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:

Key Details

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.)