TowneBank : Investor Presentation First Quarter 2026

Published: 2026-05-05 10:03:12 ET TOWN

Published on 05/05/2026 at 10:03 am EDT

Investor Presentation

1st Quarter 2026

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

[email protected]

TowneBank at a Glance

Ranked on

Consistent Focus on

Earnings and GrowtTh

Earnings Growth

CAGR FY00 - FY25

Deposit Market SThare

in Hampton Roads1

Best Banks List2

8 Years in a Row

Total Assets

$22.4B

Total Loans

$15.3B

Total Deposits

$18.5B

Net Promoter Score3

Core ROAA

Core ROTCE

NIM (FTE)

NIB Deposits / Total Deposits

10 Year Total Shareholder Return4

119%

Source: FDIC Summary of Deposits for the VA Beach-Norfolk-Newport News, VA MSA, data as of June 30, 2025

Benchmark question: On a scale from 0-10, how likely are you to recommend TowneBank to a friend or colleague?; Net Promoter = % Promoters minus % Detractors (83.10% - 7.54% = 75.56%) (4 )Total Return as of 3/31/2026; Source: S&P Global, data collected 4/16/2026

Note: Financial results for the quarter ending March 31, 2026

Introduction

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

Trust Services

Insurance

Mortgage

(1) Source: S&P Global, Ownership Summary data as of 4/24/2026

Superior Shareholder Value

Super Community Bank Model

Local Decision Making

Extraordinary Member Experiences

Invested Insider Ownership (6.3%)1

Commitment to Community Service & Engagement

Culture of Caring

Embracing Diverse Talents, Perspectives & Experiences

Total Assets [Dollars in billions]

Disciplined Acquirer and Experienced Integrator

$22.4

TOTAL ASSETS $22.4 B

$9.7 B

Acquired

$12.7 B

Organic

$2.5 $3.1 $3.6

$3.9 $4.1 $4.4 $4.7 $5.0

$6.3

$8.0 $8.5

$11.2 $11.9

$14.6

$16.4

$15.8

$16.8 $17.2

$19.7

$1.4 $1.8 $2.2

$272 million Total Assets Newport News-Hampton, VA

Harbor Bank

$173 million Total Assets NE North Carolina (Outer Banks)

Bank of Currituck

Franklin Financial Corp.

$1.1 billion Total Assets Richmond,

VA MSA

Monarch Financial Holdings, Inc.

$1.2 billion Total Assets Hampton Roads, VA MSA

Paragon Commercial Corp.

$1.8 billion Total Assets Charlotte & Raleigh, NC MSA

Farmers Bank

$603 million Total Assets Hampton Roads, VA MSA

Village Bank & Old Point Financial

$2.4 billion Total Assets North Carolina and South Carolina

Dogwood State Bank

Corp.

$746 million Total Assets Richmond, VA MSA

$1.4 billion Total Assets

Hampton Roads, VA MSA

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, Q4-25 data retrieved 1/19/2026

Balance Sheet: Consistency & Stability

Total Assets [Dollars in billions]

Total Loans [Dollars in billions]

Total Deposits [Dollars in billions]

$22.4

$18.5

$19.7

$16.8

$17.2

$15.8

$16.5

$14.4

$13.3

$13.9

$15.3

$13.3

$10.8

$11.3 $11.5

FY2022 FY2023 FY2024 FY2025 Q1-FY26

(1) SunTrust / BB&T merger - 12/6/2019

Hampton Roads Market Share

1999 - 2025

Bank

June 30, 1999

June 30, 2025

Wells Fargo

29.58%

15.99%

Truist1

29.92%

17.09%

Bank of America

15.54%

13.61%

TowneBank & Old Point

0.75%+3.33%

35.76%

Our Bank Reach

TowneBank Core Dogwood TowneBank Consolidated

Loans

Residential

1-4 Family

21%

Commercial Real Estate 49%

Deposits

Time Deposits 16%

Money Market & Savings 40%

Q1-FY26

$13.3B

Q1-FY26

$16.7B

Commercial

/ Industrial 11%

Government 4%

Indirect 5%

Consumer/ Other

Construction/ Development 9%

Noninterest Bearing

31%

IB Demand

13%

Residential 1-4 Family

13%

Commercial Real Estate 48%

Time Deposits 20%

Money Market & Savings 45%

Q1-FY26

$2.0B

Q1-FY26

$1.8B

Commercial

/ Industrial 11%

Consumer/ Other

Government Guaranteed 11%

Construction/ Development 12%

Noninterest Bearing 26%

IB Demand

Residential 1-4 Family

20%

Commercial Real Estate 49%

Time Deposits 17%

Money Market & Savings 40%

Q1-FY26

$15.3B

Q1-FY26

$18.5B

Commercial/ Industrial

11%

Government

Indirect

Consumer

/ Other 1%

Government Guaranteed 1%

Construction/ Development 10%

Noninterest Bearing 30%

IB Demand 13%

Top 5 States

Net Domestic Migration1

1. Florida

872,722

2. Texas

747,730

3. North Carolina

392,010

4. South Carolina

314,953

5. Arizona

252,654

The Carolinas Lead Population Migration: I-85 Corridor Prominence

Between 1990 and 2030, South Carolina counties like Greenville, Spartanburg, and Anderson are projected to grow by 30-40%

The I-85 corridor is evolving into a 22-million-person megaregion,

driven by industrial development and urban sprawl

Home to prominent industries like Automotive, Distribution, Healthcare, and Technology, creating employment opportunities for thousands

NC & SC

+706,963

Plethora of employers in the area, including Toyota, Chewy, Eli Lilly, and Oshkosh Defense

The I-85 corridor is likened to the Transcontinental Railroad for the South, driving commerce and connectivity

TOWN (74)

DSBX2 (16)

It connects major metros like Richmond, Charlotte, Atlanta, and Montgomery, making it a magnet for regional HQs and industrial investment

U.S. Net Domestic Migration from April 1, 2020 to July 1, 2024

DSBX branches in the Carolinas

Source: S&P Capital IQ Pro; Charlotte Regional Business Alliance; Clemson Strom Thurmond Institute; CoStar; U.S. Census Bureau

Awards & Recognition

5 Star Rating One of the Strongest Financial Institutions in the Nation

2025

Platinum and Bronze

Presented to Top Producing Loan Officers TowneBank Mortgage 2025

Ranked Among the Best Banks in the Nation

2025

Top 100 Brokers of US Business

Towne Insurance1 2025

Outstanding CRA Rating Compliance with Community Reinvestment Act (CRA) regulations, six consecutive Outstanding Ratings since 2007

Coalition Greenwich Small Business Banking Among 500+ financial institutions, only 22 are nationally rated as excellent by their business clients 2026

Top 4 in Assets Under Management

Raymond James Financial Institution Division

Towne Wealth Management2 2026

A Top 20 Affiliate Berkshire Elite Circle Award Berkshire Hathaway |

RW Towne Realty 2026

Best Bank to Work For

Ranked Nationally

as Best Bank to Work For 2025

Best of the Best Coastal Virginia Businesses excelling in their industries

2025

America's Best Workplaces Best Companies Group

2026

1 Insurance products offered through Towne Insurance, a subsidiary of TowneBank, are Not bank deposits or obligations, Not FDIC-Insured, and are Not guaranteed by TowneBank.

2. Top Assets Under Management (AUM) Raymond James FID is an internal Raymond James honor. This ranking is based on prior AUM. Re-qualification is required annually. This ranking is not based in anyway on the individual's abilities in regard to providing investment advice or management. This ranking is not indicative of advisor's future performance, is not an endorsement, and may not be representative of individual client's experience. No fee is paid in exchange for this award/rating.

Securities offered through Raymond James Financial Services. Inc., member FINRA/SIPC, and are: NOT deposits of TowneBank, and are subject to risk and may lose value. Towne Wealth Management, TowneBank and its affiliates are not registered broker/dealers and are independent of Raymond James Financial Services, Inc. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc.

Headquarters: 5806 Harbour View Boulevard, Suite 202, Suffolk, VA 23435 | 757-638-6850.

1st Quarter 2026 Financial Results

Performance Highlights

Q1-FY26

Q4-FY25 2

Q/Q Change

Q1-FY25 2

Y/Y Change

Total Revenue

$246.45 million

$219.94 million

12%

$183.10 million

35%

Provision for Credit Losses

$0.34 million

-$0.17 million

303%

$2.42 million

(86%)

Net Income Attributable to TowneBank

$40.99 million

$40.63 million

$43.71 million

(6%)

Earnings Per Share-Diluted

$0.45

$0.51

(12%)

$0.58

(22%)

Return on Avg Assets

0.76%

0.82%

-6 bps

1.03%

-27 bps

Return on Avg Tangible Common Equity1

9.58%

10.36%

-78 bps

11.50%

-192 bps

Net Interest Margin (TE)1

3.60%

3.58%

+2 bps

3.17%

+43 bps

Assets

$22.36 billion

$19.69 billion

14%

$17.50 billion

28%

Loans

$15.26 billion

$13.34 billion

14%

$11.65 billion

31%

Deposits

$18.48 billion

$16.51 billion

12%

$14.61 billion

27%

Loans / Deposits

82.58%

80.78%

+180 bps

79.77%

+281 bps

Noninterest Bearing Deposits / Deposits

30.29%

30.73%

-44 bps

29.53%

+76 bps

Nonperforming Assets / Assets

0.23%

0.07%

+16 bps

0.04%

+19 bps

Book Value per Share

$31.31

$30.67

$29.00

Tangible Book Value per Share1

$21.49

$21.93

(2%)

$22.17

(3%)

Tangible Common Equity to Tangible Assets

9.25%

9.11%

+14 bps

9.84%

-59 bps

Total Risk Based Capital Ratio

13.87%

14.14%

-27 bps

15.65%

-178 bps

Non-GAAP financial measure - see non-GAAP reconciliations

Prior periods adjusted to reflect adoption of new revenue recognition standard for Towne Vacations property management income. This revision did not have a material impact on annual earnings

Income Statement Summary

Dollars in millions, except per share data

QTD

Q1-FY26

Q4-FY25 2

Q/Q Change

Q1-FY25 2

Y/Y Change

Interest Income

$ 250.40

$ 230.67

$ 189.61

32%

Interest Expense

77.46

71.71

69.14

12%

Net Interest Income

172.94

158.96

120.48

44%

Provision for Credit Losses

0.34

(0.17)

303%

2.42

(86%)

Net Interest Income after Provision for Credit Losses

172.60

159.13

118.06

46%

Noninterest Income

73.51

60.98

21%

62.62

17%

Noninterest Expense

195.89

166.62

18%

130.54

50%

Minority Interest in Unconsolidated Subs

0.11

0.22

(51%)

0.30

(63%)

Income Before Taxes

50.11

53.27

(6%)

49.84

Provision for Income Tax Expense

9.12

12.64

(28%)

6.13

49%

Net Income Attributable to TowneBank

Earnings Per Share-Diluted

$ 40.99

$ 0.45

$ 40.63

$ 0.51

(12%)

$ 43.71

$ 0.58

(6%)

(22%)

Core Net Income1

One-time Adjustments After Taxes

$ 25.74

$ 14.66

75.6%

$ 0.39

Core Net Income

66.73

55.29

20.7%

44.10

51.3%

Core Earnings Per Share-Diluted

$ 0.74

$ 0.70

5.7%

$ 0.58

27.6%

Non-GAAP financial measure - see non-GAAP reconciliations

Prior periods adjusted to reflect adoption of new revenue recognition standard for Towne Vacations property management income

Financial Performance Trends

Core Net Income1 [Dollars in millions]

Core EPS1

$231.6

$3.02

$66.7

$44.1

$160.4

$163.2

$2.15

$2.17

$0.58 $0.74

FY2023 FY2024 FY2025 Q1-FY25 Q1-FY26 FY2023 FY2024 FY2025 Q1-FY25 Q1-FY26

Core ROAA1

Core ROATCE1

0.96%

1.26%

1.24%

14.82%

14.95%

11.99%

11.23%

11.60%

1.04%

FY2023 FY2024 FY2025 Q1-FY25 Q1-FY26

Non-GAAP financial measure - see non-GAAP reconciliations

FY2023 FY2024 FY2025 Q1-FY25 Q1-FY26

Net Interest Income

Avg. Earning Assets & Yield (TE)1 [Dollars in millions]

Net Interest Income & NIM (TE)1 [Dollars in millions]

$15,546

4.97%

$160.1

$174.1

$138.3

$148.0

$121.5

3.40%

3.50%

3.58%

3.60%

3.17%

$19,612

$16,292

$16,768

$17,730

5.14%

5.19%

5.20%

Q1-FY25 Q2-FY25 Q3-FY25 Q4-FY25 Q1-FY26 Q1-FY25 Q2-FY25 Q3-FY25 Q4-FY25 Q1-FY26

Avg. Interest Bearing Liabilities & Cost [Dollars in millions]

Interest Bearing Deposit Costs

$13,157

$10,422

$10,796

$11,067

$11,753

2.69%

2.62%

2.56%

2.42%

2.39%

2.69%

2.61%

2.55%

2.40%

2.33%

-9.4%

-3.0%

-2.3%

-5.9%

-2.9%

Q1-FY25 Q2-FY25 Q3-FY25 Q4-FY25 Q1-FY26

Non-GAAP financial measures - see non-GAAP reconciliations

Q1-FY25 Q2-FY25 Q3-FY25 Q4-FY25 Q1-FY26

NIM & Net Interest Income Sensitivity

Net Interest Income & NIM (TE)1

Net Interest Income Sensitivity2

Dollars in millions

Amount

NIM (%)

Q4-FY25

$ 160.1

3.58%

Loans HFI

21.0

0.04%

Recurring Accretion

(1.4)

-0.03%

Loans HFS

(0.7)

0.00%

Investments & Cash

0.8

-0.03%

Earning Assets Mix

0.03%

Deposits

(3.5)

0.05%

Borrowings

(2.2)

-0.05%

Sub Debt

0.0

0.00%

Interest Bearing Funding Mix

0.02%

Other

0.0

-0.01%

Q1-FY26

$ 174.1

3.60%

4.04%

2.13%

-3.35%

-5.86%

-200 bp -100 bp Base +100 bp +200 bp

Comments

Continuation of recent trend to rising asset sensitivity

Forecast did not rely on rate cuts

NII growth from NIM expansion, repricing fixed rate maturities

and closed acquisitions

Reflects updated purchase accounting adjustments for Dogwood acquisition

Non-GAAP financial measure - see non-GAAP reconciliations

The interest sensitivity chart is a one-year result on net interest income of an instantaneous and permanent rate shock. The results include assumptions about deposit rate changes that may or may not occur.

Disclaimer

TowneBank published this content on May 04, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 05, 2026 at 14:02 UTC.