TowneBank Q3 revenue, adj EPS beat estimates on higher loan volumes and yields
TowneBank Q3 revenue, adj EPS beat estimates on higher loan volumes and yields
Overview
US regional bank's Q3 revenue rose 16% yr/yr, beating analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Quarterly results driven by higher loan volumes, improved yields; noninterest income fell after asset sale
Outlook
Company expects net purchase accounting accretion income of $3.5 mln for rest of 2026
TowneBank expects $11.61 mln in net purchase accounting accretion income in 2027
Company expects government guaranteed lending income to normalize in future quarters
Result Drivers
HIGHER LOAN VOLUMES AND YIELDS - Co said increased loan volumes and improved yields on loans and securities drove growth in net interest income
ASSET SALE IMPACT - Co said sale of Resort Property Management segment led to lower noninterest income
DEPOSIT COSTS - Co said lower deposit rates helped reduce total cost of deposits
Company press release: ID:nGNX65FF2L
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $257.89 mln | $249.03 mln (3 Analysts) |
Q3 Adjusted EPS | Beat | $0.91 | $0.82 (4 Analysts) |
Q3 EPS |
| $0.88 |
|
Q3 Net Income |
| $81.99 mln |
|
Q3 Credit Loss Allowance |
| $199.38 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 $40.00, about 9.6% above its October 27 closing price of $36.51
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago
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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.)