TowneBank Q2 revenue more than doubles on near $200 mln sale gain
TowneBank Q2 revenue more than doubles on near $200 mln sale gain
Overview
U.S. regional bank's Q2 revenue more than doubled, beating analyst expectations
Adjusted EPS for Q2 slightly missed analyst consensus
Q2 results boosted by $198.55 mln gain from sale of Resort Property Management segment
Outlook
Company expects net interest income to be impacted by $6.56 mln accretion income in remainder of 2026
TowneBank says it remains focused on expanding Insurance business through organic growth and acquisitions
Company highlights strategic growth initiatives in the Carolinas as a priority
Result Drivers
ASSET SALE - $198.55 mln gain from sale of Resort Property Management segment boosted Q2 results and capital levels
NET INTEREST INCOME - Higher loan volumes and yields, along with lower deposit costs, drove net interest income growth
DEPOSIT GROWTH - Noninterest-bearing deposits rose 4.39% from the prior quarter, driven by growth in commercial deposits
Company press release: ID:nGNX21G8vt
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $444.27 mln | $292.62 mln (4 Analysts) |
Q2 Adjusted EPS | Miss | $0.78 | $0.79 (4 Analysts) |
Q2 EPS |
| $2.09 |
|
Q2 Net Income |
| $193.62 mln |
|
Q2 Credit Loss Allowance |
| $199.92 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "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 $39.00, about 8.1% above its July 22 closing price of $36.09
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago
Reuters Recommended Reads
July 22 - First Bancorp North Carolina Q2 profit rises on higher loan yields
July 22 - Live Oak Bancshares Q2 revenue beats estimates on loan, deposit growth
July 22 - Pinnacle Financial Q2 revenue more than doubles after Synovus merger
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)