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

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