 1 risk-based capital ratio of 11.80%.
    • Total risk-based capital ratio of 14.55%.
    • Book value per common share was $26.40 compared to $25.73 at December 31, 2022 and $25.61 at March 31, 2022.
    • Tangible book value per common share (non-GAAP) was $19.04 compared to $18.84 at December 31, 2022 and $18.67 at March 31, 2022.

    About TowneBank:
    Founded in 1999, TowneBank is a company built on relationships, offering a full range of banking and other financial services, with a focus of serving others and enriching lives. Dedicated to a culture of caring, Towne values all employees and members by embracing their diverse talents, perspectives, and experiences.

    TowneBank operates over 45 banking offices throughout Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina – serving as a local leader in promoting the social, cultural, and economic growth in each community. Towne offers a competitive array of business and personal banking solutions, delivered with only the highest ethical standards. Experienced local bankers providing a higher level of expertise and personal attention with local decision-making are key to the TowneBank strategy. TowneBank has grown its capabilities beyond banking to provide expertise through its controlled divisions and subsidiaries that include Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices Towne Realty, Towne 1031 Exchange, LLC, and Towne Vacations. With total assets of $16.73 billion as of March 31, 2023, TowneBank is one of the largest banks headquartered in Virginia.

    Non-GAAP Financial Measures:
    This press release contains certain financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such non-GAAP financial measures include the following: fully tax-equivalent net interest margin, core operating earnings, core net income, tangible book value per common share, pre-provision, pre-tax net revenues, total risk-based capital ratio, tier one leverage ratio, tier one capital ratio, and the tangible common equity to tangible assets ratio. Management uses these non-GAAP financial measures to assess the performance of TowneBank’s core business and the strength of its capital position. Management believes that these non-GAAP financial measures provide meaningful additional information about TowneBank to assist investors in evaluating operating results, financial strength, and capitalization. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant charges for credit costs and other factors. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The computations of the non-GAAP financial measures used in this presentation are referenced in a footnote or in the appendix to this presentation.

    Forward-Looking Statements:
    This press release contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only the beliefs, expectations, or opinions of TowneBank and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward-looking statements may be identified by the use of such words as: "believe," "expect," "anticipate," "intend," "plan,” "estimate," or words of similar meaning, or future or conditional terms, such as "will," "would," "should," "could," "may," "likely," "probably," or "possibly." These statements may address issues that involve significant risks, uncertainties, estimates, and assumptions made by management. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include competitive pressures in the banking industry that may increase significantly; changes in the interest rate environment that may reduce margins and/or the volumes and values of loans made or held as well as the value of other financial assets held; changes in the creditworthiness of customers and the possible impairment of the collectability of loans; general economic conditions, either nationally or regionally, that may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit or other services; unusual and infrequently occurring events, such as weather-related or natural disasters, acts of war or terrorism, or public health events (such as the COVID-19 pandemic); changes in the legislative or regulatory environment, including changes in accounting standards and tax laws, that may adversely affect our business; costs or difficulties related to the integration of the businesses we have acquired may be greater than expected; expected cost savings associated with pending or recently completed acquisitions may not be fully realized or realized within the expected time frame; cybersecurity threats or attacks, the implementation of new technologies, and the ability to develop and maintain reliable electronic systems; our competitors may have greater financial resources and develop products that enable them to compete more successfully; changes in business conditions; changes in the securities market; and changes in our local economy with regard to our market area. Any forward-looking statements made by us or on our behalf speak only as of the date they are made or as of the date indicated, and we do not undertake any obligation to update forward-looking statements as a result of new information, future events, or otherwise. For additional information on factors that could materially influence forward-looking statements included in this report, see the "Risk Factors" in TowneBank’s Annual Report on Form 10-K for the year ended December 31, 2022 and related disclosures in other filings that have been, or will be, filed by TowneBank with the Federal Deposit Insurance Corporation.

    Media contact:
    G. Robert Aston, Jr., Executive Chairman, 757-638-6780
    William I. Foster III, Chief Executive Officer, 757-417-6482

    Investor contact:
    William B. Littreal, Chief Financial Officer, 757-638-6813

    TOWNEBANK
    Selected Financial Highlights (unaudited)
    (dollars in thousands, except per share data)
       
      Three Months Ended
      March 31, December 31, September 30, June 30, March 31,
      2023   2022   2022   2022   2022 
    Income and Performance Ratios:         
     Total revenue$184,144  $175,307  $179,236  $166,980  $165,412 
     Net income 38,478   46,494   50,671   47,054   46,250 
     Net income available to common shareholders 38,333   46,685   50,169   46,547   45,586 
     Pre-provision, pre-tax, net revenues (non-GAAP) 59,602   64,357   66,700   57,748   55,369 
     Net income per common share - diluted 0.52   0.64   0.69   0.64   0.63 
     Book value per common share 26.40   25.73   25.08   25.48   25.61 
     Book value per common share - tangible (non-GAAP) 19.04   18.84   18.17   18.58   18.67 
     Return on average assets 0.95%  1.16%  1.22%  1.13%  1.13%
     Return on average assets - tangible (non-GAAP) 1.05%  1.25%  1.31%  1.22%  1.23%
     Return on average equity 7.99%  9.98%  10.60%  9.94%  9.73%
     Return on average equity - tangible (non-GAAP) 11.71%  14.26%  15.08%  14.20%  13.91%
     Return on average common equity 8.05%  10.07%  10.69%  10.03%  9.81%
     Return on average common equity - tangible (non-GAAP) 11.83%  14.44%  15.27%  14.37%  14.08%
     Noninterest income as a percentage of total revenue 33.00%  26.54%  30.80%  34.52%  40.03%
    Regulatory Capital Ratios (1):         
     Common equity tier 1 11.68%  11.92%  11.92%  11.83%  12.16%
     Tier 1 11.80%  12.04%  12.05%  11.97%  12.31%
     Total 14.55%  14.80%  14.80%  16.76%  17.34%
     Tier 1 leverage ratio 9.86%  9.87%  9.52%  9.19%  9.16%
    Asset Quality:         
     Allowance for credit losses on loans to nonperforming loans12.87x 17.67x 20.48x 18.94x 21.52x
     Allowance for credit losses on loans to period end loans 1.07%  1.03%  1.02%  1.00%  1.05%
     Nonperforming loans to period end loans 0.08%  0.06%  0.05%  0.05%  0.05%
     Nonperforming assets to period end assets 0.06%  0.04%  0.03%  0.04%  0.03%
     Net charge-offs (recoveries) to average loans (annualized) 0.14%  0.11%  (0.01)%  %  0.01%
     Net charge-offs (recoveries)$3,874  $2,904  $(187) $(80) $126 
               
     Nonperforming loans$9,322  $6,273  $5,250  $5,493  $4,825 
     Foreclosed property 564   560   186   563   560 
     Total nonperforming assets$9,886  $6,833  $5,436  $6,056  $5,385 
     Loans past due 90 days and still accruing interest$206  $324  $725  $232  $40 
     Allowance for credit losses on loans$120,002  $110,816  $107,497  $104,019  $103,833 
    Mortgage Banking:         
     Loans originated, mortgage$280,401  $299,298  $458,254  $588,529  $583,008 
     Loans originated, joint venture 135,818   157,511   234,443   249,279   236,980 
     Total loans originated$416,219  $456,809  $692,697  $837,808  $819,988 
     Number of loans originated 1,249   1,355   1,983   2,282   2,237 
     Number of originators 194   186   194   201   207 
     Purchase % 94.99%  95.08%  93.20%  92.27%  77.93%
     Loans sold$346,288  $483,254  $701,908  $759,073  $853,808 
     Rate lock asset$1,435  $482  $859  $1,935  $3,009 
     Gross realized gain on sales and fees as a % of loans originated 3.11%  2.93%  3.02%  2.92%  3.01%
    Other Ratios:         
     Net interest margin 3.36%  3.51%  3.28%  2.88%  2.67%
     Net interest margin-fully tax equivalent (non-GAAP) 3.39%  3.53%  3.31%  2.89%  2.69%
     Average earning assets/total average assets 90.98%  91.51%  91.92%  92.22%  92.24%
     Average loans/average deposits 82.40%  80.14%  76.82%  74.57%  71.61%
     Average noninterest deposits/total average deposits 38.35%  41.07%  41.77%  40.56%  40.49%
     Period end equity/period end total assets 11.89%  11.92%  11.56%  11.09%  11.28%
     Efficiency ratio (non-GAAP) 65.64%  61.99%  61.03%  63.51%  64.42%
     (1) Current reporting period regulatory capital ratios are preliminary.      


    TOWNEBANK
    Selected Data (unaudited)
    (dollars in thousands)
     
    Investment Securities       % Change
     Q1 Q1 Q4  Q1 23 vs.  Q1 23 vs.
    Available-for-sale securities, at fair value 2023   2022   2022   Q1 22  Q4 22
    U.S. agency securities$334,211  $338,490  $293,894   (1.26)%  13.72%
    U.S. Treasury notes 27,272   970   26,693   2,711.55%  2.17%
    Municipal securities 508,439   400,200   431,299   27.05%  17.89%
    Trust preferred and other corporate securities 76,965   85,792   78,436   (10.29)%  (1.88)%
    Mortgage-backed securities issued by GSE 1,132,746   1,022,169   1,011,666   10.82%  11.97%
    Allowance for credit losses (1,150)  (1,081)  (1,086)  6.38%  5.89%
    Total$2,078,483  $1,846,540  $1,840,902   12.56%  12.91%
    Gross unrealized gains (losses) reflected in financial statements        
    Total gross unrealized gains$2,218  $3,443  $1,111   (35.58)%  99.64%
    Total gross unrealized losses (167,929)  (73,758)  (192,163)  127.68%  (12.61)%
    Net unrealized gains (losses) and other adjustments on AFS securities$(165,711) $(70,315) $(191,052)  135.67%  (13.26)%
    Held-to-maturity securities, at amortized cost           
    U.S. agency securities$101,281  $83,004  $101,092   22.02%  0.19%
    U.S. Treasury notes 433,584   336,193   433,866   28.97%  (0.06)%
    Municipal securities 5,203   5,116   5,181   1.70%  0.42%
    Trust preferred corporate securities 2,210   2,260   2,223   (2.21)%  (0.58)%
    Mortgage-backed securities issued by GSE 5,948   6,811   6,113   (12.67)%  (2.70)%
    Allowance for credit losses (88)  (92)  (83)  (4.35)%  6.02%
    Total$548,138  $433,292  $548,392   26.51%  (0.05)%
                
    Total gross unrealized gains$392  $714  $320   (45.10)%  22.50%
    Total gross unrealized losses (24,018)  (11,915)  (29,802)  101.58%  (19.41)%
    Net unrealized gains (losses) in HTM securities$(23,626) $(11,201) $(29,482)  110.93%  (19.86)%
    Total unrealized (losses) gains on AFS and HTM securities$(189,337) $(81,516) $(220,534)  132.27%  (14.15)%
            % Change
    Loans Held For InvestmentQ1 Q1 Q4  Q1 23 vs.  Q1 23 vs.
      2023   2022   2022   Q1 22  Q4 22
    Real estate - construction and development$1,473,034  $1,236,294  $1,428,376   19.15%  3.13%
    Commercial real estate - owner occupied 1,675,119   1,561,117   1,580,099   7.30%  6.01%
    Commercial real estate - non owner occupied 2,908,791   2,697,929   2,830,620   7.82%  2.76%
    Real estate - multifamily 505,237   339,220   496,190   48.94%  1.82%
    Residential 1-4 family 1,734,698   1,392,052   1,634,062   24.61%  6.16%
    HELOC 387,967   376,480   395,526   3.05%  (1.91)%
    Commercial and industrial business (C&I) 1,297,707   1,212,973   1,256,697   6.99%  3.26%
    Government 510,494   518,839   512,265   (1.61)%  (0.35)%
    Indirect 582,306   485,620   568,190   19.91%  2.48%
    Consumer loans and other 98,432   88,784   92,577   10.87%  6.32%
    Total$11,173,785  $9,909,308  $10,794,602   12.76%  3.51%
                
            % Change
    DepositsQ1 Q1 Q4  Q1 23 vs.  Q1 23 vs.
      2023   2022   2022   Q1 22  Q4 22
    Noninterest-bearing demand$5,069,363  $5,532,337  $5,265,186   (8.37)%  (3.72)%
    Interest-bearing:           
    Demand and money market accounts 6,284,184   6,432,005   6,185,075   (2.30)%  1.60%
    Savings 389,173   393,119   374,987   (1.00)%  3.78%
    Certificates of deposits 1,855,411   1,414,339   1,468,975   31.19%  26.31%
    Total 13,598,131   13,771,800   13,294,223   (1.26)%  2.29%


    TOWNEBANK
    Average Balances, Yields and Rate Paid (unaudited)
    (dollars in thousands)
     
     Three Months Ended Three Months Ended Three Months Ended
     March 31, 2023 December 31, 2022 March 31, 2022
       Interest Average   Interest Average   Interest Average
     Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
     Balance Expense Rate (1) Balance Expense Rate (1) Balance Expense Rate (1)
    Assets:                 
    Loans (net of unearned income
    and deferred costs)
    $11,097,626  $133,536  4.88% $10,701,612  $124,064  4.60% $9,668,724  $95,596  4.01%
    Taxable investment securities 2,438,489   16,816  2.76%  2,288,344   14,251  2.49%  2,059,614   9,013  1.75%
    Tax-exempt investment securities 188,033   1,887  4.01%  140,108   1,262  3.60%  110,698   777  2.81%
    Total securities 2,626,522   18,703  2.85%  2,428,452   15,513  2.56%  2,170,312   9,790  1.80%
    Interest-bearing deposits 1,044,538   10,649  4.13%  1,321,964   11,387  3.42%  2,929,929   1,347  0.19%
    Loans held for sale 105,018   1,604  6.11%  124,949   1,842  5.90%  276,448   2,375  3.44%
    Total earning assets 14,873,704   164,492  4.49%  14,576,977   152,806  4.16%  15,045,413   109,108  2.94%
    Less: allowance for credit losses (114,447)      (108,288)      (106,172)    
    Total nonearning assets 1,589,783       1,461,067       1,372,757     
    Total assets$16,349,040      $15,929,756      $16,311,998     
    Liabilities and Equity:                 
    Interest-bearing deposits                 
    Demand and money market$6,217,754  $23,302  1.52% $6,022,582  $13,903  0.92% $6,178,217  $2,262  0.15%
    Savings 401,776   844  0.85%  378,816   763  0.80%  382,839   511  0.54%
    Certificates of deposit 1,683,354   9,788  2.36%  1,468,589   5,452  1.47%  1,472,942   2,121  0.58%
    Total interest-bearing deposits 8,302,884   33,934  1.66%  7,869,987   20,118  1.01%  8,033,998   4,894  0.25%
    Borrowings 355,833   3,915  4.40%  138,510   909  2.57%  135,775   137  0.40%
    Subordinated debt, net 250,066   2,169  3.47%  247,319   2,108  3.41%  386,934   4,120  4.26%
    Total interest-bearing liabilities 8,908,783   40,018  1.82%  8,255,816   23,135  1.11%  8,556,707   9,151  0.43%
    Demand deposits 5,164,415       5,484,477       5,467,153     
    Other noninterest-bearing liabilities 329,840       334,033       387,871     
    Total liabilities 14,403,038       14,074,326       14,411,731     
    Shareholders’ equity 1,946,002       1,855,430       1,900,267     
    Total liabilities and equity$16,349,040      $15,929,756      $16,311,998     
    Net interest income (tax-equivalent basis) (4)  $124,474      $129,671      $99,957   
    Reconciliation of Non-GAAP Financial Measures                
    Tax-equivalent basis adjustment   (1,096)      (888)      (753)  
    Net interest income (GAAP)  $123,378      $128,783      $99,204   
                      
    Interest rate spread (2)(4)    2.67%     3.05%     2.51%
    Interest expense as a percent of average earning assets   1.09%     0.63%     0.25%
    Net interest margin (tax equivalent basis) (3)(4)   3.39%     3.53%     2.69%
    Total cost of deposits    1.02%     0.60%     0.15%
                      

    (1) Yields and interest income are presented on a taxable-equivalent basis using the federal statutory tax rate of 21%.
    (2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax equivalent.
    (3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax equivalent.
    (4) Non-GAAP.

    TOWNEBANK
    Consolidated Balance Sheets
    (dollars in thousands, except share data)
      
       
     March 31, December 31,
      2023   2022 
     (unaudited) (audited)
    ASSETS   
    Cash and due from banks$97,502  $55,381 
    Interest-bearing deposits at FRB - Richmond 1,040,112   1,000,205 
    Federal funds sold and interest-bearing deposits in financial institutions 104,924   97,244 
    Total Cash and Cash Equivalents 1,242,538   1,152,830 
    Securities available for sale, at fair value (amortized cost of $2,245,344 and $2,033,040, and allowance for credit losses of $1,150 and $1,086 at March 31, 2023 and December 31, 2022, respectively) 2,078,483   1,840,902 
    Securities held to maturity, at amortized cost (fair value $524,600 and $518,993 at March 31, 2023 and December 31, 2022, respectively) 548,226   548,475 
    Less: allowance for credit losses (88)  (83)
    Securities held to maturity, net of allowance for credit losses 548,138   548,392 
    Other equity securities 13,341   6,424 
    FHLB stock 29,837   9,617 
    Total Securities 2,669,799   2,405,335 
    Mortgage loans held for sale 157,161   102,339 
    Loans, net of unearned income and deferred costs 11,173,785   10,794,602 
    Less: allowance for credit losses (120,002)  (110,816)
    Net Loans 11,053,783   10,683,786 
    Premises and equipment, net 321,944   304,802 
    Goodwill 477,234   458,482 
    Other intangible assets, net 73,238   43,163 
    BOLI 271,704   258,069 
    Other assets 463,076   436,461 
    TOTAL ASSETS$16,730,477  $15,845,267 
        
    LIABILITIES AND EQUITY   
    Deposits:   
    Noninterest-bearing demand$5,069,363  $5,265,186 
    Interest-bearing:   
    Demand and money market accounts 6,284,184   6,185,075 
    Savings 389,173   374,987 
    Certificates of deposit 1,855,411   1,468,975 
    Total Deposits 13,598,131   13,294,223 
    Advances from the FHLB 504,497   29,674 
    Subordinated debt, net 255,151   247,420 
    Repurchase agreements and other borrowings 46,602   40,918 
    Total Borrowings 806,250   318,012 
    Other liabilities 336,201   344,275 
    TOTAL LIABILITIES 14,740,582   13,956,510 
    Preferred stock, authorized and unissued shares - 2,000,000     
    Common stock, $1.667 par value: 150,000,000 shares authorized   
    74,804,431 and 72,841,379 shares issued at   
    March 31, 2023 and December 31, 2022, respectively 124,682   121,426 
    Capital surplus 1,109,387   1,052,262 
    Retained earnings 861,905   840,777 
    Common stock issued to deferred compensation trust, at cost   
    926,727 and 931,030 shares at March 31, 2023 and December 31, 2022, respectively (18,839)  (18,974)
    Deferred compensation trust 18,839   18,974 
    Accumulated other comprehensive income (loss) (121,297)  (140,505)
    TOTAL SHAREHOLDERS’ EQUITY 1,974,677   1,873,960 
    Noncontrolling interest 15,218   14,797 
    TOTAL EQUITY 1,989,895   1,888,757 
    TOTAL LIABILITIES AND EQUITY$16,730,477  $15,845,267 
     


    TOWNEBANK
    Consolidated Statements of Income (unaudited)
    (dollars in thousands, except per share data)
        
        
     Three Months Ended
     March 31,
      2023   2022 
    INTEREST INCOME:   
    Loans, including fees$132,768  $94,962 
    Investment securities 18,375   9,671 
    Interest-bearing deposits in financial institutions and federal funds sold 10,649   1,347 
    Mortgage loans held for sale 1,604   2,375 
    Total interest income 163,396   108,355 
    INTEREST EXPENSE:   
    Deposits 33,934   4,894 
    Advances from the FHLB 2,992   92 
    Subordinated debt, net 2,169   4,120 
    Repurchase agreements and other borrowings 923   45 
    Total interest expense 40,018   9,151 
    Net interest income 123,378   99,204 
    PROVISION FOR CREDIT LOSSES 11,670   (1,449)
    Net interest income after provision for credit losses 111,708   100,653 
    NONINTEREST INCOME:   
    Residential mortgage banking income, net 9,372   14,638 
    Insurance commissions and other title fees and income, net 22,823   19,074 
    Property management income, net 15,535   17,147 
    Real estate brokerage income, net 1,791   2,554 
    Service charges on deposit accounts 2,851   2,574 
    Credit card merchant fees, net 1,545   1,375 
    BOLI 1,672   1,717 
    Other income 5,177   7,129 
    Total noninterest income 60,766   66,208 
    NONINTEREST EXPENSE:   
    Salaries and employee benefits 69,420   63,963 
    Occupancy 9,064   8,327 
    Furniture and equipment 4,244   3,690 
    Amortization - intangibles 3,524   2,817 
    Software expense 5,624   4,492 
    Data processing 3,353   3,594 
    Professional fees 3,011   2,027 
    Advertising and marketing 4,401   4,127 
    Other expenses 21,756   16,342 
    Total noninterest expense 124,397   109,379 
    Income before income tax expense and noncontrolling interest 48,077   57,482 
    Provision for income tax expense 9,599   11,232 
    Net income$38,478  $46,250 
    Net income attributable to noncontrolling interest (145)  (664)
    Net income attributable to TowneBank$38,333  $45,586 
    Per common share information   
    Basic earnings$0.52  $0.63 
    Diluted earnings$0.52  $0.63 
    Cash dividends declared$0.23  $0.20 


    TOWNEBANK
    Consolidated Balance Sheets - Five Quarter Trend
    (dollars in thousands, except share data)
     
              
     March 31, December 31, September 30, June 30, March 31,
      2023   2022   2022   2022   2022 
     (unaudited) (audited) (unaudited) (unaudited) (unaudited)
    ASSETS         
    Cash and due from banks$97,502  $55,381  $97,290  $72,592  $74,991 
    Interest-bearing deposits at FRB - Richmond 1,040,112   1,000,205   1,245,067   2,341,942   2,857,327 
    Federal funds sold and interest-bearing deposits in financial institutions 104,924   97,244   96,862   35,087   34,684 
    Total Cash and Cash Equivalents 1,242,538   1,152,830   1,439,219   2,449,621   2,967,002 
    Securities available for sale 2,078,483   1,840,902   1,890,136   1,914,011   1,846,540 
    Securities held to maturity 548,226   548,475   548,745   549,083   433,384 
    Less: allowance for credit losses (88)  (83)  (83)  (85)  (92)
    Securities held to maturity, net of allowance for credit losses 548,138   548,392   548,662   548,998   433,292 
    Other equity securities 13,341   6,424   6,360   6,679   6,789 
    FHLB stock 29,837   9,617   9,475   10,432   10,432 
    Total Securities 2,669,799   2,405,335   2,454,633   2,480,120   2,297,053 
    Mortgage loans held for sale 157,161   102,339   165,023   211,716   234,620 
    Loans, net of unearned income and deferred costs 11,173,785   10,794,602   10,559,611   10,425,760   9,909,308 
    Less: allowance for credit losses (120,002)  (110,816)  (107,497)  (104,019)  (103,833)
    Net Loans 11,053,783   10,683,786   10,452,114   10,321,741   9,805,475 
    Premises and equipment, net 321,944   304,802   295,345   289,753   277,764 
    Goodwill 477,234   458,482   458,482   457,162   457,162 
    Other intangible assets, net 73,238   43,163   44,854   44,878   47,562 
    BOLI 271,704   258,069   256,074   254,478   253,112 
    Other assets 463,076   436,461   386,053   354,570   326,838 
    TOTAL ASSETS$16,730,477  $15,845,267  $15,951,797  $16,864,039  $16,666,588 
    LIABILITIES AND EQUITY         
    Deposits:         
    Noninterest-bearing demand$5,069,363  $5,265,186  $5,574,528  $5,723,415  $5,532,337 
    Interest-bearing:         
    Demand and money market accounts 6,284,184   6,185,075   6,042,417   6,384,818   6,432,005 
    Savings 389,173   374,987   387,622   388,364   393,119 
    Certificates of deposit 1,855,411   1,468,975   1,407,495   1,499,514   1,414,339 
    Total Deposits 13,598,131   13,294,223   13,412,062   13,996,111   13,771,800 
    Advances from the FHLB 504,497   29,674   29,850   55,024   55,196 
    Subordinated debt, net 255,151   247,420   247,265   497,061   496,757 
    Repurchase agreements and other borrowings 46,602   40,918   43,165   47,922   75,988 
    Total Borrowings 806,250   318,012   320,280   600,007   627,941 
    Other liabilities 336,201   344,275   375,869   397,388   387,087 
    TOTAL LIABILITIES 14,740,582   13,956,510   14,108,211   14,993,506   14,786,828 
              
    Preferred stock              
    Common stock, $1.667 par value 124,682   121,426   121,423   121,265   121,231 
    Capital surplus 1,109,387   1,052,262   1,052,374   1,051,384   1,050,387 
    Retained earnings 861,905   840,777   810,845   777,430   747,614 
    Common stock issued to deferred compensation         
    trust, at cost (18,839)  (18,974)  (18,862)  (19,349)  (18,323)
    Deferred compensation trust 18,839   18,974   18,862   19,349   18,323 
    Accumulated other comprehensive income (loss) (121,297)  (140,505)  (157,980)  (96,358)  (56,712)
    TOTAL SHAREHOLDERS’ EQUITY 1,974,677   1,873,960   1,826,662   1,853,721   1,862,520 
    Noncontrolling interest 15,218   14,797   16,924   16,812   17,240 
    TOTAL EQUITY 1,989,895   1,888,757   1,843,586   1,870,533   1,879,760 
    TOTAL LIABILITIES AND EQUITY$16,730,477  $15,845,267  $15,951,797  $16,864,039  $16,666,588 


    TOWNEBANK
    Consolidated Statements of Income - Five Quarter Trend (unaudited)
    (dollars in thousands, except share data)
      
      
     Three Months Ended
     March 31, December 31,  September 30, June 30, March 31,
      2023   2022   2022   2022   2022 
    INTEREST INCOME:          
    Loans, including fees$132,768  $123,395  $111,590  $101,043  $94,962 
    Investment securities 18,375   15,294   13,979   12,263   9,671 
    Interest-bearing deposits in financial institutions and federal funds sold 10,649   11,387   9,509   4,616   1,347 
    Mortgage loans held for sale 1,604   1,842   2,446   2,217   2,375 
    Total interest income 163,396   151,918   137,524   120,139   108,355 
    INTEREST EXPENSE:          
    Deposits 33,934   20,118   10,230   5,573   4,894 
    Advances from the FHLB 2,992   665   83   86   92 
    Subordinated debt, net 2,169   2,108   3,117   5,091   4,120 
    Repurchase agreements and other borrowings 923   244   56   49   45 
    Total interest expense 40,018   23,135   13,486   10,799   9,151 
    Net interest income 123,378   128,783   124,038   109,340   99,204 
    PROVISION FOR CREDIT LOSSES 11,670   6,074   3,925   56   (1,449)
    Net interest income after provision for credit losses 111,708   122,709   120,113   109,284   100,653 
    NONINTEREST INCOME:          
    Residential mortgage banking income, net 9,372   7,368   11,968   13,176   14,638 
    Insurance commissions and other title fees and income, net 22,823   17,324   19,435   19,746   19,074 
    Property management income, net 15,535   7,756   9,891   9,452   17,147 
    Real estate brokerage income, net 1,791   2,355   2,932   3,412   2,554 
    Service charges on deposit accounts 2,851   2,655   2,455   2,446   2,574 
    Credit card merchant fees, net 1,545   1,653   1,658   1,906   1,375 
    BOLI 1,672   1,985   1,585   1,853   1,717 
    Other income 5,177   5,428   5,274   5,649   7,129 
    Total noninterest income 60,766   46,524   55,198   57,640   66,208 
    NONINTEREST EXPENSE:          
    Salaries and employee benefits 69,420   61,307   65,463   64,892   63,963 
    Occupancy 9,064   9,252   8,748   8,342   8,327 
    Furniture and equipment 4,244   3,983   3,764   3,643   3,690 
    Amortization - intangibles 3,524   2,475   2,644   2,684   2,817 
    Software expense 5,624   5,111   4,594   4,762   4,492 
    Data processing 3,353   3,096   3,628   3,556   3,594 
    Professional fees 3,011   3,605   2,627   1,761   2,027 
    Advertising and marketing 4,401   3,489   4,290   4,091   4,127 
    Other expenses 21,756   18,823   16,276   14,994   16,342 
    Total noninterest expense 124,397   111,141   112,034   108,725   109,379 
    Income before income tax expense and noncontrolling interest 48,077   58,092   63,277   58,199   57,482 
    Provision for income tax expense 9,599   11,598   12,606   11,145   11,232 
    Net income 38,478   46,494   50,671   47,054   46,250 
    Net income attributable to noncontrolling interest (145)  191   (502)  (507)  (664)
    Net income attributable to TowneBank$38,333  $46,685  $50,169  $46,547  $45,586 
    Per common share information          
    Basic earnings$0.52  $0.64  $0.69  $0.64  $0.63 
    Diluted earnings$0.52  $0.64  $0.69  $0.64  $0.63 
    Basic weighted average shares outstanding 74,363,222   72,686,303   72,578,736   72,559,537   72,498,075 
    Diluted weighted average shares outstanding 74,390,614   72,724,189   72,594,474   72,568,886   72,562,122 
    Cash dividends declared$0.23  $0.23  $0.23  $0.23  $0.20 
               
               


    TOWNEBANK
    Banking Segment Financial Information (unaudited)
    (dollars in thousands)
     
           
     Three Months Ended Increase/(Decrease)
     March 31, December 31, 2023 over 2022
      2023   2022   2022  Amount  Percent
    Revenue          
    Net interest income$123,650  $96,770  $128,655  $26,880   27.78%
    Service charges on deposit          
    accounts 2,851   2,574   2,656   277   10.76%
    Credit card merchant fees 1,545   1,375   1,653   170   12.36%
    Other income 5,740   6,710   5,799   (970)  (14.46)%
    Total noninterest income 10,136   10,659   10,108   (523)  (4.91)%
    Total revenue 133,786   107,429   138,763   26,357   24.53%
               
    Provision for credit losses 11,754   (1,833)  6,312   13,587   (741.24)%
               
    Expenses          
    Salaries and employee benefits 43,193   37,059   37,788   6,134   16.55%
    Occupancy 6,233   5,659   6,500   574   10.14%
    Furniture and equipment 3,333   2,709   3,061   624   23.03%
    Amortization of intangible assets 1,281   827   676   454   54.90%
    Other expenses 28,444   18,228   24,141   10,216   56.05%
    Total expenses 82,484   64,482   72,166   18,002   27.92%
    Income before income tax, corporate allocation and noncontrolling interest 39,548   44,780   60,285   (5,232)  (11.68)%
    Corporate allocation 1,200   1,292   861   (92)  (7.12)%
    Income before income tax provision and noncontrolling interest 40,748   46,072   61,146   (5,324)  (11.56)%
    Provision for income tax expense 7,651   8,519   12,162   (868)  (10.19)%
    Net income 33,097   37,553   48,984   (4,456)  (11.87)%
    Noncontrolling interest             N/M 
    Net income attributable to TowneBank$33,097  $37,553  $48,984  $(4,456)  (11.87)%
               
    Efficiency ratio (non-GAAP) 60.70%  59.25%  51.52%  1.45%  2.45%


    TOWNEBANK
    Realty Segment Financial Information (unaudited)
    (dollars in thousands)
     
        
     Three Months Ended Increase/(Decrease)
     March 31, December 31, 2023 over 2022
      2023   2022   2022  Amount Percent
    Revenue         
    Residential mortgage brokerage
    income, net
    $9,794  $15,906  $8,292  $(6,112) (38.43)%
    Real estate brokerage income, net 1,791   2,554   2,354   (763) (29.87)%
    Title insurance and settlement fees 291   504   391   (213) (42.26)%
    Property management fees, net 15,535   17,147   7,757   (1,612) (9.40)%
    Income from unconsolidated
    subsidiary
     66   167   10   (101) (60.48)%
    Net interest and other income 184   2,932   626   (2,748) (93.72)%
    Total revenue 27,661   39,210   19,430   (11,549) (29.45)%
              
    Provision for credit losses (84)  384   (238)  (468) (121.88)%
              
    Expenses         
    Salaries and employee benefits 14,839   17,291   13,617   (2,452) (14.18)%
    Occupancy 2,021   1,898   1,970   123  6.48%
    Furniture and equipment 693   761   738   (68) (8.94)%
    Amortization of intangible assets 683   816   653   (133) (16.30)%
    Other expenses 8,437   10,852   8,056   (2,415) (22.25)%
    Total expenses 26,673   31,618   25,034   (4,945) (15.64)%
              
    Income before income tax, corporate allocation and noncontrolling interest 1,072   7,208   (5,366)  (6,136) (85.13)%
    Corporate allocation (600)  (1,000)  (600)  400  (40.00)%
    Income before income tax provision and noncontrolling interest 472   6,208   (5,966)  (5,736) (92.40)%
    Provision for income tax expense 182   1,374   (1,296)  (1,192) (86.75)%
    Net income 290   4,834   (4,670)  (4,544) (94.00)%
    Noncontrolling interest (145)  (664)  191   519  (78.16)%
    Net income attributable to TowneBank$145  $4,170  $(4,479) $(4,025) (96.52)%
              
    Efficiency ratio (non-GAAP) 93.96%  78.56%  125.48%  15.40% 19.60%
              


    TOWNEBANK
    Insurance Segment Financial Information (unaudited)
    (dollars in thousands)
     
          
     Three Months Ended Increase/(Decrease)
     March 31, December 31, 2023 over 2022
      2023   2022   2022  Amount Percent
    Commission and fee income         
    Property and casualty$18,129  $15,337  $15,221  $2,792  18.20%
    Employee benefits 4,587   4,161   3,949   426  10.24%
    Specialized benefit services 159   170   169   (11) (6.47)%
    Total commissions and fees 22,875   19,668   19,339   3,207  16.31%
              
    Contingency and bonus revenue 4,369   3,404   2,033   965  28.35%
    Other income 6   33   12   (27) (81.82)%
    Total revenue 27,250   23,105   21,384   4,145  17.94%
              
    Employee commission expense 4,553   4,332   4,270   221  5.10%
    Revenue, net of commission expense 22,697   18,773   17,114   3,924  20.90%
              
    Salaries and employee benefits 11,388   9,613   9,902   1,775  18.46%
    Occupancy 810   770   782   40  5.19%
    Furniture and equipment 218   220   184   (2) (0.91)%
    Amortization of intangible assets 1,560   1,174   1,146   386  32.88%
    Other expenses 1,264   1,502   1,927   (238) (15.85)%
    Total operating expenses 15,240   13,279   13,941   1,961  14.77%
    Income before income tax, corporate allocation and noncontrolling interest 7,457   5,494   3,173   1,963  35.73%
    Corporate allocation (600)  (292)  (261)  (308) 105.48%
    Income before income tax provision and noncontrolling interest 6,857   5,202   2,912   1,655  31.81%
    Provision for income tax expense 1,766   1,339   732   427  31.89%
    Net income 5,091   3,863   2,180   1,228  31.79%
    Noncontrolling interest            N/M 
    Net income attributable to TowneBank$5,091  $3,863  $2,180  $1,228  31.79%
              
    Provision for income taxes 1,766   1,339   732   427  31.89%
    Depreciation, amortization and interest expense 1,706   1,319   1,285   387  29.34%
    EBITDA (non-GAAP)$8,563  $6,521  $4,197  $2,042  31.31%
              
    Efficiency ratio (non-GAAP) 60.27%  64.48%  74.76%  (4.21)% (6.53)%


    TOWNEBANK
    Reconciliation of Non-GAAP Financial Measures
    (dollars in thousands)
     
     Three Months Ended
     March 31, March 31, December 31,
      2023   2022   2022 
          
    Return on average assets (GAAP) 0.95%  1.13%  1.16%
    Impact of excluding average goodwill and other
    intangibles and amortization
     0.10%  0.10%  0.09%
    Return on average tangible assets (non-GAAP) 1.05%  1.23%  1.25%
          
    Return on average equity (GAAP) 7.99%  9.73%  9.98%
    Impact of excluding average goodwill and other
    intangibles and amortization
     3.72%  4.18%  4.28%
    Return on average tangible equity (non-GAAP) 11.71%  13.91%  14.26%
          
    Return on average common equity (GAAP) 8.05%  9.81%  10.07%
    Impact of excluding average goodwill and other
    intangibles and amortization
     3.78%  4.27%  4.37%
    Return on average tangible common equity
    (non-GAAP)
     11.83%  14.08%  14.44%
          
    Book value (GAAP)$26.40  $25.61  $25.73 
    Impact of excluding average goodwill and other
    intangibles and amortization
     (7.36)  (6.94)  (6.89)
    Tangible book value (non-GAAP)$19.04  $18.67  $18.84 
          
    Efficiency ratio (GAAP) 67.55%  66.13%  63.40%
    Impact of exclusions (1.91)%   (1.71)%  (1.41)%
    Efficiency ratio (non-GAAP) 65.64%  64.42%  61.99%
          
    Average assets (GAAP)$16,349,040  $16,311,998  $15,929,756 
    Less: average goodwill and intangible assets 521,972   506,496   502,539 
    Average tangible assets (non-GAAP)$15,827,068  $15,805,502  $15,427,217 
          
    Average equity (GAAP)$1,946,002  $1,900,267  $1,855,430 
    Less: average goodwill and intangible assets 521,972   506,496   502,539 
    Average tangible equity (non-GAAP)$1,424,030  $1,393,771  $1,352,891 
          
    Average common equity (GAAP)$1,931,063  $1,884,101  $1,838,895 
    Less: average goodwill and intangible assets 521,972   506,496   502,539 
    Average tangible common equity (non-GAAP)$1,409,091  $1,377,605  $1,336,356 
          
    Net income (GAAP)$38,333  $45,586  $46,685 
    Amortization of intangibles, net of tax 2,784   2,225   1,955 
    Tangible net income (non-GAAP)$41,117  $47,811  $48,640 
          
    Net income (GAAP)$38,333  $45,586  $46,685 
    Provision for credit losses 11,670   (1,449)  6,074 
    Provision for income tax 9,599   11,232   11,598 
    Other nonrecurring (income) loss        
    Pre-provision, pre-tax net revenues (non-GAAP)$59,602  $55,369  $64,357 
          
    Noninterest expense (GAAP)$124,397  $109,379  $111,141 
    Less: amortization of intangibles 3,524   2,817   2,475 
    Noninterest expense net of amortization (non-GAAP)$120,873  $106,562  $108,666 


    TOWNEBANK
    Reconciliation of Non-GAAP Financial Measures
    (dollars in thousands, except per share data)
               
               
    Reconciliation of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability Three Months Ended
      March 31, December 31, September 30, June 30, March 31,
       2023   2022   2022   2022   2022 
    Net income (GAAP) $38,333  $46,685  $50,169  $46,547  $45,586 
               
    Acquisition-related items          
    Merger expenses  5,964   339   616   51   59 
    Initial provision for credit losses  4,008             
    Income tax expense (benefit)  (2,003)  (19)  (6)  (1)  (12)
    Total charges, net of taxes  7,969   320   610   50   47 
    Core operating earnings, excluding certain items affecting comparability (non-GAAP) $46,302  $47,005  $50,779  $46,597  $45,633 
    Weighted average diluted shares  74,390,614   72,724,189   72,594,474   72,568,886   72,562,122 
    Diluted EPS (GAAP) $0.52  $0.64  $0.69  $0.64  $0.63 
    Diluted EPS, excluding certain items affecting
    comparability (non-GAAP)
     $0.62  $0.65  $0.70  $0.64  $0.63 
    Average assets $16,349,040  $15,929,756  $16,304,294  $16,529,810  $16,311,998 
    Average tangible equity $1,424,030  $1,352,891   1,374,574  $1,374,683  $1,393,771 
    Average common tangible equity $1,409,091  $1,336,356  $1,357,845  $1,357,957  $1,377,605 
    Return on average assets, excluding certain items
    affecting comparability (non-GAAP)
      1.15%  1.17%  1.24%  1.13%  1.13%
    Return on average tangible equity, excluding certain items affecting comparability (non-GAAP)  13.98%  14.36%  15.26%  14.21%  13.93%
    Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP)  14.13%  14.54%  15.45%  14.39%  14.09%
    Efficiency ratio, excluding certain items affecting
    comparability (non-GAAP)
      64.32%  63.20%  62.16%  65.08%  66.09%

     


    Primary Logo

Опубликовать