"TowneBank posted a strong first quarter achieving record total revenues of $246 million. We continue to invest in top talent across our Carolina footprint while maintaining a disciplined focus on credit quality, liquidity and robust capital levels to support future growth. Our Main Street Banking model remains well positioned to perform across a broad range of economic conditions," said G. Robert Aston, Jr., Executive Chairman.
Highlights for First Quarter 2026:
Towne successfully completed the acquisition of Dogwood State Bank ("Dogwood"), in January 2026. Included in that acquisition were $1.95 billion in loans, $190.08 million in securities, and $1.93 billion in deposits.
Total revenues were a record $246.45 million, an increase of $63.35 million, or 34.60%, compared to first quarter 2025. Net interest income increased $52.46 million, driven by an increase in interest income. Noninterest income increased $10.89 million.
Total deposits were $18.48 billion, an increase of 11.94%, or $1.97 billion, in comparison to December 31, 2025. Excluding $1.93 billion in Dogwood acquired deposits, total deposits would have increased $39.64 million, compared to the linked quarter.
Noninterest-bearing deposits increased $524.24 million, or 10.33%, compared to the linked quarter driven by acquired deposits of $544.48 million.
Loans held for investment were $15.26 billion, an increase of $1.93 billion, or 14.44%, compared to December 31, 2025. Excluding loans acquired in the quarter, total loans would have decreased $26.20 million, or 0.20%, compared to the linked quarter.
Annualized return on common shareholders' equity was 5.85% compared to 8.27% in first quarter 2025. Annualized return on average tangible common shareholders' equity (non-GAAP) was 9.58% compared to 11.50% in first quarter 2025.
Net interest margin was 3.58% for the quarter and tax-equivalent net interest margin (non-GAAP) was 3.60%, including purchase accounting accretion of 11 basis points, compared to the prior year quarter net interest margin of 3.14% and tax-equivalent net interest margin (non-GAAP) of 3.17%, including purchase accounting accretion of 3 basis points.
Net interest margin increased 2 basis points and spread increased 4 basis points, compared to the linked quarter, which included purchase accounting accretion of 15 basis points. Accretion related to the Dogwood transaction was compressed compared to previous transactions due to the Company's adoption of the new accounting standard expanding the use of the gross-up approach for purchased loans effective January 1, 2026.
We expect net interest income to be impacted by net purchase accounting accretion income of $8.34 million and $9.12 million in the remainder of 2026 and 2027, respectively.
The effective tax rate was 18.19% in the quarter compared to 12.30% in first quarter 2025 and 23.72% in the linked quarter. The change in the effective rate from first quarter 2026 to 2025 was due to increases in state tax expense and nondeductible merger and acquisition expenses. The lower effective tax rate in the current quarter compared to the linked quarter was primarily due to the increase in credits and losses related to LIHTC investment properties.
Quarterly Net Interest Income:
Net interest income was $172.94 million in first quarter 2026 compared to $120.48 million for the quarter ended March 31, 2025.
On an average basis, loans held for investment, with a yield of 5.67%, represented 76.65% of earning assets at March 31, 2026 compared to a yield of 5.38% and 74.15% of earning assets at March 31, 2025.
The cost of interest-bearing deposits was 2.33% for the quarter ended March 31, 2026, compared to 2.69% in first quarter 2025. Interest expense on deposits increased $5.38 million, or 8.01%, from the prior year quarter as higher volume outpaced decreases in rate.
Our total cost of deposits decreased to 1.63% from 1.89% for the quarter ended March 31, 2025 due to lower interest-bearing deposit rates.
Average interest-earning assets totaled $19.61 billion at March 31, 2026, compared to $17.73 billion in the linked quarter, an increase of 10.62%.
Average interest-bearing liabilities totaled $13.16 billion, an increase of $1.40 billion, or 11.95%, from the linked quarter. Total borrowings increased by $141.34 million over the linked quarter, due to debt assumed in the Dogwood acquisition.
Quarterly Provision for Credit Losses:
The quarterly provision for credit losses was an expense of $344 thousand compared to $2.42 million in the prior year quarter and a benefit of $169 thousand in the linked quarter.
The allowance for credit losses on loans increased $51.92 million in first quarter 2026, compared to the linked quarter. The initial allowance related to the January 2026 acquisition of Dogwood was $54.21 million, $31.26 million of which was attributable to its community banking portfolio and $22.95 million attributable to its government lending portfolio, which consists primarily of SBA loans.
Net loan charge-offs were $1.69 million in the quarter, $1.95 million in the linked quarter, and $626 thousand in the prior year quarter.
The ratio of net charge-offs to average loans on an annualized basis was 0.05% in first quarter 2026, 0.06% in the linked quarter, and 0.02% in first quarter 2025.
The allowance for credit losses on loans represented 1.31% of total loans at March 31, 2026, compared to 1.10% at December 31, 2025, and 1.08% at March 31, 2025. Our March 31, 2026 allowance for credit losses is further broken down into community banking which represented 1.15% of total loans and government lending which represented 0.16% of total loans.
The allowance for credit losses on loans was 6.08 times nonperforming loans compared to 19.15 times at March 31, 2025 and 12.57 times at December 31, 2025.
Quarterly Noninterest Income:
Total noninterest income was $73.51 million compared to $62.62 million in 2025, an increase of $10.89 million, or 17.38%.
Government lending income, net was $4.20 million in first quarter 2026 and represented a new noninterest income source related to the acquisition of Dogwood.
Residential mortgage banking income was $11.73 million compared to $10.36 million in first quarter 2025. Loan volume increased to $575.35 million in first quarter 2026 from $445.19 million in first quarter 2025. Residential purchase activity was 77.57% of production volume in first quarter 2026 compared to 89.94% in first quarter 2025.
Gross margins on residential mortgage sales were 3.09%, a decrease of 10 basis points from 3.19% in the linked quarter and 9 basis points from 3.18% in first quarter 2025.
Service charges on deposit accounts increased $1.32 million over prior year due to the acquisition of three banks in the past 12 months.
Property management fee revenue increased $1.89 million, or 17.88%, to $12.44 million in first quarter 2026, compared to first quarter 2025. The increase was driven by changes to our fee structure resulting in revenue growth.
Quarterly Noninterest Expense:
Total noninterest expense was $195.89 million compared to $130.54 million in 2025, an increase of $65.35 million, or 50.06%. This increase was primarily attributable to acquisition-related expenses and growth in salaries and employee benefits.
The acquisitions of Dogwood, Old Point Financial Corporation ("Old Point"), and Village Bank and Trust Financial Corp. ("Village"), as well as the sale of Resort Property Management, resulted in $31.69 million in acquisition-related expenses in the quarter.
An increase in banking personnel related to the Dogwood, Old Point, and Village acquisitions represented $10.39 million of the $18.10 million increase in salaries and benefits expenses, compared to the prior year quarter. Additional contributing factors were annual base salary adjustments that went into effect mid-September 2025 and performance-based incentives.
Consolidated Balance Sheet Highlights:
Total assets were $22.36 billion for the quarter ended March 31, 2026, a $2.67 billion increase compared to $19.69 billion at December 31, 2025.
Loans held for investment increased $1.93 billion, or 14.44%, compared to the linked quarter, driven by the acquisition of Dogwood.
Mortgage loans held for sale increased $3.23 million, or 1.91%, compared to prior year and $17.29 million, or 11.20%, compared to the linked quarter, driven by decreases in rates early in first quarter 2026, which contributed to increases in refinance as well as purchase activities.
Total deposits increased $1.97 billion, or 11.94%, compared to the linked quarter, driven by acquisition-related increases in both noninterest-bearing and interest-bearing demand deposits.
Noninterest-bearing deposits increased $0.52 billion, or 10.33%, compared to the linked quarter.
Total borrowings increased $141.34 million, or 38.08%, compared to the linked quarter, due to acquired FHLB borrowings.
Investment Securities:
Total investment securities were $3.03 billion compared to $2.90 billion at December 31, 2025 and $2.70 billion at March 31, 2025. The weighted average duration of the portfolio at March 31, 2026 was 3.4 years. The carrying value of the available-for-sale debt securities portfolio included net unrealized losses of $81.40 million at March 31, 2026, compared to $73.07 million at December 31, 2025 and $119.25 million at March 31, 2025, with the changes in fair value marks due to the change in interest rates.
Loans and Asset Quality:
Total loans held for investment were $15.26 billion at March 31, 2026 and $13.34 billion at December 31, 2025. Excluding loans acquired in the quarter, total loans declined $26.20 million compared to the linked quarter.
Nonperforming assets, which consists of nonperforming loans, foreclosed property, and former bank premises, were $51.11 million, or 0.23% of total assets, compared to $14.36 million, or 0.07%, at the linked quarter end, and $7.37 million, or 0.04%, at March 31, 2025. Former bank premises of $14.02 million have executed purchase agreements or purchase agreements under review that are expected to close by November 2026.
Nonperforming loans were 0.21% of period end loans at March 31, 2026, compared to 0.09% in the linked quarter, and 0.06% at March 31, 2025. The increase in the current quarter was primarily driven by loans acquired in the Dogwood transaction.
Foreclosed property and former bank premises totaled $18.36 million at March 31, 2026, and consisted of $505 thousand in other real estate owned, $1.53 million in repossessed autos, and $16.32 million in acquisition-related former bank premises. Foreclosed property and former bank premises totaled totaled $2.63 million at December 31, 2025, and consisted of $401 thousand in other real estate owned, $1.35 million in repossessed autos, and $879 thousand in acquisition-related former bank premises.
Deposits and Borrowings:
Total deposits were $18.48 billion compared to $16.51 billion at December 31, 2025. Excluding $1.93 billion in acquired deposits, total deposits would have increased $39.64 million, or 0.97% on an annualized basis from the linked quarter.
The ratio of period end loans held for investment to deposits was 82.58% compared to 80.78% at December 31, 2025 and 79.77% at March 31, 2025.
Noninterest-bearing deposits were 30.29% of total deposits at March 31, 2026 compared to 30.73% at December 31, 2025 and 29.53% at March 31, 2025. Noninterest-bearing deposits increased $524.24 million, or 10.33%, compared to the linked quarter, but would have declined $20.25 million excluding acquired noninterest-bearing deposits.
Total borrowings were $512.48 million compared to $371.14 million at December 31, 2025, an increase of $141.34 million, or 38.08%. FHLB borrowings acquired with Dogwood totaled $155.00 million.
Capital:
Book value per common share was $31.31 compared to $30.67 at December 31, 2025 and $29.00 at March 31, 2025.
Tangible book value per common share (non-GAAP) was $21.49 compared to $21.93 at December 31, 2025 and $22.17 at March 31, 2025.
Resort Property Management Sale:
On April 3, 2026, the Company completed the sale of its Resort Property Management segment for $250 million.
Anticipated gain on the transaction of approximately $195 million after estimated deal costs of 5% of purchase price.
Transferred cash of approximately $42 million to the parent company prior to closing.
Retained land and buildings of approximately $10 million to be converted to Bank use or sold separately.
In anticipation of the transaction, classified the segment as held for sale in first quarter 2026 and presented as held for sale assets and held for sale liabilities on the Consolidated Balance Sheets.
"Our decision to divest Towne Vacations underscores our proven ability to unlock off balance sheet value for our shareholders. Looking ahead, we will identify opportunities to grow and strengthen our Towne Financial Services fee based platform," stated William I. Foster III, President and Chief Executive Officer.
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.
Today, TowneBank operates over 70 banking offices throughout Hampton Roads and Central Virginia, Eastern and Central North Carolina, the Greenville and upstate region of South Carolina, and Charleston, South 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, and Towne Trust Company, N.A. With total assets of $22.36 billion as of March 31, 2026, 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 2023 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, trade restrictions and tariffs, 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 and changes impacting the rulemaking, supervision, examination and enforcement priorities of the federal banking agencies, that may adversely affect our business; our ability to successfully integrate the businesses from recently completed acquisitions, including our mergers with Old Point Financial Corporation and Dogwood State Bank, to the extent that that process may take longer or be more difficult, time-consuming, or costly to accomplish than expected; deposit attrition, operating costs, customer losses, and business disruption associated with recently completed acquisitions, including reputational risk and adverse effects on relationships with employees, customers or other business partners, that may be greater than expected; costs or difficulties related to the integration of the businesses that we have acquired that may be greater than expected; expected growth opportunities or cost savings associated with recently completed acquisitions that may not be fully realized or realized within the expected time frame; the diversion of management's attention and time from ongoing business operations and opportunities on merger and integration related matters; the introduction of new lines of business or new products and services; 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; competitors that 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, including any adverse impact of actual and proposed cuts to federal spending, including defense, security and military spending, on the economy. 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, 2025 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, 757-638-6780William 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
March 31,
December 31,
September 30,
June 30,
March 31,
2026
2025
2025
2025
2025
Income and Performance Ratios:
Total revenue
$
246,447
$
219,943
$
222,584
$
210,093
$
183,097
Net income
41,101
40,850
44,612
41,319
44,009
Net income available to common shareholders
40,993
40,630
44,295
40,887
43,714
Net income per common share - diluted
0.45
0.51
0.58
0.54
0.58
Book value per common share
31.31
30.67
30.27
29.41
29.00
Book value per common share - tangible (non-GAAP)
21.49
21.93
21.49
21.80
22.17
Return on average assets
0.76
%
0.82
%
0.94
%
0.91
%
1.03
%
Return on average assets - tangible (non-GAAP)
0.89
%
0.94
%
1.05
%
1.01
%
1.12
%
Return on average equity
5.84
%
6.67
%
7.72
%
7.52
%
8.21
%
Return on average equity - tangible (non-GAAP)
9.55
%
10.32
%
11.39
%
10.94
%
11.39
%
Return on average common equity
5.85
%
6.69
%
7.75
%
7.54
%
8.27
%
Return on average common equity - tangible (non-GAAP)
9.58
%
10.36
%
11.45
%
10.99
%
11.50
%
Noninterest income as a percentage of total revenue
29.83
%
27.73
%
33.98
%
34.69
%
34.20
%
Regulatory Capital Ratios (1):
Common equity tier 1
11.43
%
11.34
%
11.18
%
11.77
%
12.75
%
Tier 1
11.47
%
11.39
%
11.23
%
11.82
%
12.87
%
Total
13.87
%
14.14
%
13.98
%
14.49
%
15.65
%
Tier 1 leverage ratio
9.75
%
9.36
%
9.84
%
9.93
%
10.61
%
Asset Quality:
Allowance for credit losses on loans to nonperforming loans
6.08
x
12.57
x
19.38
x
16.81
x
19.15
x
Allowance for credit losses on loans to period end loans
1.31
%
1.10
%
1.11
%
1.09
%
1.08
%
Nonperforming loans to period end loans
0.21
%
0.09
%
0.06
%
0.06
%
0.06
%
Nonperforming assets to period end assets
0.23
%
0.07
%
0.05
%
0.05
%
0.04
%
Net charge-offs (recoveries) to average loans (annualized)
0.05
%
0.06
%
0.01
%
—
%
0.02
%
Net charge-offs (recoveries)
$
1,690
$
1,948
$
255
$
19
$
626
Nonperforming loans
$
32,751
$
11,726
$
7,698
$
7,982
$
6,586
Former bank premises
16,323
879
885
—
—
Foreclosed property
2,037
1,754
1,798
1,306
786
Total nonperforming assets
$
51,111
$
14,359
$
10,381
$
9,288
$
7,372
Loans past due 90 days and still accruing interest
$
2,487
$
890
$
1,863
$
210
$
15
Allowance for credit losses on loans
$
199,267
$
147,343
$
149,175
$
134,187
$
126,131
Mortgage Banking:
Loans originated, mortgage
$
469,323
$
504,732
$
491,921
$
494,108
$
300,699
Loans originated, joint venture
106,027
118,597
144,440
177,359
144,495
Total loans originated
$
575,350
$
623,329
$
636,361
$
671,467
$
445,194
Number of loans originated
1,423
1,551
1,679
1,750
1,181
Number of originators
162
161
169
166
161
Purchase %
77.57
%
82.23
%
91.84
%
92.37
%
89.94
%
Loans sold
$
527,428
$
652,853
$
657,822
$
596,009
$
475,518
Rate lock asset
$
2,003
$
1,145
$
2,213
$
2,186
$
1,880
Gross realized gain on sales and fees as a % of loans originated
3.09
%
3.19
%
3.32
%
3.13
%
3.18
%
Other Ratios:
Net interest margin
3.58
%
3.56
%
3.48
%
3.38
%
3.14
%
Net interest margin-fully tax-equivalent (non-GAAP)
3.60
%
3.58
%
3.50
%
3.40
%
3.17
%
Average earning assets/total average assets
89.60
%
89.96
%
90.03
%
90.23
%
90.32
%
Average loans/average deposits
83.22
%
80.57
%
80.92
%
81.09
%
80.01
%
Average noninterest deposits/total average deposits
30.24
%
31.28
%
31.30
%
30.88
%
29.68
%
Period end equity/period end total assets
12.96
%
12.34
%
12.18
%
12.19
%
12.58
%
Efficiency ratio (non-GAAP)
76.96
%
73.37
%
67.08
%
69.82
%
70.41
%
(1) Current reporting period regulatory capital ratios are preliminary.
TOWNEBANK
Selected Data (unaudited)
(dollars in thousands)
Investment Securities
% Change
Q1
Q1
Q4
Q1 26 vs.
Q1 26 vs.
Available-for-sale securities, at fair value
2026
2025
2025
Q1 25
Q4 25
U.S. agency securities
$
386,157
$
320,190
$
365,644
20.60
%
5.61
%
U.S. Treasury notes
83,396
78,184
83,631
6.67
%
(0.28
)%
Municipal securities
535,652
439,379
494,380
21.91
%
8.35
%
Trust preferred and other corporate securities
161,453
98,463
142,994
63.97
%
12.91
%
Mortgage-backed securities issued by GSEs and GNMA
1,697,124
1,535,217
1,624,747
10.55
%
4.45
%
Allowance for credit losses
(1,355
)
(1,262
)
(1,207
)
7.37
%
12.26
%
Total
$
2,862,427
$
2,470,171
$
2,710,189
15.88
%
5.62
%
Gross unrealized gains (losses) reflected in financial statements
Total gross unrealized gains
$
9,894
$
5,909
$
13,566
67.44
%
(27.07
)%
Total gross unrealized losses
(91,293
)
(125,156
)
(86,632
)
(27.06
)%
5.38
%
Net unrealized gains (losses) and other adjustments on AFS securities
$
(81,399
)
$
(119,247
)
$
(73,066
)
(31.74
)%
11.40
%
Held-to-maturity securities, at amortized cost
U.S. agency securities
$
18,339
$
92,805
$
48,252
(80.24
)%
(61.99
)%
U.S. Treasury notes
95,551
96,481
95,783
(0.96
)%
(0.24
)%
Municipal securities
5,490
5,390
5,464
1.86
%
0.48
%
Trust preferred corporate securities
2,054
2,107
2,068
(2.52
)%
(0.68
)%
Mortgage-backed securities issued by GSEs
5,093
5,235
5,130
(2.71
)%
(0.72
)%
Allowance for credit losses
(33
)
(68
)
(65
)
(51.47
)%
(49.23
)%
Total
$
126,494
$
201,950
$
156,632
(37.36
)%
(19.24
)%
Total gross unrealized gains
$
196
$
176
$
253
11.36
%
(22.53
)%
Total gross unrealized losses
(2,314
)
(6,563
)
(2,681
)
(64.74
)%
(13.69
)%
Net unrealized gains (losses) in HTM securities
$
(2,118
)
$
(6,387
)
$
(2,428
)
(66.84
)%
(12.77
)%
Total unrealized gains (losses) on AFS and HTM securities
$
(83,517
)
$
(125,634
)
$
(75,494
)
(33.52
)%
10.63
%
% Change
Loans Held For Investment
Q1
Q1
Q4
Q1 26 vs.
Q1 26 vs.
Community Banking:
2026
2025
2025
Q1 25
Q4 25
CRE - construction and development
$
1,450,284
$
1,006,086
$
1,266,242
44.15
%
14.53
%
CRE - owner occupied
2,359,542
1,654,401
1,932,015
42.62
%
22.13
%
CRE - non-owner occupied
4,284,890
3,329,728
3,777,350
28.69
%
13.44
%
CRE - multifamily
894,653
841,330
858,212
6.34
%
4.25
%
Residential 1-4 family
2,334,199
1,886,107
2,181,949
23.76
%
6.98
%
HELOC
674,293
429,152
583,725
57.12
%
15.52
%
Commercial and industrial business (C&I)
1,619,980
1,337,254
1,455,455
21.14
%
11.30
%
Government
499,769
511,676
507,586
(2.33
)%
(1.54
)%
Indirect
693,811
570,795
672,401
21.55
%
3.18
%
Consumer loans and other
219,057
86,217
100,869
154.08
%
117.17
%
Total Community Banking
$
15,030,478
$
11,652,746
$
13,335,804
28.99
%
12.71
%
Government Guaranteed Lending:
Real estate - construction and development
28,840
—
—
N/M
N/M
Commercial real estate - owner occupied
88,072
—
—
N/M
N/M
Commercial and industrial business (C&I)
113,770
—
—
N/M
N/M
Total Government Guaranteed Lending
$
230,682
$
—
$
—
N/M
N/M
Total Loans Held for Investment
$
15,261,160
$
11,652,746
$
13,335,804
30.97
%
14.44
%
TOWNEBANK
Selected Data (unaudited)
(dollars in thousands)
% Change
Deposits
Q1
Q1
Q4
Q1 26 vs.
Q1 26 vs.
2026
2025
2025
Q1 25
Q4 25
Noninterest-bearing demand deposits
$
5,597,395
$
4,313,553
$
5,073,157
29.76
%
10.33
%
Interest-bearing:
Demand and money market accounts
9,293,443
7,463,355
8,390,884
24.52
%
10.76
%
Savings
457,028
312,151
332,752
46.41
%
37.35
%
Certificates of deposits
3,132,406
2,519,489
2,712,324
24.33
%
15.49
%
Total
18,480,272
14,608,548
16,509,117
26.50
%
11.94
%
Acquisition Summary - Day 1 Balances
Total Acquired
2026
2025
2025-2026
Dogwood (1)
Old Point (2)
Village (3)
Total securities
$
477,508
$
190,076
$
211,877
$
75,555
Total loans
3,486,512
1,951,553
958,719
576,240
Core deposit intangibles
82,900
30,490
31,390
21,020
Total assets
4,497,823
2,350,130
1,401,765
745,928
Noninterest-bearing demand deposits
1,089,093
544,484
306,066
238,543
Interest-bearing deposits
2,690,836
1,387,029
904,857
398,950
Total deposits
3,779,929
1,931,513
1,210,923
637,493
Advances from the FHLB
205,000
155,000
40,000
10,000
Subordinated debt, net
39,693
—
25,274
14,419
Total liabilities
4,072,488
2,119,639
1,284,434
668,415
Goodwill
$
364,487
$
227,470
$
94,025
$
42,992
Initial allowance for credit losses on loans
57,946
54,207
2,048
1,691
Initial provision for credit losses (4)
17,504
—
11,449
6,055
(1) Dogwood State Bank was acquired January 12, 2026
(2) Old Point Financial Corporation was acquired September 1, 2025.
(3) Village Bank and Trust Corp. was acquired April 1, 2025.
(4) ASU 2025-08 Financial Instruments - Credit Losses Measurement of Credit Losses on Financial Instruments - Purchased Loans, was adopted January 1, 2026
Three Months Ended
Net Charge-offs
March 31,
December 31,
September 30,
June 30,
March 31,
2026
2025
2025
2025
2025
Community bank
(284
)
1,159
(116
)
(418
)
142
Indirect
414
789
371
437
484
Government guaranteed lending
1,560
—
—
—
—
Total
$
1,690
$
1,948
$
255
$
19
$
626
TOWNEBANK
Average Balances, Yields and Rate Paid (unaudited)
(dollars in thousands)
Three Months Ended
Three Months Ended
Three Months Ended
March 31, 2026
December 31, 2025
March 31, 2025
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)
$
15,032,919
$
210,226
5.67
%
$
13,352,669
$
190,556
5.66
%
$
11,527,915
$
153,068
5.38
%
Taxable investment securities
2,805,229
25,181
3.59
%
2,687,834
24,255
3.61
%
2,478,048
21,301
3.44
%
Tax-exempt investment securities
245,092
2,625
4.28
%
199,472
2,385
4.78
%
176,081
1,860
4.23
%
Total securities
3,050,321
27,806
3.65
%
2,887,306
26,640
3.69
%
2,654,129
23,161
3.49
%
Interest-bearing deposits
1,388,016
11,459
3.35
%
1,301,770
11,825
3.60
%
1,199,650
11,801
3.99
%
Loans held for sale
140,438
2,077
5.92
%
187,911
2,794
5.95
%
164,358
2,653
6.46
%
Total earning assets
19,611,694
251,568
5.20
%
17,729,656
231,815
5.19
%
15,546,052
190,683
4.97
%
Less: allowance for loan losses
(179,029
)
(149,047
)
(124,265
)
Total nonearning assets
2,455,700
2,126,757
1,790,075
Total assets
$
21,888,365
$
19,707,366
$
17,211,862
Liabilities and Equity:
Interest-bearing deposits
Demand and money market
$
9,081,281
$
44,822
2.00
%
$
8,266,287
$
42,226
2.03
%
$
7,279,365
$
40,606
2.26
%
Savings
421,240
613
0.59
%
331,959
626
0.75
%
312,118
714
0.93
%
Certificates of deposit
3,097,422
27,073
3.54
%
2,789,603
26,125
3.72
%
