- TowneBank (TOWN, Financial) reported a 45.8% increase in Q1 2025 earnings, reaching $0.67 per share.
- Total revenues rose by 14.93% to $192.04 million, with net interest margin improving to 3.14%.
- The bank completed a merger with Village Bank and Trust Financial Corp and announced a new agreement with Old Point Financial.
TowneBank (NASDAQ: TOWN) reported significant growth in its first quarter earnings for 2025, with net income of $50.59 million, or $0.67 per diluted share, compared to $34.69 million, or $0.46 per share, in the same period last year. Core earnings reached $50.98 million, equating to $0.68 per diluted share.
Key financial highlights for the quarter included a 14.93% increase in total revenues, which totaled $192.04 million. The bank's net interest income rose by $17.26 million, supported by an improved net interest margin of 3.14% compared to 2.72% in the previous year.
In terms of balance sheet performance, total deposits climbed 3.42% year-over-year to reach $14.61 billion, alongside a 1.75% growth in loans held for investment, which stood at $11.65 billion. Noninterest income also saw a 12.02% increase year-over-year.
The bank's asset quality remained robust, with nonperforming assets constituting only 0.04% of total assets. TowneBank maintained a conservative loan-to-deposit ratio at 79.77%, ensuring sufficient liquidity.
Strategically, TowneBank completed its merger with Village Bank and Trust Financial Corp on April 1, 2025, and announced a definitive agreement with Old Point Financial. These actions align with TowneBank’s strategy to enhance shareholder value through targeted partnerships with low execution risk.
Looking ahead, TowneBank remains committed to navigating potential economic headwinds with its strong capital position and strategic growth initiatives. The bank has approximately $760 million in securities cash flows available for reinvestment over the next 24 months, providing flexibility to adapt to changing market conditions.
