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TowneBank (TOWN)

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29.95-0.32 (-1.06%)
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29.95 0.00 (0.00%)
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Previous Close30.27
Open30.30
Bid20.82 x 1000
Ask47.92 x 800
Day's Range29.70 - 30.93
52 Week Range15.03 - 30.93
Volume215,941
Avg. Volume181,695
Market Cap2.176B
Beta (5Y Monthly)1.19
PE Ratio (TTM)14.90
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & Yield0.72 (2.40%)
Ex-Dividend DateMar 29, 2021
1y Target EstN/A
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  • TowneBank Announces Quarterly Cash Dividend
    GlobeNewswire

    TowneBank Announces Quarterly Cash Dividend

    SUFFOLK, Va., March 02, 2021 (GLOBE NEWSWIRE) -- Hampton Roads based TowneBank (NASDAQ: TOWN) announced today that its Board of Directors on February 24, 2021 declared its first-quarter shareholder cash dividend of $0.18 per common share payable on April 9, 2021 to shareholders of record on March 30, 2021. The amount and declaration of future cash dividends are subject to Board of Directors’ approval in addition to regulatory restrictions. About TowneBank: Founded in 1999, TowneBank is a company built on relationships, offering a full range of banking and other financial services, with a mission of serving others and enriching lives. Dedicated to a culture of caring, Towne values all employees and members by embracing their diverse talents, perspectives, and experiences. Today, the bank operates over 40 banking offices throughout Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina – serving as a local leader in promoting the social, cultural, and economic growth in each community. Towne offers a competitive array of business and personal banking solutions, delivered with only the highest ethical standards. Experienced local bankers providing a higher level of expertise and personal attention with local decision-making are key to the TowneBank strategy. Towne has grown its capabilities beyond banking to provide expertise through its controlled divisions and subsidiaries that include Towne Investment Group, Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices Towne Realty, Towne 1031 Exchange, LLC, and Towne Vacations. With total assets of $14.63 billion as of December 31, 2020, TowneBank is one of the largest banks headquartered in Virginia. Media contact:G. Robert Aston, Jr., Executive Chairman, 757-638-6780J. Morgan Davis, President and Chief Executive Officer, 757-673-1673 Investor contact:William B. Littreal, Chief Financial Officer, 757-638-6813

  • Towne Insurance Agency Announces Expanded Executive Management Team and Naming of New President and Chief Executive Officer
    GlobeNewswire

    Towne Insurance Agency Announces Expanded Executive Management Team and Naming of New President and Chief Executive Officer

    SUFFOLK, Va., Feb. 19, 2021 (GLOBE NEWSWIRE) -- TowneBank (Nasdaq: Town) today reported that its wholly-owned insurance brokerage subsidiary, Towne Insurance Agency, has expanded its Executive Management Team in a move designed to accelerate the strategic development of the agency throughout Virginia, North Carolina and the southeastern United States. Effective February 16, 2021, W. Douglas Russell joined the Towne Insurance team as President and Chief Executive Officer, succeeding F. Dudley Fulton who will remain with the company as President Emeritus serving in a consulting capacity focused on agency acquisitions. Russell, 58 years of age with over 35 years of insurance industry experience, has held leadership positions with Henderson & Phillips, Inc., USI Insurance Services, Thomas Rutherfoord, Inc., Marsh & McLennan Agency, and most recently as President of Core Assurance Partners headquartered in Virginia Beach, Virginia. In addition to Russell, the expanded Executive Management team will consist of Christopher T. Rogerson, Chief Operating Officer; Richard P. Herzberg, President of Towne Benefits; Joseph D. Harrow, President of the Virginia Region of Towne Insurance; James E. Clement, Jr., President of the North Carolina and South Carolina Region of Towne Insurance; and B. Boyd Griffin, Jr, Executive Vice President and Chief Financial Officer. Under Fulton’s leadership, Towne Insurance has grown to be the fifth largest bank-owned insurance agency in the United States with over $78 million in revenue. “I continue to be excited about the future of our agency, and I can’t think of anyone better than Doug to lead Towne Insurance into the future,” said Fulton. “I am looking forward to my new role assisting him in our continued quest to acquire top notch agencies across our footprint.” “It is an honor to be selected to lead this extraordinary organization,” added Russell. “I know many of the Towne team members and have always admired and respected all insurance professionals associated with our company. I am humbled and excited about the opportunity to continue to build on the tremendous legacy that Dudley and the Towne Insurance team have built.” About TowneBank: Founded in 1999, TowneBank is a company built on relationships, offering a full range of banking and other financial services, with a mission of serving others and enriching lives. Dedicated to a culture of caring, Towne values all employees and members by embracing their diverse talents, perspectives, and experiences. Today, the bank operates over 40 banking offices throughout Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina – serving as a local leader in promoting the social, cultural, and economic growth in each community. Towne offers a competitive array of business and personal banking solutions, delivered with only the highest ethical standards. Experienced local bankers providing a higher level of expertise and personal attention with local decision-making are key to the TowneBank strategy. Towne has grown its capabilities beyond banking to provide expertise through its controlled divisions and subsidiaries that include Towne Investment Group, Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices Towne Realty, Towne 1031 Exchange, LLC, and Towne Vacations. With total assets of $14.63 billion as of December 31, 2020, TowneBank is one of the largest banks headquartered in Virginia. About Towne Insurance: Towne Insurance, a wholly owned subsidiary of TowneBank, is a premier insurance agency providing comprehensive solutions and risk management programs to businesses of all sizes, including property and casualty insurance, workers’ compensation, bonding, employee benefits and more. Additionally, personal lines agents specialize in home, auto, umbrella and flood insurance. Headquartered in Hampton Roads in southeastern Virginia, and serving communities across Virginia, North Carolina, and South Carolina, Towne’s over 400 experienced professionals work with the nation’s top-rated insurance companies to find members the right coverage at a competitive price. For more information, visit www.TowneInsurance.com. For more information, contact:Sara Jo Rubin, Rubin Communications Group, 757-456-5212

  • GlobeNewswire

    TowneBank Reports Full Year and Fourth Quarter Financial Results for 2020

    21st Consecutive Year of Earnings ImprovementSUFFOLK, Va., Jan. 28, 2021 (GLOBE NEWSWIRE) -- TowneBank (the “Company”) (Nasdaq: TOWN) today reported financial results for the full year and the fourth quarter ended December 31, 2020. For the year ended December 31, 2020, earnings were $145.54 million, or $2.01 per diluted share, compared to $138.78 million, or $1.92 per diluted share for the year ended December 31, 2019. Earnings in the fourth quarter of 2020 were $50.08 million, or $0.69 per diluted share, compared to fourth quarter 2019 earnings of $35.08 million, or $0.49 per diluted share. “We were pleased to deliver our 21St consecutive year of increased earnings during a year filled with challenges and opportunities. We achieved solid financial results while facing economic headwinds and prudently building substantial reserves to address future economic uncertainty. Our unique business model enabled our HomeTowne bankers to support our members and the communities we serve with more than $1.1 billion in funds through the Paycheck Protection Program. Additionally, our diverse sources of revenue resulted in record levels of total revenues which eclipsed $664 million for the year. TowneMortgage achieved record volumes and delivered a strong performance by closing more than $5.88 billion in mortgages. These accomplishments were the result of hard work and dedication from our more than 2,800 team members who work each day defining our culture of caring,” said G. Robert Aston, Jr., Executive Chairman. Quarter Highlights: Total revenues were $171.85 million, in fourth quarter 2020, an increase over the prior year quarter of $32.18 million, or 23.04%.Quarterly pre-provision, pre-tax, net revenues (non-GAAP) were $62.11 million, an increase of $15.65 million, or 33.67%.During fourth quarter 2020, we completed a core banking system conversion to allow the Company to provide a greater variety of financial services to our members through new technologies and enhanced digital solutions.Loans held for investment increased $1.21 billion, or 14.37%, from December 31, 2019, and decreased $141.50 million, or 1.45%, from September 30, 2020. The balance at December 31, 2020 and September 30, 2020 included $0.86 billion and $1.10 billion, respectively, of loans originated under the Small Business Administration's Paycheck Protection Program ("PPP"). Excluding PPP, loans held for investment increased $353.89 million, or 4.20%, compared to prior year, and $105.75 million, or 4.85% on an annualized basis, compared to the linked quarter.Total deposits were $11.57 billion, an increase of $2.30 billion, or 24.83%, compared to prior year but a decrease, due to expected runoff and seasonality, of $131.80 million, or 1.13%, from September 30, 2020.Noninterest bearing deposits increased by 48.23%, to $4.37 billion, compared to prior year, representing 37.80% of total deposits. Compared to the linked quarter, noninterest bearing deposits decreased 2.01%.In the quarter ended December 31, 2020, annualized return on average common shareholders' equity was 11.36% and annualized return on average tangible common shareholders' equity was 16.48% (non-GAAP). For the full 12 months, return on average common shareholders' equity was 8.52% and return on average tangible common shareholders' equity was 12.76% (non-GAAP).Net interest margin of 2.97% and taxable equivalent net interest margin of 2.98% (non-GAAP) compared to the prior year quarter of 3.33% and 3.35%, respectively.Effective tax rate of 17.21% compared to 18.17% at December 31, 2019. “In addition to our financial results, we concluded a multi-year system conversion during the fourth quarter. This system will enable us to improve our digital capabilities and drive revenue growth. We opened the door to over 700 new relationships through our efforts with the Paycheck Protection Program, having onboarded 65% of those new banking relationships throughout 2020. We continue to have strong interest in nonbank acquisitions and completed an insurance agency acquisition in late December,” said J. Morgan Davis, President and Chief Executive Officer. Quarterly Net Interest Income Compared to the Fourth Quarter of 2019: Net interest income was $100.61 million compared to $89.96 million for the quarter ended December 31, 2019. Included in net interest income was PPP interest and fee income of $11.29 million and $0, respectively.Taxable equivalent net interest margin was 2.98%, including purchase accounting accretion of 5 basis points and PPP accretion of 5 basis points, compared to 3.35%, including purchase accounting accretion of 9 basis points, for 2019.Average loans held for investment, with an average yield of 4.28%, represented 72.32% of average earning assets in the fourth quarter of 2020 compared to an average yield of 4.81%, which represented 77.25% of average earning assets in the fourth quarter of 2019.Total cost of deposits decreased to 0.37% from 0.92% at December 31, 2019.Average interest-earning assets totaled $13.48 billion at December 31, 2020 compared to $10.72 billion at December 31, 2019, an increase of 25.76%.Average interest-bearing liabilities totaled $8.03 billion, an increase of $0.97 billion, or 13.74%, from the prior year.Total interest expense decreased 42.04%, to $15.37 million in fourth quarter 2020 compared to $26.52 million in fourth quarter 2019, and decreased $3.40 million, or 18.11%, compared to the linked quarter. Quarterly Provision for Loan Losses: Recorded a provision for loan losses of $1.21 million compared to $3.60 million one year ago and $28.26 million in the linked quarter. A combination of modest loan growth, significantly higher provisions in the two previous quarters, and improvements in the economic forecast were the drivers in the lower fourth quarter 2020 provision.Net charge-offs were $0.11 million compared to $0.80 million one year prior. The ratio of net charge-offs (recoveries) to average loans on an annualized basis was 0.00% in fourth quarter 2020, (0.01)% in the linked quarter, and 0.04% in fourth quarter 2019.Recorded a provision for credit losses on off-balance sheet commitments of $0.06 million compared to $3.50 million in the linked quarter.The allowance for loan losses represented 1.25% of total loans compared to 1.22% at September 30, 2020 and 0.69% at December 31, 2019. Excluding PPP loans, which are fully government guaranteed, the allowance for credit losses (non-GAAP) was 1.37%, at December 31, 2020 and September 30, 2020. The allowance for loan losses was 10.74 times nonperforming loans compared to 7.31 times at September 30, 2020 and 3.34 times at December 31, 2019. Quarterly Noninterest Income Compared to the Fourth Quarter of 2019: Total noninterest income was $71.23 million compared to $49.71 million in 2019, an increase of $21.52 million, or 43.29%. Residential mortgage banking income increased $21.62 million, insurance commissions decreased $1.13 million, and real estate brokerage and property management income increased $2.49 million.Residential mortgage banking income was $37.50 million compared to $15.88 million in fourth quarter 2019. Loan volume in the current quarter was $1.69 billion, with purchase activity comprising 59.76%. Loan volume in fourth quarter 2019 was $860.16 million, with purchase activity of 70.32%. Loan volume in the linked quarter was $1.79 billion with purchase activity of 61.21%.Total insurance segment revenue decreased $2.89 million, or 14.51%, to $17.00 million in the fourth quarter of 2020. This decrease is attributable to several factors. The prior year quarter included proceeds from life insurance policies of $1.64 million. Contingency income and benefits commissions declined, compared to the prior year quarter. Additionally, there were no commissions on travel insurance in the fourth quarter of 2020, compared to $0.79 million in the prior year quarter, due to the sale of Red Sky Insurance in the third quarter of 2020. We also acquired an insurance agency, which is expected to add approximately $2.4 million in gross revenue for 2021, at the end of December 2020.Property management fee revenue increased 35.30%, or $1.48 million, as compared to fourth quarter 2019 due to increases in reservation levels and stronger fourth quarter 2020 advanced reservations.Service charges on deposit accounts declined $0.54 million, or 23.96%, compared to the prior year quarter due to fee waivers for members experiencing financial hardship and the waiving of various member service charges during our core conversion. Quarterly Noninterest Expense Compared to the Fourth Quarter of 2019: Total noninterest expense was $105.93 million compared to $92.34 million, an increase of $13.60 million, or 14.72%. This reflects increases of $5.46 million in salary and benefits expense, $1.09 million in software expense, and $0.68 million in occupancy expenses.FDIC insurance assessments increased $1.84 million in fourth quarter 2020 compared to 2019 due to the Company's receipt of small bank assessment credits for $1.66 million in the fourth quarter of 2019.Increases in salaries and benefits were driven by incentives related to a strong full-year performance and conversion and production related overtime. Software increases were largely driven by core conversion costs, and the costs associated with software needed to facilitate the adoption of CECL. Occupancy expense increases were driven by a full quarter expense related to the November 2019 expansion into the Greensboro, North Carolina market.Recorded a loss on early extinguishment of debt of $2.63 million in the fourth quarter of 2020, associated with restructuring of certain borrowings to reduce future interest expense and deploy excess liquidity. The impact of this nonrecurring expense was a reduction to our EPS of $0.03. Quarterly Income Taxes Compared to the Fourth Quarter of 2019: Income tax expense was $10.41 million compared to $7.79 million one year prior. This represents an effective tax rate of 17.21% compared to 18.17% in the fourth quarter of 2019. Consolidated Balance Sheet December 31, 2020 Compared to December 31, 2019 Total assets were $14.63 billion at December 31, 2020, an increase of 22.42%, compared to $11.95 billion at December 31, 2019. This increase was driven primarily by increased liquidity levels and additional loan balances attributable to PPP loans.Loans held for investment increased $1.21 billion, or 14.37%, compared to year end 2019, but decreased $0.14 billion compared to the linked quarter. Mortgage loans held for sale increased $121.57 million, or 29.00%, compared to prior year and decreased $128.22 million, or 19.17%, compared to the linked quarter.Total deposits increased $2.30 billion, or 24.83%, over December 31, 2019, and decreased $0.13 billion, or 1.13%, compared to the linked quarter. Investment Securities: Total investment securities were $1.42 billion compared to $1.38 billion at September 30, 2020 and $1.52 billion at December 31, 2019. The weighted average duration of the portfolio at December 31, 2020 was 4.10 years. The carrying value of the AFS debt securities portfolio included $58.32 million in net unrealized gains compared to $19.73 million in net unrealized gains at December 31, 2019. Loans and Asset Quality: Total loans held for investment were $9.63 billion at December 31, 2020 compared to $9.77 billion at September 30, 2020 and $8.42 billion at December 31, 2019.Nonperforming assets were $16.21 million, or 0.11% of total assets, compared to $32.80 million, or 0.27% of total assets, at December 31, 2019.Nonperforming loans were 0.12% of period end loans compared to 0.21% at December 31, 2019.Foreclosed property decreased to $4.28 million from $13.84 million at December 31, 2019.Expected loss estimates are subject to change based on continuing review of models and assumptions, portfolio performance, changes in forecasted macroeconomic conditions and loan mix which could result in material changes to the reserve in future periods.At December 31, 2020 we had $340.81 million in loan modifications made in accordance with section 4013 of the Cares Act, 64% are currently paying interest. Deposits and Borrowings: Total deposits were $11.57 billion compared to $11.70 billion at September 30, 2020 and $9.27 billion at December 31, 2019.Total loans to total deposits were 83.20% compared to 83.47% at September 30, 2020 and 90.81% at December 31, 2019.Non-interest bearing deposits were 37.80% of total deposits at December 31, 2020 compared to 38.14% at September 30, 2020 and 31.83% at December 31, 2019. Non-interest bearing deposits experienced typical seasonality during the fourth quarter.Total borrowings were $0.96 billion compared to $1.04 billion and $0.77 billion at September 30, 2020 and December 31, 2019, respectively. Capital: Common equity tier 1 capital ratio of 11.87%.Tier 1 leverage capital ratio of 8.99%.Tier 1 risk-based capital ratio of 12.04%.Total risk-based capital ratio of 15.42%.Book value was $24.31 compared to $23.83 at September 30, 2020 and $22.58 at December 31, 2019.Tangible book value (non-GAAP) was $17.46 compared to $17.06 at September 30, 2020 and $15.69 at December 31, 2019. Annual Meeting of Shareholders:TowneBank intends to hold its 2021 Annual Meeting of Shareholders at 11:30 a.m. on Wednesday, May 26, 2021 at the Virginia Beach Convention Center, 1000 19th Street in Virginia Beach, Virginia. About TowneBank:As one of the top community banks in Virginia and North Carolina, TowneBank operates 42 banking offices serving Chesapeake, Chesterfield County, Glen Allen, Hampton, James City County, Mechanicsville, Newport News, Norfolk, Portsmouth, Richmond, Suffolk, Virginia Beach, Williamsburg, and York County in Virginia, along with Raleigh, Cary, Charlotte, Greensboro, Greenville, Moyock, Grandy, Camden County, Southern Shores, Corolla and Nags Head in North Carolina. TowneBank also offers a full range of financial services through its controlled divisions and subsidiaries that include Towne Investment Group, Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices Towne Realty, Towne 1031 Exchange, LLC, and Towne Vacations. Local decision-making is a hallmark of its hometown banking strategy that is delivered through the leadership of each group’s President and Board of Directors. With total assets of $14.63 billion as of December 31, 2020, TowneBank is one of the largest banks headquartered in Virginia. Non-GAAP Financial Measures: This press release contains financial information determined by methods other than in accordance with GAAP. The Company's management uses these non-GAAP financial measures in their analysis of the Company's performance. These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or transactions that are infrequent in nature. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP disclosures are included as tables at the end of this release. Forward-Looking Statements: Certain statements contained in this release constitute forward-looking statements within the meaning of U.S. federal securities laws. These forward-looking statements speak only as of the date of this release, are based on current expectations, and involve a number of assumptions. These include statements regarding TowneBank’s future economic performance, financial condition, prospects, growth, strategies and expectations, and objectives of management, and are generally identified by the use of words such as “believe,” “expect,” “intend,” “anticipate,” “estimate,” or “project” or similar expressions. TowneBank intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and is including this statement for purposes of these safe harbor provisions. You should not place undue reliance on forward-looking statements, which are subject to assumptions that are subject to change. TowneBank’s ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain. These forward-looking statements are subject to a number of factors and uncertainties that could cause actual results to differ from those indicated or implied in the forward-looking statements and such differences may be material. Factors which could have a material effect on the operations and future prospects of TowneBank include but are not limited to: the impact of the COVID-19 pandemic and the associated efforts to limit its spread, changes in interest rates, general economic and business conditions; legislative/regulatory changes; the monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System; the quality and composition of TowneBank’s loan and securities portfolios; demand for loan products; deposit flows; competition; demand for financial services in TowneBank’s market areas; cybersecurity threats or attacks, the implementation of new technologies, and the ability to develop and maintain reliable electronic systems; changes in the securities markets; changes in accounting principles, policies and guidelines; and other risk factors detailed from time to time in filings made by TowneBank with the Federal Deposit Insurance Corporation. TowneBank undertakes no obligation to update or clarify these forward-looking statements, whether as a result of new information, future events or otherwise. Media contact:G. Robert Aston, Jr., Executive Chairman, 757-638-6780J. Morgan Davis, President and Chief Executive Officer, 757-673-1673 Investor contact:William B. Littreal, Chief Financial Officer, 757-638-6813 TOWNEBANKSelected Financial Highlights (unaudited)(dollars in thousands, except per share data) Three Months Ended December 31, September 30, June 30, March 31, December 31, 2020 2020 2020 2020 2019Income and Performance Ratios: Total Revenue$171,848 $192,135 $162,656 $137,696 $139,671 Net income53,891 50,715 37,222 27,605 35,948 Net income available to common shareholders50,082 34,464 34,605 26,384 35,075 Pre-provision, pre-tax, net revenues (non-GAAP)62,107 73,903 69,014 39,587 46,462 Net income per common share - diluted0.69 0.48 0.48 0.36 0.49 Book value per common share24.31 23.83 23.50 22.77 22.58 Book value per share - tangible (non-GAAP)17.46 17.06 16.68 15.91 15.69 Return on average assets1.35% 0.89% 0.97% 0.88% 1.16% Return on average assets - tangible (non-GAAP)1.46% 0.97% 1.07% 1.00% 1.30% Return on average equity11.26% 7.85% 8.18% 6.37% 8.44% Return on average equity - tangible (non-GAAP)16.28% 11.66% 12.32% 9.91% 12.97% Return on average common equity11.36% 7.91% 8.24% 6.42% 8.51% Return on average common equity - tangible (non-GAAP)16.48% 11.79% 12.44% 10.01% 13.12% Noninterest income as a percentage of total revenue41.45% 49.64% 42.66% 35.00% 35.59%Regulatory Capital Ratios (1): Common equity tier 111.87% 11.75% 11.54% 11.23% 11.46% Tier 112.04% 11.91% 11.67% 11.35% 11.49% Total15.42% 15.35% 14.91% 14.40% 14.58% Tier 1 leverage ratio8.99% 8.89% 9.05% 10.11% 9.95%Asset Quality: Allowance for loan losses to nonperforming loans10.74x 7.31x 5.34x 3.85x 3.34x Allowance for loan losses to period end loans1.25% 1.22% 0.92% 0.73% 0.69% Allowance for loan losses to period end loans excluding PPP loans (non-GAAP)1.37% 1.37% 1.04% 0.73% 0.69% Nonperforming loans to period end loans0.12% 0.17% 0.17% 0.19% 0.21% Nonperforming assets to period end assets0.11% 0.19% 0.19% 0.24% 0.27% Net charge-offs (recoveries) to average loans (annualized)—% (0.01)% —% 0.03% 0.04% Nonperforming loans$11,188 $16,295 $16,935 $16,700 $17,437 Former bank premises750 750 — — 1,521 Foreclosed property4,276 11,695 12,315 13,053 13,839 Total nonperforming assets$16,214 $28,740 $29,250 $29,753 $32,797 Loans past due 90 days and still accruing interest$528 $19 $464 $91 $309 Allowance for loan losses120,157 119,058 90,467 64,372 58,234 Mortgage Banking: Loans originated, mortgage$1,257,963 $1,292,801 $1,116,782 $718,681 $628,279 Loans originated, joint venture429,848 498,100 357,815 204,522 231,879 Total loans originated$1,687,811 $1,790,901 $1,474,597 $923,203 $860,158 Number of loans originated5,481 5,817 4,818 3,025 2,984 Number of originators228 224 216 223 217 Purchase %59.76% 61.21% 51.26% 61.31% 70.32% Loans sold$1,845,926 $1,833,590 $1,398,649 $809,834 $879,910 Rate lock asset$11,781 $10,480 $7,202 $3,691 $1,525 Gross realized gain on sales and fees as a % of loans originated4.02% 3.65% 3.17% 1.80% 3.38%Other Ratios: Net interest margin2.97% 2.70% 2.85% 3.35% 3.33% Net interest margin-fully tax equivalent (non-GAAP)2.98% 2.72% 2.87% 3.37% 3.35% Average earning assets/total average assets91.59% 92.09% 91.33% 89.15% 89.57% Average loans/average deposits83.42% 86.29% 91.81% 92.99% 88.41% Average noninterest deposits/total average deposits39.61% 37.76% 36.52% 32.21% 32.14% Period end equity/period end total assets12.20% 11.82% 11.05% 13.19% 13.84% Efficiency ratio (non-GAAP)60.02% 57.36% 55.17% 70.79% 63.96% (1) Current reporting period regulatory capital ratios are preliminary. TOWNEBANKSelected Data (unaudited)(dollars in thousands) Investment Securities % Change Q4 Q4 Q3 Q4 20 vs. Q4 20 vs.Available-for-sale securities, at fair value2020 2019 2020 Q4 19 Q3 20U.S. agency securities$184,657 $129,038 $167,275 43.10% 10.39%U.S. Treasury notes1,000 1,000 1,006 —% (0.60)%Municipal securities353,651 223,106 292,792 58.51% 20.79%Trust preferred and other corporate securities31,499 53,367 24,236 (40.98)% 29.97%Mortgage-backed securities issued by GSE and GNMA797,765 1,034,797 825,378 (22.91)% (3.35)%Allowance for credit losses(348) — (4) n/m n/mTotal$1,368,224 $1,441,308 $1,310,683 (5.07)% 4.39% Gross unrealized gains (losses) reflected in financial statements Total gross unrealized gains$60,025 $23,950 $62,206 150.63% (3.51)%Total gross unrealized losses(1,703) (4,215) (773) (59.60)% 120.31%Net unrealized gain (loss) on AFS securities$58,322 $19,735 $61,433 195.53% (5.06)% Held-to-maturity securities, at amortized cost Municipal securities$5,012 $29,167 $2,333 (82.82)% 114.83%Trust preferred corporate securities2,321 2,369 4,992 (2.03)% (53.51)%Mortgage-backed securities issued by GSE and GNMA9,179 12,152 9,806 (24.47)% (6.39)%Allowance for credit losses(97) — (90) n/a 7.78%Total$16,415 $43,688 $17,041 (62.43)% (3.67)% Gross unrealized gains (losses) not reflected in financial statements Total gross unrealized gains$1,957 $1,520 $1,971 28.75% (0.71)%Total gross unrealized losses— (37) — (100.00)% n/mNet unrealized gain (loss) on HTM securities$1,957 $1,483 $1,971 31.96% (0.71)% Loans Held For Investment (1) % Change Q4 Q4 Q3 Q4 20 vs. Q4 20 vs. 2020 2019 2020 Q4 19 Q3 20Real estate - construction and development$1,199,772 $1,120,533 $1,143,202 7.07% 4.95%Commercial real estate - investment related properties2,335,235 2,183,232 2,338,532 6.96% (0.14)%Commercial real estate - owner occupied1,380,516 1,329,144 1,378,443 3.87% 0.15%Real estate - multifamily295,488 243,041 289,270 21.58% 2.15%Real estate - residential 1-4 family1,629,105 1,653,084 1,660,535 (1.45)% (1.89)%Commercial and industrial business2,370,051 1,574,275 2,499,801 50.55% (5.19)%Consumer and other loans418,901 315,979 460,787 32.57% (9.09)%Total$9,629,068 $8,419,288 $9,770,570 14.37% (1.45)%(1) PPP loans totaling $0.86 billion and $1.10 billion, primarily in C&I, are included in Q4 2020 and Q3 2020, respectively. Deposits % Change Q4 Q4 Q3 Q4 20 vs. Q4 20 vs. 2020 2019 2020 Q4 19 Q3 20Noninterest-bearing demand$4,374,566 $2,951,225 $4,464,178 48.23% (2.01)%Interest-bearing: Demand and money market accounts4,819,604 3,586,364 4,642,482 34.39% 3.82%Savings330,091 276,205 312,444 19.51% 5.65%Certificates of deposits2,048,905 2,457,123 2,285,859 (16.61)% (10.37)%Total$11,573,166 $9,270,917 $11,704,963 24.83% (1.13)% TOWNEBANKAverage Balances, Yields and Rate Paid (unaudited)(dollars in thousands) Three Months Ended Three Months Ended Three Months Ended December 31, 2020 September 30, 2020 December 31, 2019 Interest Average Interest Average Interest Average Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate Balance Expense RateAssets: Loans (net of unearned income and deferred costs), excluding nonaccrual loans (1)$9,752,150 $104,799 4.28% $9,752,746 $103,401 4.22% $8,283,388 $100,504 4.81%Taxable investment securities1,250,375 6,878 2.20% 1,206,679 6,726 2.23% 1,331,175 9,179 2.76%Tax-exempt investment securities139,572 520 1.49% 144,999 779 2.15% 118,298 908 3.07%Total securities1,389,947 7,398 2.13% 1,351,678 7,505 2.22% 1,449,473 10,087 2.78%Interest-bearing deposits1,754,365 435 0.10% 2,523,644 632 0.10% 519,737 2,067 1.58%Loans held for sale587,517 3,867 2.63% 634,309 4,587 2.89% 469,725 4,413 3.76%Total earning assets13,483,979 116,499 3.44% 14,262,377 116,125 3.24% 10,722,323 117,071 4.33%Less: allowance for loan losses(121,402) (95,594) (56,766) Total nonearning assets1,359,808 1,320,369 1,305,036 Total assets$14,722,385 $15,487,152 $11,970,593 Liabilities and Equity: Interest-bearing deposits Demand and money market$4,582,588 $2,633 0.23% $4,311,920 $2,663 0.25% $3,533,912 $6,421 0.72%Savings317,561 552 0.69% 304,753 555 0.72% 278,910 638 0.91%Certificates of deposit2,159,573 7,578 1.40% 2,417,772 9,747 1.60% 2,544,845 14,685 2.29%Total interest-bearing deposits7,059,722 10,763 0.61% 7,034,445 12,965 0.73% 6,357,667 21,744 1.36%Borrowings722,291 1,645 0.89% 1,931,120 2,841 0.58% 454,621 1,810 1.56%Subordinated debt, net248,965 2,962 4.76% 248,807 2,962 4.76% 248,361 2,962 4.77%Total interest-bearing liabilities8,030,978 15,370 0.76% 9,214,372 18,768 0.81% 7,060,649 26,516 1.49%Demand deposits4,630,665 4,268,443 3,011,688 Other noninterest-bearing liabilities291,836 257,304 250,327 Total liabilities12,953,479 13,740,119 10,322,664 Shareholders’ equity1,768,906 1,747,033 1,647,929 Total liabilities and equity$14,722,385 $15,487,152 $11,970,593 Net interest income (tax-equivalent basis) $101,129 $97,357 $90,555 Reconcilement of Non-GAAP Financial Measures Tax-equivalent basis adjustment (515) (598) (596) Net interest income (GAAP) $100,614 $96,759 $89,959 Interest rate spread (2)(3) 2.68% 2.43% 2.84%Interest expense as a percent of average earning assets 0.45% 0.52% 0.98%Net interest margin (tax equivalent basis) (3)(4) 2.98% 2.72% 3.35%Total cost of deposits 0.37% 0.46% 0.92% (1) December 31, and September 30, 2020 balances include average PPP balances of $1.04 billion and $1.10 billion, and related interest and fee income of $11.29 million and $9.82 million, respectively. There were no PPP balances at December 31, 2019.(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax equivalent.(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax equivalent.(4) Non-GAAP. TOWNEBANKAverage Balances, Yields and Rate Paid (unaudited)(dollars in thousands) Year Ended December 31, 2020 2019 2018 Interest Average Interest Average Interest Average Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate Balance Expense RateAssets: Loans (net of unearned income and deferred costs), excluding nonaccrual loans (1)$9,420,584 $411,421 4.37% $8,122,210 $405,511 4.99% $7,567,570 $373,057 4.93%Taxable investment securities1,252,926 30,181 2.41% 1,202,107 34,141 2.84% 1,004,080 24,729 2.46%Tax-exempt investment securities140,078 2,997 2.14% 102,731 3,426 3.34% 79,720 2,920 3.66%Total securities1,393,004 33,178 2.38% 1,304,838 37,567 2.88% 1,083,800 27,649 2.55%Interest-bearing deposits689,715 2,603 0.38% 665,903 13,825 2.08% 560,368 10,229 1.83%Mortgage loans held for sale505,502 15,252 3.02% 335,588 13,379 3.99% 293,017 13,124 4.48%Total earning assets12,008,805 462,454 3.85% 10,428,539 470,282 4.51% 9,504,755 424,059 4.46%Less: allowance for loan losses(85,570) (54,476) (48,737) Total nonearning assets2,248,971 1,264,363 1,143,167 Total assets$14,172,206 $11,638,426 $10,599,185 Liabilities and Equity: Interest-bearing deposits Demand and money market$4,070,562 $13,105 0.32% $3,351,135 $26,909 0.80% $2,951,038 $16,458 0.56%Savings297,441 2,254 0.76% 280,894 3,296 1.17% 302,435 3,824 1.26%Certificates of deposit2,378,281 42,502 1.79% 2,478,663 56,050 2.26% 2,060,587 32,859 1.59%Total interest-bearing deposits6,746,284 57,861 0.86% 6,110,692 86,255 1.41% 5,314,060 53,141 1.00%Borrowings1,269,064 10,306 0.80% 609,142 11,368 1.84% 897,574 15,542 1.71%Subordinated debt, net248,736 11,847 4.76% 248,139 11,847 4.77% 251,097 12,067 4.81%Total interest-bearing liabilities8,264,084 80,014 0.97% 6,967,973 109,470 1.57% 6,462,731 80,750 1.25%Demand deposits3,924,797 2,844,178 2,517,173 Other noninterest-bearing liabilities262,266 228,994 164,486 Total liabilities12,451,147 10,041,145 9,144,390 Shareholders' equity1,721,059 1,597,281 1,454,795 Total liabilities and equity$14,172,206 $11,638,426 $10,599,185 Net interest income (tax-equivalent basis) $382,440 $360,812 $343,309 Reconcilement of Non-GAAP Financial Measures Tax-equivalent basis adjustment (2,296) (2,457) (2,236) Net interest income (GAAP) $380,144 $358,355 $341,073 Interest rate spread (2)(4) 2.88% 2.94% 3.21%Interest expense as a percent of average earning assets 0.67% 1.05% 0.85%Net interest margin (tax-equivalent basis) (3)(4) 3.18% 3.46% 3.61%Total cost of deposits 0.54% 0.96% 0.68% (1) December 31, 2020 balances include average PPP balances of $0.74 billion and related interest and fee income of $26.94 million. There were no PPP balances at December 31, 2019 or 2018.(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax equivalent.(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax equivalent.(4) Non-GAAP. TOWNEBANKConsolidated Balance Sheets(dollars in thousands, except per share data) 2020 2019 (unaudited) (audited)ASSETS Cash and due from banks$41,514 $97,593 Interest-bearing deposits at FRB - Richmond1,795,241 322,505 Interest-bearing deposits in financial institutions27,532 22,518 Total Cash and Cash Equivalents1,864,287 442,616 Securities available for sale, at fair value (amortized cost $1,310,250, allowance for credit losses of $348)(1)1,368,224 1,441,308 Securities held to maturity, at amortized cost (fair value $18,469)(1)16,512 43,688 Less: allowance for credit losses(97) — Securities held to maturity, net of allowance for credit losses16,415 43,688 Other equity securities6,492 6,462 FHLB stock30,135 30,094 Total Securities1,421,266 1,521,552 Mortgage loans held for sale540,798 419,233 Loans, net of unearned income and deferred costs9,629,068 8,419,288 Less: allowance for credit losses(120,157) (58,234)Net Loans9,508,911 8,361,054 Premises and equipment, net260,242 231,806 Goodwill452,328 446,816 Other intangible assets, net45,533 54,399 BOLI246,109 243,062 Other assets286,970 227,125 TOTAL ASSETS$14,626,444 $11,947,663 LIABILITIES AND EQUITY Deposits: Noninterest-bearing demand$4,374,566 $2,951,225 Interest-bearing: Demand and money market accounts4,819,604 3,586,364 Savings330,091 276,205 Certificates of deposit2,048,905 2,457,123 Total Deposits11,573,166 9,270,917 Advances from the FHLB456,038 471,687 Subordinated debt, net249,055 248,458 FRB PPP Lending Facility182,852 — Repurchase agreements and other borrowings67,786 52,391 Total Borrowings955,731 772,536 Other liabilities313,719 250,516 TOTAL LIABILITIES12,842,616 10,293,969 Preferred stock Authorized and unissued shares - 2,000,000— — Common stock, $1.667 par: Authorized shares - 150,000,000 Issued and outstanding shares 72,667,541 in 2020 and 72,649,682 in 2019121,132 121,107 Capital surplus1,046,642 1,041,160 Retained earnings557,889 467,186 Common stock issued to deferred compensation trust, at cost 873,486 shares in 2020 and 818,578 shares in 2019(16,969) (15,555)Deferred compensation trust16,969 15,555 Accumulated other comprehensive income (loss)41,184 11,302 TOTAL SHAREHOLDERS’ EQUITY1,766,847 1,640,755 Noncontrolling interest16,981 12,939 TOTAL EQUITY1,783,828 1,653,694 TOTAL LIABILITIES AND EQUITY$14,626,444 $11,947,663 (1) For 2020, disclosures are presented in compliance with ASC 326. TOWNEBANKConsolidated Statements of Income(dollars in thousands, except per share data) Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019 (unaudited) (unaudited) (unaudited) (audited)INTEREST INCOME: Loans, including fees$104,182 $100,059 $409,252 $403,675 Investment securities7,499 9,936 33,052 36,946 Interest-bearing deposits in financial institutions and federal funds sold435 2,067 2,603 13,825 Mortgage loans held for sale3,867 4,413 15,252 13,379 Total interest income115,983 116,475 460,159 467,825 INTEREST EXPENSE: Deposits10,762 21,744 57,862 86,255 Advances from the FHLB1,404 1,730 8,393 11,018 Subordinated debt, net2,962 2,962 11,847 11,847 Repurchase agreements and other borrowings241 80 1,913 350 Total interest expense15,369 26,516 80,015 109,470 Net interest income100,614 89,959 380,144 358,355 PROVISION FOR CREDIT LOSSES1,617 3,601 67,177 9,371 Net interest income after provision for credit losses98,997 86,358 312,967 348,984 NONINTEREST INCOME: Residential mortgage banking income, net37,504 15,884 112,166 66,812 Insurance commissions and other title fees and income, net13,868 15,001 65,840 64,478 Real estate brokerage and property management income, net9,229 6,737 38,249 34,292 Service charges on deposit accounts1,707 2,245 8,021 10,544 Credit card merchant fees, net1,377 1,389 5,170 4,746 BOLI1,990 3,865 8,285 9,215 Other income5,559 4,591 36,826 16,346 Net gain/(loss) on investment securities— — 9,634 (845)Total noninterest income71,234 49,712 284,191 205,588 NONINTEREST EXPENSE: Salaries and employee benefits61,475 56,013 235,676 218,920 Occupancy expense8,193 7,516 31,317 31,381 Furniture and equipment3,462 3,598 13,914 14,351 Amortization - intangibles2,797 3,005 11,498 12,370 Software expense4,066 2,976 14,622 11,717 Data processing2,363 2,510 10,985 11,825 Professional fees2,591 2,990 11,268 12,943 Advertising and marketing2,204 2,839 9,643 12,279 Other expenses18,781 10,889 56,902 52,516 Total noninterest expense105,932 92,336 395,825 378,302 Income before income tax expense and noncontrolling interest64,299 43,734 201,333 176,270 Provision for income tax expense10,408 7,786 31,900 32,596 Net income$53,891 $35,948 $169,433 $143,674 Net income attributable to noncontrolling interest(3,809) (873) (23,898) (4,891)Net income attributable to TowneBank$50,082 $35,075 $145,535 $138,783 Per common share information Basic earnings$0.69 $0.49 $2.01 $1.93 Diluted earnings$0.69 $0.49 $2.01 $1.92 Cash dividends declared$0.18 $0.18 $0.72 $0.70 TOWNEBANKConsolidated Balance Sheets - Five Quarter Trend(dollars in thousands, except per share data) December 31, September 30, June 30, March 31, December 31, 2020 2020 2020 2020 2019 (unaudited) (unaudited) (unaudited) (unaudited) (audited)ASSETS Cash and due from banks$41,514 $114,604 $115,724 $108,929 $97,593 Interest-bearing deposits at FRB - Richmond1,795,241 1,670,186 2,511,152 753,643 322,505 Interest-bearing deposits in financial institutions27,532 24,890 24,374 23,564 22,518 Total Cash and Cash Equivalents1,864,287 1,809,680 2,651,250 886,136 442,616 Securities available for sale, at fair value1,368,224 1,310,683 1,266,624 1,248,420 1,441,308 Securities held to maturity16,512 17,131 41,595 42,431 43,688 Less: allowance for credit losses(97) (90) (121) (133) — Securities held to maturity, net of allowance for credit losses16,415 17,041 41,474 42,298 43,688 Other equity securities6,492 6,497 6,497 6,462 6,462 Federal Home Loan Bank stock30,135 41,829 49,277 52,042 30,094 Total Securities1,421,266 1,376,050 1,363,872 1,349,222 1,521,552 Mortgage loans held for sale540,798 669,020 610,369 453,143 419,233 Loans, net of unearned income and deferred costs9,629,068 9,770,570 9,801,889 8,784,195 8,419,288 Less: allowance for credit losses(120,157) (119,058) (90,467) (64,372) (58,234)Net Loans9,508,911 9,651,512 9,711,422 8,719,823 8,361,054 Premises and equipment, net260,242 256,909 257,533 236,735 231,806 Goodwill452,328 446,725 446,725 446,725 446,816 Other intangible assets, net45,533 45,781 48,632 51,448 54,399 BOLI246,109 244,103 242,493 240,924 243,062 Other assets286,970 295,637 247,962 239,670 227,125 TOTAL ASSETS$14,626,444 $14,795,417 $15,580,258 $12,623,826 $11,947,663 LIABILITIES AND EQUITY Deposits: Noninterest-bearing demand$4,374,566 $4,464,178 $4,226,208 $3,060,515 $2,951,225 Interest-bearing: Demand and money market accounts4,819,604 4,642,482 4,223,391 3,573,926 3,586,364 Savings330,091 312,444 298,673 280,807 276,205 Certificates of deposit2,048,905 2,285,859 2,516,666 2,392,744 2,457,123 Total Deposits11,573,166 11,704,963 11,264,938 9,307,992 9,270,917 Advances from the FHLB456,038 731,202 906,365 971,527 471,687 Subordinated debt, net249,055 248,906 248,756 248,607 248,458 FRB PPP Lending Facility182,852 — 1,111,429 — — Repurchase agreements and other borrowings67,786 58,061 60,913 171,762 52,391 Total Borrowings955,731 1,038,169 2,327,463 1,391,896 772,536 Other liabilities313,719 303,582 266,314 258,306 250,516 TOTAL LIABILITIES12,842,616 13,046,714 13,858,715 10,958,194 10,293,969 Preferred stock Authorized shares - 2,000,000— — — — — Common stock, $1.667 par value121,132 121,115 121,101 121,057 121,107 Capital surplus1,046,642 1,045,170 1,043,774 1,041,870 1,041,160 Retained earnings557,889 520,888 499,502 477,972 467,186 Common stock issued to deferred compensation trust, at cost(16,969) (16,951) (16,776) (15,562) (15,555)Deferred compensation trust16,969 16,951 16,776 15,562 15,555 Accumulated other comprehensive income (loss)41,184 44,569 43,218 12,301 11,302 TOTAL SHAREHOLDERS’ EQUITY1,766,847 1,731,742 1,707,595 1,653,200 1,640,755 Noncontrolling interest16,981 16,961 13,948 12,432 12,939 TOTAL EQUITY1,783,828 1,748,703 1,721,543 1,665,632 1,653,694 TOTAL LIABILITIES AND EQUITY$14,626,444 $14,795,417 $15,580,258 $12,623,826 $11,947,663 TOWNEBANKConsolidated Statements of Income - Five Quarter Trend (unaudited)(dollars in thousands, except per share data) Three Months Ended December 31, September 30, June 30, March 31, December 31, 2020 2020 2020 2020 2019INTEREST INCOME: Loans, including fees$104,182 $102,869 $102,139 $100,062 $100,059 Investment securities7,499 7,440 8,163 9,949 9,936 Interest-bearing deposits in financial institutions and federal funds sold435 632 433 1,102 2,067 Mortgage loans held for sale3,867 4,587 3,811 2,988 4,413 Total interest income115,983 115,528 114,546 114,101 116,475 INTEREST EXPENSE: Deposits10,762 12,966 15,072 19,062 21,744 Advances from the FHLB1,404 1,901 2,595 2,492 1,730 Subordinated debt2,962 2,962 2,962 2,962 2,962 Repurchase agreements and other borrowings241 940 643 89 80 Total interest expense15,369 18,769 21,272 24,605 26,516 Net interest income100,614 96,759 93,274 89,496 89,959 PROVISION FOR CREDIT LOSSES1,617 31,598 26,945 7,016 3,601 Net interest income after provision for credit losses98,997 65,161 66,329 82,480 86,358 NONINTEREST INCOME: Residential mortgage banking income, net37,504 37,531 29,715 7,416 15,884 Insurance commissions and other title fees and income, net13,868 17,468 17,612 16,893 15,001 Real estate brokerage and property management income, net9,229 11,301 10,781 6,938 6,737 Service charges on deposit accounts1,707 1,986 1,888 2,440 2,245 Credit card merchant fees, net1,377 1,506 1,109 1,179 1,389 BOLI1,990 1,605 1,584 3,105 3,865 Other income5,559 22,278 3,763 5,227 4,591 Net gain/(loss) on investment securities— 1,701 2,930 5,002 — Total noninterest income71,234 95,376 69,382 48,200 49,712 NONINTEREST EXPENSE: Salaries and employee benefits61,475 61,408 56,926 55,867 56,013 Occupancy expense8,193 8,396 7,227 7,502 7,516 Furniture and equipment3,462 3,247 3,564 3,640 3,598 Amortization - intangibles2,797 2,851 2,901 2,950 3,005 Software expense4,066 3,572 3,492 3,492 2,976 Data processing2,363 3,113 2,718 2,791 2,510 Professional fees2,591 2,637 2,972 3,067 2,990 Advertising and marketing2,204 1,870 1,986 3,584 2,839 Other expenses18,781 14,887 9,239 13,995 10,889 Total noninterest expense105,932 101,981 91,025 96,888 92,336 Income before income tax expense and noncontrolling interest64,299 58,556 44,686 33,792 43,734 Provision for income tax expense10,408 7,841 7,464 6,187 7,786 Net income53,891 50,715 37,222 27,605 35,948 Net income attributable to noncontrolling interest(3,809) (16,251) (2,617) (1,221) (873)Net income attributable to TowneBank$50,082 $34,464 $34,605 $26,384 $35,075 Per common share information Basic earnings$0.69 $0.48 $0.48 $0.37 $0.49 Diluted earnings (1)$0.69 $0.48 $0.48 $0.36 $0.49 Basic weighted average shares outstanding72,357,177 72,307,961 72,280,555 72,206,228 72,122,476 Diluted weighted average shares outstanding72,455,096 72,344,284 72,317,988 72,299,721 72,302,414 Cash dividends declared$0.18 $0.18 $0.18 $0.18 $0.18 (1) The quarterly diluted EPS do not sum to the total year diluted EPS due to rounding. TOWNEBANKBanking Segment Financial Information(dollars in thousands) Three Months Ended Year Ended Increase/(Decrease) December 31, September 30, December 31, 2020 over 2019 2020 2019 2020 2020 2019 Amount Percent Revenue Net interest income$97,412 $87,637 $92,869 $367,353 $351,969 $15,384 4.37%Noninterest income Service charges on deposit accounts1,707 2,245 1,986 8,021 10,544 (2,523) (23.93)%Credit card merchant fees1,377 1,389 1,506 5,169 4,746 423 8.91%Other income5,983 5,271 4,876 21,809 19,620 2,189 11.16%Subtotal9,067 8,905 8,368 34,999 34,910 89 0.25%Gain (loss) on investment securities— — 1,701 9,634 (845) 10,479 n/mTotal noninterest income9,067 8,905 10,069 44,633 34,065 10,568 31.02%Total revenue106,479 96,542 102,938 411,986 386,034 25,952 6.72% Provision for credit losses1,628 3,601 31,070 65,799 9,371 56,428 602.16% Expenses Salaries and employee benefits37,358 34,183 36,535 142,328 131,149 11,179 8.52%Occupancy expense5,681 4,959 5,829 21,237 20,419 818 4.01%Furniture and equipment2,625 2,577 2,424 10,425 10,240 185 1.81%Amortization of intangible assets1,013 1,214 1,063 4,354 5,160 (806) (15.62)%Other expenses19,892 14,078 15,793 65,107 66,295 (1,188) (1.79)%Total expenses66,569 57,011 61,644 243,451 233,263 10,188 4.37%Income before income tax, corporate allocation and noncontrolling interest38,282 35,930 10,224 102,736 143,400 (40,664) (28.36)%Corporate allocation643 627 595 2,534 2,011 523 26.01%Income before income tax provision and noncontrolling interest38,925 36,557 10,819 105,270 145,411 (40,141) (27.61)%Provision for income tax expense5,163 6,368 474 14,467 25,706 (11,239) (43.72)%Net income33,762 30,189 10,345 90,803 119,705 (28,902) (24.14)%Noncontrolling interest4 (1) (2) 6 2 4 n/mNet income attributable to TowneBank$33,766 $30,188 $10,343 $90,809 $119,707 $(28,898) (24.14)% Efficiency ratio (non-GAAP)61.57% 57.80% 59.84% 59.42% 58.96% TOWNEBANKRealty Segment Financial Information(dollars in thousands) Three Months Ended Year Ended Increase/(Decrease) December 31, September 30, December 31, 2020 over 2019 2020 2019 2020 2020 2019 Amount PercentRevenue Residential mortgage brokerage income, net$38,040 $16,617 $38,074 $114,589 $68,443 $46,146 67.42%Real estate brokerage income, net3,564 2,550 3,688 11,776 9,865 1,911 19.37%Title insurance and settlement fees669 531 654 2,397 2,111 286 13.55%Property management fees, net5,665 4,187 7,613 26,473 24,427 2,046 8.38%Income from unconsolidated subsidiary398 75 451 1,336 516 820 158.91%Net interest and other income3,627 2,787 4,101 13,889 7,724 6,165 79.82%Total revenue51,963 26,747 54,581 170,460 113,086 57,374 50.73% Provision for (recovery of) credit losses(11) — 528 1,378 — $1,378 n/m Expenses Salaries and employee benefits$16,168 $12,941 $15,744 $58,263 $52,619 $5,644 10.73%Occupancy expense1,869 1,857 1,906 7,465 8,285 (820) (9.90)%Furniture and equipment614 773 620 2,622 3,099 (477) (15.39)%Amortization of intangible assets658 655 658 2,630 2,741 (111) (4.05)%Other expenses8,779 7,030 9,226 33,143 27,982 5,161 18.44%Total expenses28,088 23,256 28,154 104,123 94,726 9,397 9.92% Income (loss) before income tax, corporate allocation, and noncontrolling interest23,886 3,491 25,899 64,959 18,360 46,599 253.81%Corporate allocation(403) (362) (356) (1,522) (1,163) (359) 30.87%Income (loss) before income tax provision and noncontrolling interest23,483 3,129 25,543 63,437 17,197 46,240 268.88%Provision for income tax4,421 416 4,780 12,035 3,707 8,328 224.66%Net income (loss)19,062 2,713 20,763 51,402 13,490 37,912 281.04%Noncontrolling interest(3,813) (715) (4,790) (11,809) (3,711) (8,098) 218.22%Net income (loss) attributable to TowneBank$15,249 $1,998 $15,973 $39,593 $9,779 $29,814 304.88% Efficiency ratio (non-GAAP)52.79% 84.50% 50.38% 59.54% 81.34% TOWNEBANKInsurance Segment Financial Information(dollars in thousands) Three Months Ended Year Ended Increase/(Decrease) December 31, September 30, December 31, 2020 over 2019 2020 2019 2020 2020 2019 Amount PercentCommission and fee income Property and casualty$11,942 $11,957 $14,072 $52,726 $50,380 $2,346 4.66%Employee benefits3,725 3,758 3,825 15,259 14,726 533 3.62%Travel insurance (1)— 794 1,399 3,526 4,085 (559) (13.68)%Specialized benefit services175 173 165 664 672 (8) (1.19)%Total commissions and fees15,842 16,682 19,461 72,175 69,863 2,312 3.31%Contingency and bonus revenue1,087 1,396 1,112 6,230 6,307 (77) (1.22)%Other income (1)69 1,805 17,697 17,976 2,032 15,944 784.65%Total revenue16,998 19,883 38,270 96,381 78,202 18,179 23.25%Employee commission expense3,592 3,501 3,654 14,492 13,379 1,113 8.32%Revenue, net of commission expense13,406 16,382 34,616 81,889 64,823 17,066 26.33% Expenses Salaries and employee benefits$7,949 $8,889 $9,129 $35,085 $35,152 $(67) (0.19)%Occupancy expense643 700 661 2,615 2,677 (62) (2.32)%Furniture and equipment223 248 203 867 1,012 (145) (14.33)%Amortization of intangible assets1,126 1,136 1,130 4,514 4,469 45 1.01%Other expenses1,334 1,096 1,060 5,170 7,003 (1,833) (26.17)%Total operating expenses11,275 12,069 12,183 48,251 50,313 (2,062) (4.10)%Income before income tax and noncontrolling interest2,131 4,313 22,433 33,638 14,510 19,128 131.83%Corporate allocation(240) (265) (239) (1,012) (848) (164) 19.34%Income before income tax provision and noncontrolling interest1,891 4,048 22,194 32,626 13,662 18,964 138.81%Provision for income tax expense824 1,002 2,587 5,398 3,183 2,215 69.59%Net income1,067 3,046 19,607 27,228 10,479 16,749 159.83%Noncontrolling interest (1)— (157) (11,459) (12,095) (1,182) (10,913) 923.27%Net income attributable to TowneBank$1,067 $2,889 $8,148 $15,133 $9,297 $5,836 62.77% Provision for income taxes824 1,002 2,587 5,398 3,183 2,215 69.59%Depreciation, amortization and interest expense1,274 1,333 1,285 5,151 5,312 (161) (3.03)%EBITDA (non-GAAP)$3,165 $5,224 $12,020 $25,682 $17,792 $7,890 44.35% Efficiency ratio (non-GAAP)75.70% 66.74% 65.06% 68.06% 70.72% (1) In third quarter 2020 we sold Red Sky Insurance, our travel insurance joint venture. We recorded a gross gain on sale in other income of $17,626. Our re-tax net gain, after distributions to noncontrolling interest was $6,521. TOWNEBANKReconciliation of Non-GAAP Financial Measures: Three Months Ended Twelve Months Ended December 31, September 30, December 31, December 31, 2020 2020 2019 2020 2019 Return on average assets (GAAP)1.35% 0.89% 1.16% 1.03% 1.19%Impact of excluding average goodwill and other intangibles and amortization0.11% 0.08% 0.14% 0.10% 0.15%Return on average tangible assets (non-GAAP)1.46% 0.97% 1.30% 1.13% 1.33% Return on average equity (GAAP)11.26% 7.85% 8.44% 8.46% 8.69%Impact of excluding average goodwill and other intangibles and amortization5.02% 3.81% 4.53% 4.16% 4.89%Return on average tangible equity (non-GAAP)16.28% 11.66% 12.97% 12.62% 13.58% Return on average common equity (GAAP)11.36% 7.91% 8.51% 8.52% 8.75%Impact of excluding average goodwill and other intangibles and amortization5.12% 3.88% 4.61% 4.24% 4.98%Return on average tangible common equity (non-GAAP)16.48% 11.79% 13.12% 12.76% 13.73% Book value (GAAP)$24.31 $23.83 $22.58 $24.31 $22.58 Impact of excluding average goodwill and other intangibles and amortization(6.85) (6.77) (6.89) (6.85) (6.89)Tangible book value (non-GAAP)$17.46 $17.06 $15.69 $17.46 15.69 Efficiency ratio (GAAP)61.64% 53.08% 66.11% 59.58% 67.08%Impact of excluding g/l on investments and amortization expense(1.62)% 4.28% (2.15)% (0.88)% (2.29)%Efficiency ratio (non-GAAP)60.02% 57.36% 63.96% 58.70% 64.79% Average assets (GAAP)$14,722,385 $15,487,152 $11,970,593 $14,172,206 $11,638,426 Less: average goodwill and intangible assets491,453 494,238 502,767 495,707 503,108 Average tangible assets (non-GAAP)$14,230,932 $14,992,914 $11,467,826 $13,676,499 $11,135,318 Average equity (GAAP)$1,768,906 $1,747,033 $1,647,929 $1,721,059 $1,597,281 Less: average goodwill and intangible assets491,453 494,238 502,767 495,707 503,108 Average tangible equity (non-GAAP)$1,277,453 $1,252,795 $1,145,162 $1,225,352 $1,094,173 Average common equity (GAAP)$1,753,596 $1,732,881 $1,635,394 $1,707,635 $1,585,238 Less: average goodwill and intangible assets491,453 494,238 502,767 495,707 503,108 Average tangible common equity (non-GAAP)$1,262,143 $1,238,643 $1,132,627 $1,211,928 $1,082,130 Net income (GAAP)$50,082 $34,464 $35,075 $145,535 $138,783 Amortization of intangibles, net of tax2,210 2,252 2,374 9,086 9,772 Tangible net income (non-GAAP)$52,292 $36,716 $37,449 $154,621 $148,555 Net income (GAAP)$50,082 $34,464 $35,075 $145,535 $138,783 Provision for credit losses1,617 31,598 3,601 67,177 9,371 Provision for income taxes10,408 7,841 7,786 31,900 32,596 Pre-provision, pre-tax net revenues (non-GAAP)$62,107 $73,903 $46,462 $244,612 $180,750 Total revenue (GAAP)$171,848 $192,135 $139,671 $664,335 $563,943 Net (gain) loss on equity investment— (17,625) — — — Net (gain)/loss on investment securities— (1,701) — (9,634) 845 Total revenue for efficiency calculation (non-GAAP)$171,848 $172,809 $139,671 $654,701 $564,788 Noninterest expense (GAAP)$105,932 $101,981 $92,336 $395,825 $378,302 Less: Amortization of intangibles2,797 2,851 3,005 11,498 12,370 Noninterest expense net of amortization (non-GAAP)$103,135 $99,130 $89,331 $384,327 $365,932