Detailed financial statements for TowneBank (TOWN): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
TowneBank functions as a comprehensive financial institution, delivering a wide array of retail and commercial banking services to individuals, businesses, and professionals. Its operations are structured across three primary divisions: Banking, Realty, and Insurance. Clients can establish diverse deposit accounts, such as checking accounts, standard savings, high-yield savings, certificates of deposit (CDs), and individual retirement accounts.
Analysis Summary
TowneBank reported revenue of $725.3M in the most recent fiscal year, growing at a 5-year CAGR of 1.8%. Net income reached $169.5M, with a 3.1% 5-year CAGR.
Trailing-twelve-month margins: gross margin 77.7%, operating margin 43.9%, net margin 34.3%. Free cash flow grew at 20.9% CAGR over 5 years.
At $36.56 (closing price, November 3, 2026), TOWN trades at a P/E of 9.30 and an ROE of 12.42%. Market capitalisation stands at $3.4B.
Balance sheet quality for TOWN: debt-to-equity ratio of 0.12, current ratio of 5.02 over the last 12 months, net debt of $117.6M at the end of the last fiscal year. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $211.7M represents 125% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $373.2M | $448.4M | $532.0M | $563.2M | $662.2M | $679.0M | $686.4M | $695.1M | $692.5M | $725.3M |
| Cost of Revenue | $5.4M | $5.4M | $8.5M | $9.4M | $67.2M | $24.3M | $8.6M | $18.7M | $331.4M | $23.9M |
| Gross Profit | $367.8M | $443.0M | $523.5M | $553.9M | $595.1M | $695.8M | $677.8M | $676.4M | $692.5M | $701.3M |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Selling, General & Admin | $163.5M | $192.3M | $230.4M | $248.3M | $253.4M | $266.9M | $279.9M | $305.2M | $321.5M | $377.7M |
| Operating Expenses | $266.9M | $295.4M | $351.5M | $377.6M | $393.7M | $415.9M | $440.7M | $490.2M | $502.7M | $491.1M |
| Operating Income | $100.9M | $147.6M | $172.0M | $176.3M | $201.3M | $279.8M | $237.1M | $186.2M | $190.4M | $210.2M |
| EBITDA | $121.5M | $172.1M | $200.7M | $205.6M | $230.4M | $308.6M | $265.7M | $220.4M | $225.5M | $250.4M |
| Interest Expense | $35.7M | $44.0M | $80.8M | $109.5M | $80.0M | $41.1M | $56.6M | $247.5M | $331.9M | $282.7M |
| Pre-tax Income | $100.9M | $147.6M | $172.0M | $176.3M | $201.3M | $279.8M | $237.1M | $186.2M | $190.4M | $210.2M |
| Income Tax | $28.7M | $54.8M | $34.2M | $32.6M | $31.9M | $54.8M | $46.6M | $31.1M | $27.6M | $39.4M |
| Net Income | $67.2M | $87.7M | $133.8M | $138.8M | $145.5M | $215.4M | $189.0M | $153.7M | $161.8M | $169.5M |
| EPS | $1.18 | $1.41 | $1.88 | $1.93 | $2.01 | $2.97 | $2.60 | $2.06 | $2.16 | $2.22 |
| EPS (Diluted) | $1.18 | $1.41 | $1.88 | $1.92 | $2.01 | $2.97 | $2.60 | $2.06 | $2.15 | $2.21 |
| Shares Outstanding (Diluted) | 56.8 M | 62.4 M | 71.3 M | 72.2 M | 72.3 M | 72.6 M | 72.6 M | 74.7 M | 75.2 M | 76.8 M |
Income Statement (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Revenue | $183.4M | $183.1M | $421.8M | $251.5M |
| Gross Profit | $183.6M | $182.7M | $421.2M | $252.7M |
| Operating Income | $53.5M | $50.2M | $253.7M | $99.6M |
| EBITDA | $65.1M | $63.4M | $253.7M | $99.6M |
| Net Income | $40.6M | $41.0M | $193.2M | $81.8M |
| EPS | $0.51 | $0.45 | $2.10 | $0.89 |
| EPS (Diluted) | $0.51 | $0.45 | $2.09 | $0.88 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $136.5M | $521.2M | $686.7M | $442.6M | $1.86B | $3.30B | $1.15B | $1.13B | $1.34B | $253.5M |
| Short-term Investments | $813.0M | $867.7M | $1.10B | $1.44B | $1.37B | $1.81B | $1.84B | $2.13B | $62.3M | 0 |
| Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Assets | $949.5M | $1.39B | $1.78B | $1.88B | $3.23B | $5.10B | $2.99B | $3.26B | $1.40B | $1.35B |
| Property, Plant & Equipment | $198.6M | $194.9M | $211.8M | $231.8M | $260.2M | $270.8M | $304.8M | $337.6M | $368.9M | $431.0M |
| Goodwill | $264.9M | $270.2M | $433.7M | $446.8M | $452.3M | $457.2M | $458.5M | $456.3M | $457.6M | $594.1M |
| Intangible Assets | $37.9M | $38.6M | $58.8M | $54.4M | $45.5M | $50.4M | $43.2M | $64.6M | $60.2M | $96.5M |
| Total Assets | $7.97B | $8.52B | $11.16B | $11.95B | $14.63B | $16.36B | $15.85B | $16.84B | $17.25B | $19.69B |
| Accounts Payable | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Short-term Debt | $32.5M | $24.9M | $47.2M | $52.4M | $67.8M | $76.8M | $40.9M | $32.8M | $33.7M | $34.8M |
| Total Current Liabilities | $6.07B | $6.47B | $8.42B | $9.32B | $11.64B | $13.65B | $13.34B | $13.93B | $14.47B | $13.50B |
| Long-term Debt | $687.5M | $774.1M | $1.05B | $720.1M | $705.1M | $405.0M | $277.1M | $459.8M | $263.2M | $336.3M |
| Total Liabilities | $6.89B | $7.38B | $9.62B | $10.29B | $12.84B | $14.45B | $13.96B | $14.78B | $15.09B | $17.26B |
| Retained Earnings | $229.5M | $282.7M | $379.2M | $467.2M | $557.9M | $716.6M | $840.8M | $921.1M | $1.01B | $1.09B |
| Total Equity | $1.08B | $1.13B | $1.53B | $1.64B | $1.77B | $1.90B | $1.87B | $2.04B | $2.14B | $2.42B |
| Total Debt | $720.1M | $799.0M | $1.09B | $772.5M | $772.9M | $481.8M | $318.0M | $492.6M | $296.9M | $371.1M |
| Net Debt | -$229.5M | -$589.9M | -$687.7M | -$1.11B | -$2.46B | -$4.62B | -$2.68B | -$2.77B | -$1.10B | $117.6M |
| Working Capital | -$5.12B | -$5.09B | -$6.64B | -$7.44B | -$8.41B | -$8.55B | -$10.34B | -$10.67B | -$13.07B | -$12.15B |
Balance Sheet (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Cash & Equivalents | $253.5M | $95.5M | $158.8M | $118.2M |
| Total Assets | $19.69B | $22.36B | $22.62B | $22.18B |
| Total Liabilities | $17.26B | $19.40B | $19.62B | $19.20B |
| Total Equity | $2.42B | $2.95B | $2.99B | $3.11B |
| Total Debt | $371.1M | $512.5M | $450.2M | $358.7M |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $72.2M | $92.8M | $137.8M | $143.7M | $169.4M | $225.0M | $190.5M | $155.1M | $161.8M | $170.8M |
| Depreciation & Amortization | $20.6M | $24.5M | $28.7M | $29.4M | $29.1M | $28.8M | $28.7M | $34.2M | $35.1M | $40.2M |
| Stock-based Compensation | $2.2M | $2.7M | $2.9M | $5.3M | $5.5M | $5.6M | $5.2M | $7.0M | $7.9M | $9.7M |
| Change in Working Capital | $12.1M | $17.0M | $50.3M | $30.8M | $24.2M | $90.9M | -$90.0M | $6.5M | $2.6M | -$4.5M |
| Operating Cash Flow | $185.0M | $141.1M | $317.6M | $10.3M | $127.9M | $518.8M | $415.5M | $161.3M | $138.4M | $261.5M |
| Capital Expenditure | -$18.1M | -$13.4M | -$20.8M | -$36.7M | -$45.8M | -$31.2M | -$52.3M | -$44.1M | -$57.3M | -$49.8M |
| Acquisitions | $61.9M | -$11.5M | $61.1M | -$19.7M | $9.4M | -$26.1M | -$2.4M | $17.8M | -$10.1M | -$54.2M |
| Stock Repurchased | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -$30.5M | -$34.4M | -$44.9M | -$49.4M | -$52.2M | -$55.3M | -$62.8M | -$71.4M | -$75.0M | -$79.3M |
| Free Cash Flow | $167.0M | $127.6M | $296.8M | -$26.4M | $82.1M | $487.6M | $363.2M | $117.2M | $81.1M | $211.7M |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $52.8M | $117.4M | $40.4M | -$30.6M |
| Capital Expenditure | -$11.6M | -$15.1M | -$13.6M | -$8.0M |
| Free Cash Flow | $41.2M | $102.3M | $26.9M | -$38.6M |
| Dividends Paid | -$20.4M | -$21.3M | -$21.3M | -$89.4M |
| Stock-based Compensation | $2.4M | $2.5M | $2.9M | 0 |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +20.2% | +18.6% | +5.9% | +17.6% | +2.5% | +1.1% | +1.3% | -0.4% | +4.7% | |
| Net Income Growth (YoY) | +30.4% | +52.6% | +3.7% | +4.9% | +48.0% | -12.3% | -18.7% | +5.2% | +4.8% | |
| EPS Growth (YoY) | +19.5% | +33.3% | +2.7% | +4.1% | +47.8% | -12.5% | -20.8% | +4.9% | +2.8% | |
| Shares Change (YoY) | +9.8% | +14.3% | +1.3% | +0.2% | +0.3% | +0.0% | +2.9% | +0.8% | +2.0% | |
| FCF Growth (YoY) | -23.6% | +132.5% | -108.9% | +410.9% | +493.9% | -25.5% | -67.7% | -30.8% | +161.0% | |
| Gross Margin | 98.6% | 98.8% | 98.4% | 98.3% | 89.9% | 102.5% | 98.7% | 97.3% | 100.0% | 96.7% |
| Operating Margin | 27.0% | 32.9% | 32.3% | 31.3% | 30.4% | 41.2% | 34.5% | 26.8% | 27.5% | 29.0% |
| EBITDA Margin | 32.5% | 38.4% | 37.7% | 36.5% | 34.8% | 45.5% | 38.7% | 31.7% | 32.6% | 34.5% |
| Net Margin | 18.0% | 19.6% | 25.1% | 24.6% | 22.0% | 31.7% | 27.5% | 22.1% | 23.4% | 23.4% |
| FCF Margin | 44.7% | 28.5% | 55.8% | -4.7% | 12.4% | 71.8% | 52.9% | 16.9% | 11.7% | 29.2% |
| Effective Tax Rate | 28.4% | 37.1% | 19.9% | 18.5% | 15.8% | 19.6% | 19.7% | 16.7% | 14.5% | 18.8% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $2.94 | $2.05 | $4.16 | -$0.37 | $1.13 | $6.72 | $5.00 | $1.57 | $1.08 | $2.76 |
| Dividends Per Share | $0.54 | $0.55 | $0.63 | $0.68 | $0.72 | $0.76 | $0.86 | $0.96 | $1.00 | $1.03 |
| Shares Outstanding (Basic) | 56.8 M | 62.2 M | 71.1 M | 72.1 M | 72.3 M | 72.5 M | 72.6 M | 74.6 M | 74.9 M | 76.7 M |
What to look at in Banking companies
- Efficiency Ratio (<=55%) — Operating expenses / revenue. Top banks below 55%.
- ROA (>=1%) — How much they earn per dollar of assets. ROE misleads in banks due to leverage.
- ROTCE (>=12%) — Return on Tangible Common Equity. Strips goodwill and intangibles.
- Equity / Assets (Tier 1 proxy) (>=8%) — Capital ratio proxy. Regulatory Tier 1 is not in our data.
- P/B (1.0-1.5x) — Classic banking metric. <1x can be opportunity or distress.
- Sustainable dividend yield (>=2%, <8%) — EU banks pay 5-7% normally. >8% is distress signal.
Profitability
| Return on Equity | 12.42% |
| Return on Invested Capital | 1.61% |
| Return on Assets | 1.61% |
| Gross Margin | 77.75% |
| Operating Margin | 43.95% |
| Net Margin | 34.29% |
Financial Health
| Debt / Equity | 0.12 |
| Current Ratio | 5.02 |
| Piotroski F-Score | 5 |
| Altman Z-Score | -0.49 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 28.18 | 21.67 | 12.74 | 14.41 | 11.68 | 10.64 | 11.86 | 14.45 | 15.77 | 15.03 |
| P/B | 1.76 | 1.68 | 1.12 | 1.22 | 0.96 | 1.21 | 1.19 | 1.09 | 1.19 | 1.06 |
| P/S | 5.06 | 4.24 | 3.20 | 3.56 | 2.56 | 3.37 | 3.26 | 3.20 | 3.69 | 3.53 |
| Gross Margin | 89.9% | 90.0% | 85.4% | 82.3% | 80.2% | 96.6% | 91.2% | 71.8% | 67.6% | 69.6% |
| Operating Margin | 27.0% | 32.9% | 32.3% | 31.3% | 30.4% | 41.2% | 34.5% | 26.8% | 27.5% | 29.0% |
| Net Margin | 18.0% | 19.6% | 25.1% | 24.6% | 22.0% | 31.7% | 27.5% | 22.1% | 23.4% | 23.4% |
Related companies: OZK · WSBC · SBCF · SFNC · CVBF · TRMK · NBTB · CBU
Explore sector: Financial Services · Banks - Regional
More sections of TOWN: Overview · Valuation · Estimates · Technical · Ownership
Discover more: Weekly Radar: the S&P 500 through the Buffett and Lynch methods · Companies that pass the Buffett method · Companies that pass the Lynch method · Stocks that pass Graham's defensive investor test today · Investment Academy — learn to analyze stocks