Business
TowneBank Reports Second Quarter 2020 Earnings
SUFFOLK, Va., July 23, 2020 (GLOBE NEWSWIRE) -- TowneBank (the “Company”) (NASDAQ: TOWN) today reported earnings for the quarter ended June 30, 2020 of $34.61
About this update from Towne Bank
[{"type":"text","content":"SUFFOLK, Va., July 23, 2020 (GLOBE NEWSWIRE) -- TowneBank (the “Company”) (NASDAQ: TOWN) today reported earnings for the quarter ended June 30, 2020 of $34.61 million, or $0.48 per diluted share, compared to $34.64 million, or $0.48 per diluted share, for the quarter ended June 30, 2019.\n “Our second quarter performance demonstrated the benefits of our diverse revenue model. Despite the headwinds from economic uncertainty and increased credit provisions, we delivered a solid quarter highlighted by rebounds in noninterest income from our Realty segment. Our deposits climbed to record levels enhancing liquidity and strong capital ratios position us well to navigate the challenging environment. We will also continue to be diligent in our focus on credit risk management,” said G. Robert Aston, Jr., Executive Chairman. Highlights for Second Quarter 2020 Compared to Second Quarter 2019: Total revenues were a record $162.66 million, an increase of $18.12 million, or 12.54%.Loans held for investment were $9.80 billion, an increase of $1.68 billion, or 20.61%, from June 30, 2019, and $1.02 billion, or 11.59%, from March 31, 2020. The balance at June 30, 2020 included $1.09 billion of loans originated under the Small Business Administration’s Paycheck Protection Program (“PPP”).Total deposits were $11.26 billion, an increase of $2.00 billion, or 21.54%, compared to prior year and $1.96 billion, or 21.02%, from March 31, 2020.Noninterest bearing deposits increased by 43.23%, to $4.23 billion, representing 37.52% of total deposits. Compared to the linked quarter, noninterest bearing deposits increased 38.09%.Annualized return on common shareholders' equity was 8.24% and annualized return on average tangible common shareholders' equity was 12.44% (non-GAAP).Net interest margin for the quarter was 2.85% and taxable equivalent net interest margin (non-GAAP) was 2.87%.Effective tax rate of 17.74% in the quarter compared to 20.47% in the second quarter of 2019. “I am especially proud of the outstanding service our teammates delivered to our members and the communities we serve. At Towne, we delivered over $1 billion in PPP funding to support businesses in our communities helping to save nearly 130,000 jobs for local families. In addition, we created more than 650 new relationships out of the PPP process,” stated J. Morgan Davis, President and C...