SUFFOLK, Va., July 22, 2026 (GLOBE NEWSWIRE) -- TowneBank (the "Company" or "Towne") (NASDAQ:TOWN) today reported earnings for the quarter ended June 30, 2026 of $193.19 million, or $2.09 per diluted share, compared to $40.89 million, or $0.54 per diluted share, for the quarter ended June 30, 2025. Excluding certain items affecting comparability, core earnings (non-GAAP) were $72.01 million, or $0.78 per diluted share, in the current quarter compared to $63.39 million, or $0.84 per diluted share, for the quarter ended June 30, 2025.

"Our second quarter results demonstrate the strength and resilience of our Main Street Banking model. We continued to expand margin, increase noninterest-bearing deposit balances, and uphold our disciplined approach to credit risk management. Additionally, the sale of Towne Vacations generated a gain of nearly $200 million, significantly enhancing our capital levels and tangible book value. We are pleased by the early results of our strategic growth initiatives in the Carolinas and remain focused on expanding our Insurance business through both organic growth and selective acquisition opportunities," said G. Robert Aston, Jr., Executive Chairman.

Highlights for Second Quarter 2026:

Total deposits were $18.71 billion, an increase of 1.26%, or $233.17 million, compared to March 31, 2026.
Noninterest-bearing deposits increased $245.55 million, or 4.39%, compared to the linked quarter driven by growth in commercial deposits.
Loans held for investment were $15.17 billion, a decrease of $91.49 million, or 0.60%, compared to March 31, 2026.
Total revenues were $444.27 million, an increase of $234.17 million, or 111.46%, compared to second quarter 2025. Noninterest income increased $186.27 million, driven by a $198.55 million gain on the sale of our Resort Property Management segment. Net interest income increased $47.90 million, as higher loan volumes and loan yields drove an improvement in interest income while cost of deposits decreased by 25 basis points.
Annualized return on common shareholders' equity was 25.72% compared to 7.54% in second quarter 2025. Excluding certain items affecting comparability, annualized return on common shareholders' equity (non-GAAP) was 9.59% compared to 11.69% in second quarter 2025.
Annualized return on average tangible common shareholders' equity (non-GAAP) was 37.76% compared to 10.99% in second quarter 2025. Excluding certain items affecting comparability, annualized return on average tangible common shareholders' equity (non-GAAP) was 14.63% compared to 16.61% in second quarter 2025.
Net interest margin was 3.68% for the quarter and tax-equivalent net interest margin (non-GAAP) was 3.70%, including purchase accounting accretion of 11 basis points, compared to the prior year quarter net interest margin of 3.38% and tax-equivalent net interest margin (non-GAAP) of 3.40%, including purchase accounting accretion of 6 basis points.
Certain events related to the sale of our Resort Property Management segment impacted earnings and earnings-related ratios in the quarter. These events consisted of a pre-tax gain on the sale for $198.55 million, a special charitable foundation contribution of $25.00 million, and merger and acquisition related expenses of $8.68 million. Additionally, TowneBank paid a special dividend of $0.70 per common share, representing approximately 32% of the gain on the sale of the Resort Property Management segment before taxes and deal costs.
We expect net interest income to be impacted by net purchase accounting accretion income of $6.56 million and $10.31 million in the remainder of 2026 and 2027, respectively.
The effective tax rate was 23.72% in the quarter compared to 22.25% in second quarter 2025 and 18.19% in the linked quarter. The change in the effective rate from second quarter 2026 compared to 2025 and the linked quarter was due to the increase in state tax expense related to the sale of the Resort Property Management business.

"I’m highly encouraged with the early success of our talent acquisition strategy across the Carolinas. Since the beginning of the year, we have added 24 experienced Towne Bankers, including four market executives, eight private and commercial bankers, and two treasury sales officers. These strategic hires are helping us build meaningful momentum and deepen our presence in some of the nation's most dynamic and attractive banking markets," stated William I. Foster III, President and Chief Executive Officer.

Quarterly Net Interest Income:

Net interest income was $185.12 million in second quarter 2026 compared to $137.21 million for the quarter ended June 30, 2025, driven by a combination of volume increases and improvement in rates.
Average interest-earning assets totaled $20.19 billion at June 30, 2026, compared to $19.61 billion in the linked quarter, an increase of 2.94%.
On an average basis, loans held for investment, with a yield of 5.69%, represented 75.50% of earning assets at June 30, 2026 compared to 5.67% and 76.65% in the linked quarter. Average loans held for investment had a yield of 5.56% and represented 75.52% of earning assets at June 30, 2025.
The cost of interest-bearing deposits was 2.24% for the quarter ended June 30, 2026, compared to 2.33% in the linked quarter and 2.61% in second quarter 2025. Interest expense on deposits increased $3.33 million, or 4.88%, from the prior year quarter as higher volume outpaced decreases in rate.
Our total cost of deposits decreased to 1.55% from 1.63% for the linked quarter and 1.80% for the quarter ended June 30, 2025 due to lower interest-bearing deposit rates.
Average interest-bearing liabilities totaled $13.26 billion, an increase of $105.95 million, or 0.81%, from the linked quarter. Total borrowings decreased $62.24 million compared to the linked quarter, due to repayment of a portion of debt assumed in the Dogwood State Bank ("Dogwood") acquisition.

Quarterly Provision for Credit Losses:

The quarterly provision for credit losses was $625 thousand compared to $6.41 million in the prior year quarter and $344 thousand in the linked quarter.
The allowance for credit losses on loans increased $651 thousand in second quarter 2026, compared to the linked quarter.
Net loan charge-offs were $5.76 million in the quarter, $1.69 million in the linked quarter, and $19 thousand in the prior year quarter. The increase in charge-offs was driven primarily by acquired indirect and SBA loans.
The ratio of net charge-offs to average loans on an annualized basis was 0.15% in second quarter 2026, 0.05% in the linked quarter, and less than 0.01% in second quarter 2025.
The allowance for credit losses on loans represented 1.32% of total loans at June 30, 2026, compared to 1.31% at March 31, 2026, and 1.09% at June 30, 2025. Our June 30, 2026 allowance for credit losses is further broken down into community banking which represented 1.20% of total loans and government guaranteed lending which represented 0.12% of total loans.
The allowance for credit losses on loans was 6.16 times nonperforming loans compared to 16.81 times at June 30, 2025 and 6.08 times at March 31, 2026.

Quarterly Noninterest Income:

Total noninterest income was $259.15 million compared to $72.88 million in 2025, an increase of $186.27 million, or 255.58%.
The gain on sale of our Resort Property Management segment included in noninterest income was $198.55 million. As a result of the sale, there was no operating income to report from this segment in second quarter 2026 compared to second quarter 2025 income of $18.21 million.
Government guaranteed lending income, net was $1.99 million in second quarter 2026 and represented a new noninterest income source in 2026 related to the acquisition of Dogwood.
Residential mortgage banking income was $12.54 million compared to $13.56 million in second quarter 2025 driven by margin compression. Loan volume increased to $734.65 million in second quarter 2026 from $671.47 million in second quarter 2025. Residential purchase activity was 91.58% of production volume in second quarter 2026 compared to 92.37% in second quarter 2025.
Gross margins on residential mortgage sales were 2.97%, a decrease of 12 basis points from 3.09% in the linked quarter and 16 basis points from 3.13% in second quarter 2025.

Quarterly Noninterest Expense:

Total noninterest expense was $189.94 million compared to $150.67 million in 2025, an increase of $39.28 million, or 26.07%. This increase was primarily attributable to a special charitable foundation contribution and growth in salaries and employee benefits.
An increase in banking personnel related to the Dogwood and Old Point Financial Corporation acquisitions represented $8.62 million of the $10.37 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 $22.62 billion for the quarter ended June 30, 2026, a $258.25 million increase compared to $22.36 billion at March 31, 2026.
Loans held for investment decreased $91.49 million, or 0.60%, compared to the linked quarter, but increased $218 million in our Carolina markets.
Mortgage loans held for sale increased $36.86 million, or 15.44%, compared to prior year and $103.87 million, or 60.48%, compared to the linked quarter, driven by higher production volume.
Government guaranteed loans held for sale increased $28.42 million over the linked quarter. This loan activity was included in the acquisition of Dogwood and is new to TowneBank in 2026.
Total deposits increased $233.17 million, or 1.26%, compared to the linked quarter, driven by demand deposit growth.
Noninterest-bearing deposits increased $245.55 million, or 4.39%, compared to the linked quarter.
The Company repaid a portion of acquired FHLB borrowings in the quarter, contributing to a $62.24 million, or 12.15%, decrease in borrowings compared to the linked quarter.

Investment Securities:

Total investment securities were $3.10 billion compared to $3.03 billion at March 31, 2026 and $2.78 billion at June 30, 2025. The weighted average duration of the portfolio at June 30, 2026 was 3.6 years. The carrying value of the available-for-sale debt securities portfolio included net unrealized losses of $85.14 million at June 30, 2026, compared to $81.40 million at March 31, 2026 and $113.14 million at June 30, 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 $15.17 billion at June 30, 2026 and $15.26 billion at March 31, 2026.
Nonperforming assets, which consists of nonperforming loans, foreclosed property, and former bank premises, were $48.31 million, or 0.21% of total assets, compared to $51.11 million, or 0.23%, at the linked quarter end, and $9.29 million, or 0.05%, at June 30, 2025. Former bank premises of $10.57 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 June 30, 2026, and in the linked quarter, compared to 0.06% at June 30, 2025. The increase over prior year was primarily driven by loans acquired in the Dogwood transaction.
Foreclosed property and former bank premises totaled $15.88 million at June 30, 2026, and consisted of $505 thousand in other real estate owned, $1.32 million in repossessed autos, and $14.06 million in acquisition-related former bank premises. 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.

Deposits and Borrowings:

Total deposits were $18.71 billion compared to $18.48 billion at March 31, 2026, an increase of $233.17 million, or 5.06% on an annualized basis from the linked quarter.
The ratio of period end loans held for investment to deposits was 81.06% compared to 82.58% at March 31, 2026, and 80.63% at June 30, 2025.
Noninterest-bearing deposits were 31.22% of total deposits at June 30, 2026 compared to 30.29% at March 31, 2026 and 31.02% at June 30, 2025. Noninterest-bearing deposits increased $245.55 million, or 4.39%, compared to the linked quarter.
Total borrowings were $450.24 million compared to $512.48 million at March 31, 2026, a decrease of $62.24 million, or 12.15%.

Capital:

Book value per common share was $32.40 compared to $31.31 at March 31, 2026 and $29.41 at June 30, 2025.
Tangible book value per common share (non-GAAP) was $22.60 compared to $21.49 at March 31, 2026 and $21.80 at June 30, 2025.

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 $22.62 billion as of June 30, 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, 757-638-6780

William 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
		June 30,			March 31,			December 31,			September 30,			June 30,
		2026			2026			2025			2025			2025
Income and Performance Ratios:
	Total revenue	$	444,266		$	246,447		$	219,943		$	222,584		$	210,093
	Net income		193,618			41,101			40,850			44,612			41,319
	Net income available to common shareholders		193,186			40,993			40,630			44,295			40,887
	Net income per common share - diluted		2.09			0.45			0.51			0.58			0.54
	Book value per common share		32.40			31.31			30.67			30.27			29.41
	Book value per common share - tangible^(non-GAAP)		22.60			21.49			21.93			21.49			21.80
	Return on average assets		3.45	%		0.76	%		0.82	%		0.94	%		0.91	%
	Return on average assets - tangible^(non-GAAP)		3.68	%		0.89	%		0.94	%		1.05	%		1.01	%
	Return on average equity		25.66	%		5.84	%		6.67	%		7.72	%		7.52	%
	Return on average equity - tangible^(non-GAAP)		37.63	%		9.55	%		10.32	%		11.39	%		10.94	%
	Return on average common equity		25.72	%		5.85	%		6.69	%		7.75	%		7.54	%
	Return on average common equity - tangible^(non-GAAP)		37.76	%		9.58	%		10.36	%		11.45	%		10.99	%
	Noninterest income as a percentage of total revenue		58.33	%		29.83	%		27.73	%		33.98	%		34.69	%
Regulatory Capital Ratios (1):
	Common equity tier 1		12.16	%		11.43	%		11.34	%		11.18	%		11.77	%
	Tier 1		12.20	%		11.47	%		11.39	%		11.23	%		11.82	%
	Total		14.58	%		13.87	%		14.14	%		13.98	%		14.49	%
	Tier 1 leverage ratio		10.00	%		9.75	%		9.36	%		9.84	%		9.93	%
Asset Quality:
	Allowance for credit losses on loans to nonperforming loans		6.16	x		6.08	x		12.57	x		19.38	x		16.81	x
	Allowance for credit losses on loans to period end loans		1.32	%		1.31	%		1.10	%		1.11	%		1.09	%
	Nonperforming loans to period end loans		0.21	%		0.21	%		0.09	%		0.06	%		0.06	%
	Nonperforming assets to period end assets		0.21	%		0.23	%		0.07	%		0.05	%		0.05	%
	Net charge-offs (recoveries) to average loans (annualized)		0.15	%		0.05	%		0.06	%		0.01	%		—	%
	Net charge-offs (recoveries)	$	5,756		$	1,690		$	1,948		$	255		$	19

	Nonperforming loans	$	32,430		$	32,751		$	11,726		$	7,698		$	7,982
	Former bank premises		14,061			16,323			879			885			—
	Foreclosed property		1,823			2,037			1,754			1,798			1,306
	Total nonperforming assets	$	48,314		$	51,111		$	14,359		$	10,381		$	9,288
	Loans past due 90 days and still accruing interest	$	1,095		$	2,487		$	890		$	1,863		$	210
	Allowance for credit losses on loans	$	199,918		$	199,267		$	147,343		$	149,175		$	134,187
Mortgage Banking:
	Loans originated, mortgage	$	597,622		$	469,323		$	504,732		$	491,921		$	494,108
	Loans originated, joint venture		137,028			106,027			118,597			144,440			177,359
	Total loans originated	$	734,651		$	575,350		$	623,329		$	636,361		$	671,467
	Number of loans originated		1,827			1,423			1,551			1,679			1,750
	Number of originators		168			162			161			169			166
	Purchase %		91.58	%		77.57	%		82.23	%		91.84	%		92.37	%
	Loans sold	$	597,947		$	527,428		$	652,853		$	657,822		$	596,009
	Rate lock asset	$	1,831		$	2,003		$	1,145		$	2,213		$	2,186
	Gross realized gain on sales and fees as a % of loans originated		2.97	%		3.09	%		3.19	%		3.32	%		3.13	%
Other Ratios:
	Net interest margin		3.68	%		3.58	%		3.56	%		3.48	%		3.38	%
	Net interest margin-fully tax-equivalent^(non-GAAP)		3.70	%		3.60	%		3.58	%		3.50	%		3.40	%
	Average earning assets/total average assets		89.78	%		89.60	%		89.96	%		90.03	%		90.23	%
	Average loans/average deposits		82.40	%		83.22	%		80.57	%		80.92	%		81.09	%
	Average noninterest deposits/total average deposits		30.78	%		30.24	%		31.28	%		31.30	%		30.88	%
	Period end equity/period end total assets		13.27	%		12.96	%		12.34	%		12.18	%		12.19	%
	Efficiency ratio^(non-GAAP)		74.91	%		76.96	%		73.37	%		67.08	%		69.82	%
	(1) Current reporting period regulatory capital ratios are preliminary.

TOWNEBANK
Selected Data (unaudited)
(dollars in thousands)

Investment Securities										% Change
	Q2			Q2			Q1			Q2 26 vs.		Q2 26 vs.
*Available-for-sale securities, at fair value*	2026			2025			2026			Q2 25		Q1 26
U.S. agency securities	$	402,738		$	345,808		$	386,157		16.46	%	4.29	%
U.S. Treasury notes		176,393			78,746			83,396		124.00	%	111.51	%
Municipal securities		540,924			438,490			535,652		23.36	%	0.98	%
Trust preferred and other corporate securities		164,040			115,126			161,453		42.49	%	1.60	%
Mortgage-backed securities issued by GSEs and GNMA		1,657,895			1,577,325			1,697,124		5.11	%	(2.31	)%
Allowance for credit losses		(1,028	)		(1,520	)		(1,355	)	(32.37	)%	(24.13	)%
Total	$	2,940,962		$	2,553,975		$	2,862,427		15.15	%	2.74	%
*Gross unrealized gains (losses) reflected in financial statements*
Total gross unrealized gains	$	9,072		$	6,048		$	9,894		50.00	%	(8.31	)%
Total gross unrealized losses		(94,212	)		(119,186	)		(91,293	)	(20.95	)%	3.20	%
Net unrealized gains (losses) and other adjustments on AFS securities	$	(85,140	)	$	(113,138	)	$	(81,399	)	(24.75	)%	4.60	%
*Held-to-maturity securities, at amortized cost*
U.S. agency securities	$	18,403		$	92,973		$	18,339		(80.21	)%	0.35	%
U.S. Treasury notes		95,317			96,250			95,551		(0.97	)%	(0.24	)%
Municipal securities		5,515			5,414			5,490		1.87	%	0.46	%
Trust preferred corporate securities		2,041			2,094			2,054		(2.53	)%	(0.63	)%
Mortgage-backed securities issued by GSEs		5,057			5,201			5,093		(2.77	)%	(0.71	)%
Allowance for credit losses		(32	)		(67	)		(33	)	(52.24	)%	(3.03	)%
Total	$	126,301		$	201,865		$	126,494		(37.43	)%	(0.15	)%

Total gross unrealized gains	$	195		$	214		$	196		(8.88	)%	(0.51	)%
Total gross unrealized losses		(1,931	)		(5,148	)		(2,314	)	(62.49	)%	(16.55	)%
Net unrealized gains (losses) in HTM securities	$	(1,736	)	$	(4,934	)	$	(2,118	)	(64.82	)%	(18.04	)%
Total unrealized gains (losses) on AFS and HTM securities	$	(86,876	)	$	(118,072	)	$	(83,517	)	(26.42	)%	4.02	%

										% Change
Loans Held For Investment	Q2			Q2			Q1			Q2 26 vs.		Q2 26 vs.
Community Banking:		2026			2025			2026		Q2 25		Q1 26
CRE - construction and development	$	1,308,080		$	1,072,625		$	1,450,284		21.95	%	(9.81	)%
CRE - owner occupied		2,401,402			1,815,900			2,359,542		32.24	%	1.77	%
CRE - non-owner occupied		4,317,091			3,557,175			4,284,890		21.36	%	0.75	%
CRE - multifamily		865,154			887,083			894,653		(2.47	)%	(3.30	)%
Residential 1-4 family		2,326,019			1,997,395			2,334,199		16.45	%	(0.35	)%
HELOC		682,941			480,610			674,293		42.10	%	1.28	%
Commercial and industrial business (C&I)		1,615,241			1,370,564			1,619,980		17.85	%	(0.29	)%
Government		524,444			510,902			499,769		2.65	%	4.94	%
Indirect		690,321			579,041			693,811		19.22	%	(0.50	)%
Consumer loans and other		222,970			88,378			219,057		152.29	%	1.79	%
Total Community Banking	$	14,953,663		$	12,359,673		$	15,030,478		20.99	%	(0.51	)%
Government Guaranteed Lending:
Real estate - construction and development		12,846			—			28,840		N/M		(55.46	)%
Commercial real estate - owner occupied		94,943			—			88,072		N/M		7.80	%
Commercial and industrial business (C&I)		108,216			—			113,770		N/M		(4.88	)%
Consumer loans and other		7			—			—		N/M		N/M
Total Government Guaranteed Lending	$	216,012		$	—		$	230,682		N/M		(6.36	)%
Total Loans Held for Investment	$	15,169,675		$	12,359,673		$	15,261,160		22.74	%	(0.60	)%

TOWNEBANK

Selected Data (unaudited)

(dollars in thousands)

% Change

Deposits

Q2 26 vs.

2026

2025

2026

Q2 25

Q1 26

Noninterest-bearing demand deposits

5,842,944

4,754,340