SUFFOLK, Va., Oct. 23, 2024 (GLOBE NEWSWIRE) -- TowneBank (the "Company" or "Towne") (NASDAQ:TOWN) today reported earnings for the quarter ended September 30, 2024 of $42.95 million, or $0.57 per diluted share, compared to $44.86 million, or $0.60 per diluted share, for the quarter ended September 30, 2023. Excluding certain items affecting comparability, core earnings (non-GAAP) were $43.39 million, or $0.58 per diluted share, in the current quarter compared to $44.88 million, or $0.60 per diluted share, for the quarter ended September 30, 2023.

"Our third quarter results continued to deliver increased net interest income and noninterest income contributions from our diverse business model which were in line with expectations. We remain committed to prudent balance sheet management strategies. We were also excited to announce our partnership with Village Bank which will meaningfully enhance our Richmond presence, which is core to our franchise future growth. Lastly, the recently released FDIC Deposit Market Share Report for 2024 continues to demonstrate the strength of our Main Street banking model and core deposit franchise, resulting in the #1 market share, or 30%, in our legacy Virginia Beach-Norfolk-Newport News, VA-NC MSA," said G. Robert Aston, Jr., Executive Chairman.

Highlights for Third Quarter 2024:

Total revenues were $174.52 million, an increase of $1.65 million, or 0.96%, compared to third quarter 2023. Noninterest income increased $2.43 million, driven by growth in residential mortgage banking income and insurance commissions. Partially offsetting the increase in noninterest income was a $0.78 million decline in net interest income.
Total deposits were $14.36 billion, an increase of $482.37 million, or 3.48%, compared to third quarter 2023. Total deposits increased 0.63%, or $90.58 million, in comparison to June 30, 2024, 2.52% on an annualized basis.
Noninterest-bearing deposits decreased 3.99%, to $4.27 billion, compared to third quarter 2023 and represented 29.71% of total deposits. Compared to the linked quarter, noninterest-bearing deposits decreased 0.84%.
Loans held for investment were $11.41 billion, an increase of $239.55 million, or 2.14%, compared to September 30, 2023, but a decrease of $39.23 million, or 0.34%, compared to June 30, 2024.
Annualized return on common shareholders' equity was 8.18% compared to 9.04% in third quarter 2023. Annualized return on average tangible common shareholders' equity (non-GAAP) was 11.54% compared to 13.11% in third quarter 2023.
Net interest margin was 2.90% for the quarter and tax-equivalent net interest margin (non-GAAP) was 2.93%, including purchase accounting accretion of 3 basis points, compared to the prior year quarter net interest margin of 2.95% and tax-equivalent net interest margin (non-GAAP) of 2.98%, including purchase accounting accretion of 5 basis points.
Compared to the linked quarter, net interest margin increased 4 bp and spread increased 6 bp.
The effective tax rate was 11.52% in the quarter compared to 17.34% in third quarter 2023 and 15.93% in the linked quarter. The lower effective tax rate in the current quarter was primarily due to the impact on state and federal taxes from the increase in credits and losses related to LIHTC investment properties placed in service during the period.

"Growth has certainly been challenging in the current environment but we believe our balance sheet is well positioned to support mid-single digit growth rates as we look ahead to next year. We plan to aggressively expand Towne Insurance and evaluate other opportunities to enhance our fee-based lines of business to further drive our differentiated business model," stated William I. Foster III, President and Chief Executive Officer.

Quarterly Net Interest Income:

Net interest income was $112.28 million compared to $113.06 million for the quarter ended September 30, 2023. The decrease was driven by increased deposit costs, which were mostly offset by higher yields on earning assets.
On an average basis, loans held for investment, with a yield of 5.46%, represented 74.16% of earning assets at September 30, 2024 compared to a yield of 5.13% and 73.45% of earning assets in the third quarter of 2023.
The cost of interest-bearing deposits was 3.28% for the quarter ended September 30, 2024, compared to 2.77% in second quarter 2023. Interest expense on deposits increased $17.96 million, or 27.98%, over the prior year quarter driven by the increase in rate and growth in interest-bearing deposits.
Our total cost of deposits increased to 2.29% from 1.84% for the quarter ended September 30, 2023 due to a combination of higher interest-bearing deposit balances coupled with higher rates. The Federal Reserve Open Market Committee lowered the overnight funds rate late in the third quarter. Management is expecting the decrease to have favorable impact on deposit costs in the fourth quarter of 2024.
Average interest-earning assets totaled $15.40 billion at September 30, 2024 compared to $15.21 billion at September 30, 2023, an increase of 1.26%. The Company anticipates approximately $604 million of cash flows from its securities portfolio to be available for reinvestment in the next twenty-four months.
Average interest-bearing liabilities totaled $10.25 billion, an increase of $493.95 million, or 5.06%, from prior year, driven by deposit growth. Borrowings have declined between periods. There were no short term FHLB borrowings in the third quarter of 2024, compared to an average of $248.91 million in the prior year quarter.

Quarterly Provision for Credit Losses:

The quarterly provision for credit losses was a benefit of $1.10 million compared to an expense of $1.01 million in the prior year quarter and a benefit of $177 thousand in the linked quarter.
The allowance for credit losses on loans decreased $2.36 million in third quarter 2024, compared to the linked quarter. The decrease in the allowance was driven by a modest decline in the loan portfolio, primarily in higher-risk real estate construction and development loans, combined with continued strength in credit quality, and improvements in macroeconomic forecast scenarios utilized in our model.
Net loan charge-offs were $0.68 million in the quarter compared to net recoveries of $1.07 million in the prior year quarter and $19 thousand in the linked quarter. Year-to-date 2024, net loan charge-offs were $1.18 million compared to net loan charge-offs of $2.81 million in first nine months of 2023.
The ratio of net charge-offs to average loans on an annualized basis was 0.02% in third quarter 2024, compared to (0.04)% in third quarter 2023 and 0.00% in the linked quarter.
The allowance for credit losses on loans represented 1.08% of total loans at September 30, 2024, compared to 1.12% at September 30, 2023, and 1.10% at June 30, 2024. The allowance for credit losses on loans was 18.70 times nonperforming loans compared to 17.60 times at September 30, 2023 and 19.08 times at June 30, 2024.

Quarterly Noninterest Income:

Total noninterest income was $62.24 million compared to $59.81 million in 2023, an increase of $2.43 million, or 4.06%.
Residential mortgage banking income was $11.79 million compared to $10.65 million in third quarter 2023. Loan volume increased to $598.18 million in third quarter 2024 from $520.41 million in third quarter 2023. Both, the number of loans originated and the per-loan average balance increased in third quarter 2024 compared to third quarter 2023. Refinance activities increased in the quarter after more than a year of low activity. Residential purchase activity was 91.49% of production volume in the third quarter of 2024 compared to 95.96% in third quarter 2023. Management expects mortgage production volumes to be positively impacted by any additional reductions in the Federal Reserve overnight rate.
While level with the linked quarter at 3.28%, gross margins on residential mortgage sales increased 11 basis points from 3.17% in third quarter 2023.
Total net insurance commissions increased $1.95 million, or 8.20%, to $25.73 million in third quarter 2024 compared to 2023. This increase was primarily attributable to increases in property and casualty commissions, which were driven by organic growth.
Property management fee revenue decreased 12.34%, or $1.58 million, to $11.22 million in third quarter 2024 compared to 2023. Reservation levels declined compared to the prior year.

Quarterly Noninterest Expense:

Total noninterest expense was $126.90 million compared to $117.70 million in 2023, an increase of $9.20 million, or 7.81%. This increase was primarily attributable to growth in salaries and employee benefits of $4.87 million, professional fees of $1.95 million, software of $0.66 million, data processing of $0.56 million, and advertising and marketing of $0.51 million.
Salaries and benefits expense increases were driven by an increase in banking personnel and production incentives.
Investment in technology related to banking services and information monitoring continued to drive both direct and indirect costs. Professional fees increased due to consulting and outside services. Software costs increased due to higher core system costs, while data processing increased due to higher processing costs and merchant fee increases.
Advertising and marketing increased, driven by business development.

Consolidated Balance Sheet Highlights:

Management is focused on strategic balance sheet management with a concentration on controlled loan growth and maintaining strong levels of liquidity.
Total assets were $17.19 billion for the quarter ended September 30, 2024, a $119.18 million increase compared to $17.07 billion at June 30, 2024. Total assets increased $507.66 million, or 3.04%, from $16.68 billion at September 30, 2023.
Loans held for investment declined $39.23 million, or 0.34%, compared to the linked quarter but increased $239.55 million, or 2.14%, compared to prior year. There were declines in several loan categories from the linked quarter, with the most significant decline in the real estate construction and development category. The Company continued to maintain strong credit discipline throughout the period.
Mortgage loans held for sale increased $76.27 million, or 40.56%, compared to prior year and $63.56 million, or 31.66%, compared to the linked quarter, driven by the increase in production.
Total deposits increased $482.37 million, or 3.48%, primarily in interest-bearing demand and time deposits, compared to prior year. In the linked quarter comparison, total deposits increased $90.58 million, or 2.52% on an annualized basis.
Noninterest-bearing deposits decreased $177.23 million, or 3.99%, compared to prior year and $36.15 million, or 0.84%, compared to the linked quarter, primarily in commercial and escrow accounts.
Total borrowings decreased $116.22 million, or 28.55%, compared to third quarter 2023 and $4.35 million, or 1.47%, compared to the linked quarter. Short-term FHLB advances were zero at each of September 30, 2024, and the linked quarter end, compared to $100 million at September 30, 2023.

Investment Securities:

Total investment securities were $2.60 billion compared to $2.49 billion at June 30, 2024 and $2.54 billion at September 30, 2023. The weighted average duration of the portfolio at September 30, 2024 was 3.1 years. The carrying value of the available-for-sale debt securities portfolio included net unrealized losses of $110.62 million at September 30, 2024, compared to $172.93 million at June 30, 2024 and $238.52 million at September 30, 2023, with the changes in fair value due to the change in interest rates.

Loans and Asset Quality:

Total loans held for investment were $11.41 billion at September 30, 2024, $11.45 billion June 30, 2024, and $11.17 billion at September 30, 2023.
Nonperforming assets were $7.47 million, or 0.04% of total assets, compared to $7.88 million, or 0.05%, at September 30, 2023, and $7.16 million, or 0.04%, in the linked quarter end.
Nonperforming loans were 0.06% of period end loans at September 30, 2024, September 30, 2023, and the linked quarter end.
Foreclosed property consisted of $884 thousand in repossessed autos at September 30, 2024, compared to $276 thousand in other real estate owned and $490 thousand in repossessed autos, for a total of $766 thousand in foreclosed property at September 30, 2023.

Deposits and Borrowings:

Total deposits were $14.36 billion compared to $14.27 billion at June 30, 2024 and $13.88 billion at September 30, 2023.
The ratio of period end loans held for investment to deposits was 79.46% compared to 80.24% at June 30, 2024 and 80.49% at September 30, 2023.
Noninterest-bearing deposits were 29.71% of total deposits at September 30, 2024 compared to 30.15% at June 30, 2024 and 32.02% at September 30, 2023. Noninterest-bearing deposits declined $177.23 million, or 3.99%, compared to September 30, 2023, and $36.15 million, or 0.84%, compared to the linked quarter.
Total borrowings were $290.82 million compared to $295.17 million at June 30, 2024 and $407.03 million at September 30, 2023.

Capital:

Common equity tier 1 capital ratio of 12.63%⁽¹⁾.
Tier 1 leverage capital ratio of 10.38%⁽¹⁾.
Tier 1 risk-based capital ratio of 12.75%⁽¹⁾.
Total risk-based capital ratio of 15.53%⁽¹⁾.
Book value per common share was $28.59 compared to $27.62 at June 30, 2024 and $26.28 at September 30, 2023.
Tangible book value per common share (non-GAAP) was $21.65 compared to $20.65 at June 30, 2024 and $19.28 at September 30, 2023.

⁽¹⁾ Preliminary.

About TowneBank:

Founded in 1999, TowneBank is a company built on relationships, offering a full range of banking and other financial services, with a focus 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.

Now celebrating 25 years, TowneBank operates 50 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. TowneBank has grown its capabilities beyond banking to provide expertise through its affiliated companies that include Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices RW Towne Realty, Towne 1031 Exchange, LLC, and Towne Vacations. With total assets of $17.19 billion as of September 30, 2024, TowneBank is one of the largest banks headquartered in Virginia.

Non-GAAP Financial Measures:

This press release contains certain financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Such non-GAAP financial measures include the following: fully tax-equivalent net interest margin, core operating earnings, core net income, tangible book value per common share, total risk-based capital ratio, tier one leverage ratio, tier one capital ratio, and the tangible common equity to tangible assets ratio. Management uses these non-GAAP financial measures to assess the performance of TowneBank's core business and the strength of its capital position. Management believes that these non-GAAP financial measures provide meaningful additional information about TowneBank to assist investors in evaluating operating results, financial strength, and capitalization. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant charges for credit costs and other factors. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The computations of the non-GAAP financial measures used in this presentation are referenced in a footnote or in the appendix to this presentation.

Forward-Looking Statements:

This press release contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only the beliefs, expectations, or opinions of TowneBank and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward-looking statements may be identified by the use of such words as: "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional terms, such as "will," "would," "should," "could," "may," "likely," "probably," or "possibly." These statements may address issues that involve significant risks, uncertainties, estimates, and assumptions made by management. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include among others, competitive pressures in the banking industry that may increase significantly; changes in the interest rate environment that may reduce margins and/or the volumes and values of loans made or held as well as the value of other financial assets held; an unforeseen outflow of cash or deposits or an inability to access the capital markets, which could jeopardize our overall liquidity or capitalization; changes in the creditworthiness of customers and the possible impairment of the collectability of loans; insufficiency of our allowance for credit losses due to market conditions, inflation, changing interest rates or other factors; adverse developments in the financial industry generally, such as the recent bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer and client behavior; general economic conditions, either nationally or regionally, that may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit or other services; geopolitical instability, including wars, conflicts, civil unrest, and terrorist attacks and the potential impact, directly or indirectly, on our business; the effects of weather-related or natural disasters, which may negatively affect our operations and/or our loan portfolio and increase our cost of conducting business; public health events (such as the COVID-19 pandemic) and governmental and societal responses to them; changes in the legislative or regulatory environment, including changes in accounting standards and tax laws, that may adversely affect our business; our ability to close the transaction with Village Bank when expected or at all because required approvals and other conditions to closing are not received or satisfied on the proposed terms or on the anticipated schedule; our integration of Village Bank's business to the extent that it may take longer or be more difficult, time-consuming or costly to accomplish than expected; deposit attrition, operating costs, customer losses and business disruption following the Village Bank transaction, including adverse effects on relationships with employees and customers; costs or difficulties related to the integration of the businesses we have acquired may be greater than expected; expected growth opportunities or cost savings associated with pending or recently completed acquisitions may not be fully realized or realized within the expected time frame; cybersecurity threats or attacks, whether directed at us or at vendors or other third parties with which we interact, the implementation of new technologies, and the ability to develop and maintain reliable electronic systems; our competitors may have greater financial resources and develop products that enable them to compete more successfully; changes in business conditions; changes in the securities market; and changes in our local economy with regard to our market area. Any forward-looking statements made by us or on our behalf speak only as of the date they are made or as of the date indicated, and we do not undertake any obligation to update forward-looking statements as a result of new information, future events, or otherwise. For additional information on factors that could materially influence forward-looking statements included in this report, see the "Risk Factors" in TowneBank's Annual Report on Form 10-K for the year ended December 31, 2023, and related disclosures in other filings that have been, or will be, filed by TowneBank with the Federal Deposit Insurance Corporation.

Media contact:

G. Robert Aston, Jr., Executive Chairman, 757-638-6780

William I. Foster III, President and Chief Executive Officer, 757-417-6482

Investor contact:

William B. Littreal, Chief Financial Officer, 757-638-6813


TOWNEBANK
Selected Financial Highlights (unaudited)
(dollars in thousands, except per share data)

		Three Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,
			2024			2024			2024			2023			2023
Income and Performance Ratios:
	Total revenue	$	174,518		$	174,970		$	167,102		$	155,546		$	172,864
	Net income		43,126			43,039			35,127			28,545			44,745
	Net income available to common shareholders		42,949			42,856			34,687			28,804			44,862
	Net income per common share - diluted		0.57			0.57			0.46			0.39			0.60
	Book value per common share		28.59			27.62			27.33			27.24			26.28
	Book value per common share - tangible ^(non-GAAP)		21.65			20.65			20.31			20.28			19.28
	Return on average assets		1.00	%		1.01	%		0.83	%		0.68	%		1.06	%
	Return on average assets - tangible ^(non-GAAP)		1.09	%		1.11	%		0.92	%		0.77	%		1.17	%
	Return on average equity		8.12	%		8.43	%		6.84	%		5.75	%		8.96	%
	Return on average equity - tangible ^(non-GAAP)		11.42	%		12.03	%		9.87	%		8.53	%		12.97	%
	Return on average common equity		8.18	%		8.49	%		6.89	%		5.79	%		9.04	%
	Return on average common equity - tangible ^(non-GAAP)		11.54	%		12.16	%		9.98	%		8.62	%		13.11	%
	Noninterest income as a percentage of total revenue		35.66	%		37.68	%		38.23	%		30.74	%		34.60	%
Regulatory Capital Ratios (1):
	Common equity tier 1		12.63	%		12.43	%		12.20	%		12.18	%		12.19	%
	Tier 1		12.75	%		12.55	%		12.32	%		12.29	%		12.31	%
	Total		15.53	%		15.34	%		15.10	%		15.06	%		15.09	%
	Tier 1 leverage ratio		10.38	%		10.25	%		10.15	%		10.17	%		10.06	%
Asset Quality:
	Allowance for credit losses on loans to nonperforming loans	18.70x			19.08x			18.01x			18.48x			17.60x
	Allowance for credit losses on loans to period end loans		1.08	%		1.10	%		1.10	%		1.12	%		1.12	%
	Nonperforming loans to period end loans		0.06	%		0.06	%		0.06	%		0.06	%		0.06	%
	Nonperforming assets to period end assets		0.04	%		0.04	%		0.05	%		0.05	%		0.05	%
	Net charge-offs (recoveries) to average loans (annualized)		0.02	%		—	%		0.02	%		—	%	(0.04		)%
	Net charge-offs (recoveries)	$	677		$	(19	)	$	520		$	68		$	(1,074	)

	Nonperforming loans	$	6,588		$	6,582		$	6,987		$	6,843		$	7,110
	Foreclosed property		884			581			780			908			766
	Total nonperforming assets	$	7,472		$	7,163		$	7,767		$	7,751		$	7,876
	Loans past due 90 days and still accruing interest	$	510		$	368		$	323		$	735		$	970
	Allowance for credit losses on loans	$	123,191		$	125,552		$	125,835		$	126,461		$	125,159
Mortgage Banking:
	Loans originated, mortgage	$	421,571		$	430,398		$	289,191		$	302,616		$	348,387
	Loans originated, joint venture		176,612			196,583			135,197			126,332			172,021
	Total loans originated	$	598,182		$	626,981		$	424,388		$	428,948		$	520,408
	Number of loans originated		1,637			1,700			1,247			1,237			1,487
	Number of originators		159			169			176			181			192
	Purchase %		91.49	%		94.85	%		95.66	%		95.06	%		95.96	%
	Loans sold	$	526,998		$	605,134		$	410,895		$	468,014		$	567,291
	Rate lock asset	$	1,548		$	1,930		$	1,681		$	895		$	1,348
	Gross realized gain on sales and fees as a % of loans originated		3.28	%		3.28	%		3.34	%		3.06	%		3.17	%
Other Ratios:
	Net interest margin		2.90	%		2.86	%		2.72	%		2.83	%		2.95	%
	Net interest margin-fully tax-equivalent ^(non-GAAP)		2.93	%		2.89	%		2.75	%		2.86	%		2.98	%
	Average earning assets/total average assets		90.43	%		90.36	%		90.52	%		90.48	%		90.73	%
	Average loans/average deposits		80.07	%		80.80	%		81.48	%		80.72	%		80.75	%
	Average noninterest deposits/total average deposits		30.19	%		30.06	%		30.25	%		31.69	%		33.50	%
	Period end equity/period end total assets		12.58	%		12.24	%		12.24	%		12.21	%		11.90	%
	Efficiency ratio^(non-GAAP)		70.93	%		68.98	%		73.25	%		76.17	%		66.21	%
	(1) Current reporting period regulatory capital ratios are preliminary.


TOWNEBANK
Selected Data (unaudited)
(dollars in thousands)

Investment Securities										% Change
	Q3			Q3			Q2			Q3 24 vs.		Q3 24 vs.
*Available-for-sale securities, at fair value*		2024			2023			2024		Q3 23		Q2 24
U.S. agency securities	$	291,814		$	300,161		$	281,934		(2.78	)%	3.50	%
U.S. Treasury notes		28,655			26,721			27,701		7.24	%	3.44	%
Municipal securities		455,722			484,587			442,474		(5.96	)%	2.99	%
Trust preferred and other corporate securities		91,525			74,024			88,228		23.64	%	3.74	%
Mortgage-backed securities issued by GSEs and GNMA		1,496,631			1,079,303			1,411,883		38.67	%	6.00	%
Allowance for credit losses		(1,171	)		(1,343	)		(1,541	)	(12.81	)%	(24.01	)%
Total	$	2,363,176		$	1,963,453		$	2,250,679		20.36	%	5.00	%
*Gross unrealized gains (losses) reflected in financial statements*
Total gross unrealized gains	$	6,703		$	475		$	1,983		1,311.16	%	238.02	%
Total gross unrealized losses		(117,319	)		(238,993	)		(174,911	)	(50.91	)%	(32.93	)%
Net unrealized gains (losses) and other adjustments on AFS securities	$	(110,616	)	$	(238,518	)	$	(172,928	)	(53.62	)%	(36.03	)%
*Held-to-maturity securities, at amortized cost*
U.S. agency securities	$	102,428		$	101,659		$	102,234		0.76	%	0.19	%
U.S. Treasury notes		96,942			433,015			97,171		(77.61	)%	(0.24	)%
Municipal securities		5,342			5,249			5,318		1.77	%	0.45	%
Trust preferred corporate securities		2,133			2,185			2,147		(2.38	)%	(0.65	)%
Mortgage-backed securities issued by GSEs		5,577			5,746			5,618		(2.94	)%	(0.73	)%
Allowance for credit losses		(77	)		(85	)		(79	)	(9.41	)%	(2.53	)%
Total	$	212,345		$	547,769		$	212,409		(61.23	)%	(0.03	)%

Total gross unrealized gains	$	323		$	82		$	175		293.90	%	84.57	%
Total gross unrealized losses		(7,929	)		(23,505	)		(12,880	)	(66.27	)%	(38.44	)%
Net unrealized gains (losses) in HTM securities	$	(7,606	)	$	(23,423	)	$	(12,705	)	(67.53	)%	(40.13	)%
Total unrealized gains (losses) on AFS and HTM securities	$	(118,222	)	$	(261,941	)	$	(185,633	)	(54.87	)%	(36.31	)%
										% Change
Loans Held For Investment	Q3			Q3			Q2			Q3 24 vs.		Q3 24 vs.
		2024			2023			2024		Q3 23		Q2 24
Real estate - construction and development	$	1,118,669		$	1,325,976		$	1,190,768		(15.63	)%	(6.05	)%
Commercial real estate - owner occupied		1,655,345			1,686,888			1,673,582		(1.87	)%	(1.09	)%
Commercial real estate - non owner occupied		3,179,699			3,025,985			3,155,958		5.08	%	0.75	%
Real estate - multifamily		750,906			542,611			682,537		38.39	%	10.02	%
Residential 1-4 family		1,891,216			1,818,843			1,887,420		3.98	%	0.20	%
HELOC		408,565			371,861			408,273		9.87	%	0.07	%
Commercial and industrial business (C&I)		1,256,511			1,237,524			1,297,538		1.53	%	(3.16	)%
Government		521,681			523,456			517,954		(0.34	)%	0.72	%
Indirect		546,887			548,621			558,216		(0.32	)%	(2.03	)%
Consumer loans and other		83,039			91,206			79,501		(8.95	)%	4.45	%
Total	$	11,412,518		$	11,172,971		$	11,451,747		2.14	%	(0.34	)%

										% Change
Deposits	Q3			Q3			Q2			Q3 24 vs.		Q3 24 vs.
		2024			2023			2024		Q3 23		Q2 24
Noninterest-bearing demand	$	4,267,628		$	4,444,861		$	4,303,773		(3.99	)%	(0.84	)%
Interest-bearing:
Demand and money market accounts		6,990,103			6,764,415			6,940,086		3.34	%	0.72	%
Savings		319,970			350,031			312,881		(8.59	)%	2.27	%
Certificates of deposits		2,785,469			2,321,498			2,715,848		19.99	%	2.56	%
Total		14,363,170			13,880,805			14,272,588		3.48	%	0.63	%


TOWNEBANK
Average Balances, Yields and Rate Paid (unaudited)
(dollars in thousands)

	Three Months Ended						Three Months Ended						Three Months Ended
	September 30, 2024						June 30, 2024						September 30, 2023
			Interest		Average				Interest		Average				Interest		Average
	Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
	Balance		Expense		Rate (1)		Balance		Expense		Rate (1)		Balance		Expense		Rate (1)
Assets:
Loans (net of unearned income and deferred costs)	$	11,419,428	$	156,610	5.46	%	$	11,471,669	$	155,374	5.45	%	$	11,169,924	$	144,457	5.13	%
Taxable investment securities		2,376,102		20,940	3.53	%		2,368,476		21,671	3.66	%		2,373,731		18,645	3.14	%
Tax-exempt investment securities		168,768		1,686	4.00	%		156,503		1,521	3.89	%		206,639		1,993	3.86	%
Total securities		2,544,870

TowneBank Reports Third Quarter 2024 Earnings