TOWN News & Events

Reports Q4 revenue $219.94M, consensus $225.43M. Reports Q4 tangible book value per share $21.93. Reports Q4 CET1 capital ratio 11.34%. "We are pleased to announce record 2025 core earnings of $3.02 per share, which excludes the impacts of one-time expenses related to merger activity. This year marks a significant period of transformation for our company as we strengthened our presence in Hampton Roads, completed our expansion in the Richmond markets, and advanced our growing footprint in the Carolinas. We are firmly committed to strong credit performance, robust liquidity and healthy capital levels. As we look ahead to 2026, I want to extend my sincere appreciation to our nearly 3,000 dedicated teammates. Your leadership and commitment to our mission of Serving Others and Enriching Lives make achievements like these possible," said G. Robert Aston, executive chairman.

TowneBank announced the completion of its merger with Raleigh-based Dogwood State Bank. The merger substantially enhances TowneBank's strategic journey down the fast-growing Interstate 85 corridor from Richmond, Virginia, and into Greenville and the upstate region of South Carolina. The merger also strengthens TowneBank's position in key North Carolina markets, including Raleigh, Charlotte, Greensboro-Winston Salem, and Greenville. In addition, the merger expands the bank's footprint along the Eastern North Carolina coast from the Outer Banks to include Morehead City, Wilmington, and Fayetteville, together with a new location in historic Charleston, South Carolina. A location in Elizabethton, Tennessee, a city near the Tri-Cities area of Johnson City, Kingsport, and Bristol, rounds out the expansion. The merger was announced on August 19, 2025, and received overwhelming support at the special meeting of Dogwood shareholders held in December 2025. Following the merger, which was effective on January 12, 2026, Dogwood locations will operate as "Dogwood State Bank, a Division of TowneBank" until November 2026, when the core systems and operations of Dogwood are scheduled to be converted into those of TowneBank. Steven W. Jones, the former chief executive officer of Dogwood, will continue in a key leadership role with the combined company and join TowneBank as President of the Carolinas, serving as a member of the TowneBank Corporate Management Group. Mr. Jones and George Perkins, a former director of Dogwood, were appointed to the TowneBank Board of Directors, effective January 12, 2026.

Reports Q3 revenue $215.7M, consensus $220.7M. The company states: "The quarterly provision for credit losses was an expense of $15.28 million compared to a benefit of $1.10 million in the prior year quarter and an expense of $6.41 million in the linked quarter. The provision includes an initial provision for credit losses of $12.00 million related to loans and commitments acquired in the Old Point transaction. Net loan charge-offs were $254 thousand in the quarter, $19 thousand in the linked quarter, and $677 thousand in the prior year quarter. The ratio of net charge-offs to average loans on an annualized basis was 0.01% in third quarter 2025, 0.02% in third quarter 2024, and 0.00% in the linked quarter." "We delivered another strong quarter with total revenue up nearly 24% year-over-year. During the period, we announced a new partnership with Dogwood and completed the Old Point acquisition. Our disciplined approach, partnering with leading organizations in high growth markets, continues to drive earnings momentum, reflected in a 3.50% tax-equivalent margin. Towne's resilient business model and flexible balance sheet position us well to navigate an uncertain economic environment," said G. Robert Aston, Jr., Executive Chairman.

TowneBank and Dogwood State Bank announced the signing of a definitive merger agreement pursuant to which TowneBank will acquire Dogwood State Bank. The proposed transaction enhances TowneBank's strategic journey. Pro forma for TowneBank's pending acquisition of Old Point Financial Corporation and the proposed acquisition of Dogwood, the combined company would have total assets of approximately $22 billion, loans of approximately $16 billion and deposits of approximately $19 billion at close of the transactions. TowneBank expects the acquisition of Dogwood to be approximately 8.0% accretive to 2027E earnings per share with fully phased-in cost savings on a GAAP basis. Under the terms of the merger agreement, common shareholders of Dogwood will receive a fixed exchange ratio of 0.700 shares of TowneBank common stock for each outstanding share of Dogwood common stock. This implies a deal value per share of $25.04 or approximately $476.2 million based on TowneBank's 15-day average closing stock price of $35.77 on August 18, 2025.