Investor Presentation
1
4th Quarter 2025
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.
Corporate Headquarters
Additional Information
6001 Harbour View Blvd Suffolk, VA 23435
757-638-6701
https://www.townebank.com
Please Contact: William B. Littreal 757-638-6813
William.Littreal@townebank.net
TowneBank at a Glance
Ranked on
Consistent Focus on
Earnings and GrowtTh
Earnings Growth
21.9%CAGR FY00 - FY25
Deposit Market SThare
#1
in Hampton Roads1
Best Banks List2
7 Years in a Row
Total Assets
$19.7B
Total Loans
$13.3B
Total Deposits
$16.5B
Core ROAA
1.11%Core ROTCE
13.74%NIM (FTE)
3.58%NIB Deposits / Total Deposits
31%10 Year Total Shareholder Return3
112%
Source: FDIC Summary of Deposits for the VA Beach-Norfolk-Newport News, VA MSA, data as of June 30, 2025
© 2025, Forbes Media LLC. Used with permission
Total Return as of 12/31/2025; Source: S&P Global, data collected 01/19/2026 Note: Financial results for the quarter ending December 31, 2025
Introduction
5
About TowneBank
Commitment
We value all employees and members by embracing their diverse talents, perspectives, and experiences, and by fostering inclusion that inspires innovation, encourages respect, and promotes success.
Mission
We will be a relationship and friendship driven local bank focused on basic human values that will serve to create a warm sense of belonging and financial well-being among our family members.
Strategy
We will offer a competitive array of business and personal financial services, delivered with only the highest ethical standards. Our commitment to exquisite service for our members will lead to our ability to create a reasonable rate of return for our shareholders, a bright future for our dedicated bankers, and a leadership role for our bank in promoting the social, cultural, and economic well-being of our community.
Community Commitment
We will strive to be a source of community pride by being a leader in community support activities through involvement of Towne family members, and the funding and fundraising activities of the TowneBank Foundation.
Unique Value Proposition
Banking
Wealth Management
Insurance
Mortgage
Property Management
(1) Source: S&P Global, Ownership Summary data as of 1/21/2026
Superior Shareholder Value
Super Community Bank Model
Local Decision Making
Extraordinary Member Experiences
Invested Insider Ownership (7.4%)1
Commitment to Community Service & Engagement
Culture of Caring
Embracing Diverse Talents, Perspectives & Experiences
Disciplined Acquirer and Experienced Integrator
Total Assets [Dollars in billions]
$16.4
$16.8
$17.2
$15.8
$14.6
$11.2
$11.9
$8.0
$8.5
$6.3
$4.7
$5.0
$3.6
$3.9
$4.1
$4.4
$1.4
$1.8
$2.2
$2.5
$3.1
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Village Bank & Old Point Financial
Corp.
Farmers Bank
$173 million Total Assets
NE North Carolina (Outer Banks)
Bank of Currituck
$272 million Total Assets Newport News-Hampton, VA
Harbor Bank
TOTAL ASSETS | $19.7 B |
Organic | $12.5 B |
Acquired | $7.2 B |
$19.7
Franklin Financial Corp. | Monarch Financial Holdings, Inc. | Paragon Commercial Corp. | |
$1.1 billion Total Assets Richmond, VA MSA | |||
$1.2 billion Total Assets Hampton Roads, VA MSA | $1.8 billion Total Assets Charlotte & Raleigh, NC MSA | ||
$603 million Total Assets
Hampton Roads, VA MSA
$746 million Total Assets
Richmond, VA MSA
$1.4 billion Total Assets
Hampton Roads, VA MSA
Diversified Business Model
Total Revenue
Noninterest Income1
67%
64%
66%
36%
33%
22%
20%
19%
40%
19%
38%
21%
FY2025 FY2025
20%
20%
FY2024 FY2024
21%
20%
40%
34%
FY2023 FY2023
Net Interest Income Noninterest Income Banking Insurance Mortgage Resort Property Mgmt(1) Normalized noninterest income excludes gain (loss) on investment securities, gain on sale of Beneflex (2023 & 2024), gain on sale of BHHS Towne Realty (2023)
Insurance Revenue
TowneBank Rank: Bank-owned Insurance Commission and Fees1
2010 Ranking |
Truist Bank |
Bank of America, National Association |
JPMorgan Chase Bank, National Association |
Wells Fargo Bank, National Association |
Cadence Bank |
Eastern Bank |
TD Bank, National Association |
PNC Bank, National Association |
Associated Bank, National Association |
Manufacturers and Traders Trust Company |
Frost Bank |
Trustmark National Bank |
Fifth Third Bank, National Association |
Barclays Bank Delaware |
TowneBank |
U.S. Bank National Association |
First Horizon Bank |
HSBC Bank USA, National Association |
First National Bank of Omaha |
Valley National Bank |
Today |
TowneBank |
Frost Bank |
First-Citizens Bank & Trust Company |
JPMorgan Chase Bank, N.A. |
Salem Five Cents Savings Bank |
The Adirondack Trust Company |
Univest Bank and Trust Co. |
Fifth Third Bank, National Association |
PNC Bank, National Association |
Citizens Bank, National Association |
WAFD Bank |
Peoples Bank |
Bank Forward |
Arvest Bank |
Benchmark Bank |
Pinnacle Bank |
Provident Bank |
First State Community Bank |
MountainOne Bank |
Bravera Bank |
(1) Bank-owned insurance commissions and fees excluding non-insurance agency generated revenue for commercial and savings banks; Source: S&P Global, Q3-25 data retrieved 1/19/2026
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