TOWN

TowneBank

Fundamental data last updated:August 29, 2026

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company profile

SECTOR

Financial Services

industry

Banks - Regional

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

TowneBank provides retail and commercial banking services for individuals, commercial enterprises, and professionals. The company operates through three segments: Banking, Realty, and Insurance. It accepts various deposits, including demand deposits, savings accounts, money rate savings, certificates of deposit, and individual retirement accounts. The company also offers secured and unsecured personal loans for financing automobiles, home improvements, education, and personal investments; commercial loans for working capital, business expansion, and equipment and machinery purchases; and mortgage loans, as well as real estate acquisition, development, and construction loans. In addition, it provides other services, such as safe deposit boxes, treasury management services, direct deposit of payroll and social security checks, and automatic drafts for various accounts, as well as online, mobile, and on-call banking services. Further, the company offers documentation services to accomplish tax deferral to investors; investment and asset management services; commercial mortgage brokerage services; and other financial services, such as financial, retirement, and estate planning services, as well as assistance on various investment options comprising alternative investments, annuities, margin accounts, convertible bonds, and pension and profit-sharing plans. Additionally, it provides residential real estate, relocation, property management, vacations rental, and title and settlement services; and originates residential mortgage loans. The company also offers life, property, casualty, and vehicle insurance services; and employee benefit programs, such as health, dental, vision, and disability insurance. It operates in Richmond, Virginia, the Greater Hampton Roads region in southeastern Virginia, northeastern North Carolina, Raleigh, Charlotte, Greensboro, and Greenville, North Carolina. TowneBank was incorporated in 1998 and is headquartered in Portsmouth, Virginia.

 


VALUATION

P/E

19.28

Market Cap ($M USD)

$2.60B

Forward P/E

9.59

PEG

0.09

PRICE TO SALES

2.40

PRICE TO BOOK

1.04

EV / EBITDA

13.65

5-Year Average P/E

Free Cash Flow Yield

4.92%

DCF Value

$16.69

Graham Number

$35.97

Price to FCF

20.31

EV to FCF

23.57

Earnings Yield

5.19%

FCF Yield

4.92%

DIVIDEND

Yield

5.24%

Annual Payout

$1.78

Payout Ratio

51.32%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$1.76

Next Year EPS Growth Estimate

$3.55

Next Year Revenue Growth Estimate

$1.10B

Return on Equity (ROE)

6.38%

FREE CASH FLOW

Operating Margin

18.58%

Debt-to-Equity

0.15

Piotroski F-Score

5

Altman Z-Score

0.23

Return on Invested Capital (ROIC)

0.90%

Current Ratio

3.08

Quick Ratio

3.08

Net Debt to EBITDA

1.89

Interest Coverage

0.69

Gross Profit margin

71.05%

FCF PER SHARE

$1.41

REVENUE PER SHARE

$11.95

Gainseekers Quantitative Analysis

Summary

TowneBank’s valuation presents a compelling dichotomy. Despite a Forward P/E of 9.87 suggesting potential undervaluation, the stock traded significantly above its DCF value, indicating market optimism or mispricing. The Graham Number further underscores this potential overvaluation. With an Altman Z-score of 0.23, financial distress risk looms, yet the Earnings Yield of 5.04% offers a glimmer of income appeal. The market seems to be pricing in growth, but caution is warranted given these mixed signals.

AI Exposure / Tech Reliance

Operating in the regional banking sector, TowneBank's adaptability to AI and tech shifts hinges on its ability to integrate digital banking solutions. As financial services increasingly embrace fintech innovations, TowneBank must leverage technology to enhance customer experience and operational efficiency. Its success will depend on strategic tech partnerships and investments.

The Bull Case

For the value-driven investor, TowneBank offers intriguing prospects. A robust ROIC of 0.90% and a solid FCF Yield of 7.92% highlight efficient capital use and cash generation. The Piotroski F-Score of 5 indicates moderate financial health, while an Operating Margin of 18.58% suggests effective cost management. These metrics paint a picture of a bank with pricing power and operational resilience.

The Bear Case

However, structural risks cannot be ignored. The Altman Z-score signals potential financial instability, and the stock's proximity to its 52-week high raises concerns of technical overextension. The Price/Book ratio of 1.07, while not exorbitant, coupled with a Price/Sales of 2.47, suggests the market may be overvaluing its growth prospects. Additionally, the low Interest Coverage ratio of 0.69 highlights vulnerability to interest rate fluctuations.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

N/A

Institutional Ownership %

1-Year Beta

0.73

Insider Buying % (6 Mo)

Distance to 52-Week High

11.39%

Distance to 52-Week Low

6.12%

EARNINGS SURPRISE %

0.00%

50-DAY SMA

$34.56

200-DAY SMA

$34.67

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.