TowneBank earnings rose to $81.78 million in the third quarter of 2026 from $44.30 million a year earlier, as higher net interest income helped offset a decline in noninterest income. Diluted earnings per share increased to $0.88 from $0.58.

Key Takeaways

  • Net interest income rose to $196.21 million from $146.95 million a year earlier.
  • Core diluted earnings per share, a non-GAAP measure, edged up to $0.91 from $0.90.
  • Total deposits fell from June 30, although noninterest-bearing deposits increased.

TowneBank earnings and interest income

The bank reported total revenue of $257.89 million for the quarter ended September 30, up 15.86% from the third quarter of 2025. It said higher earning-asset volumes and improved yields contributed to the increase in net interest income.

The net interest margin rose to 3.89% from 3.48% a year earlier. The tax-equivalent margin, a non-GAAP measure, was 3.92%, including 20 basis points of purchase accounting accretion.

Excluding items affecting comparability, core earnings were $83.85 million, or $0.91 per diluted share, compared with $68.77 million, or $0.90 per diluted share, a year earlier. These non-GAAP figures provide an additional view of performance rather than a substitute for reported earnings.

Sale weighs on noninterest income

Noninterest income fell to $61.68 million from $75.63 million. TowneBank attributed the decline primarily to its second-quarter sale of the resort property management business, which reduced property management income by $20.45 million compared with the prior-year quarter.

The bank recorded a $1.18 million benefit from its provision for credit losses, compared with a $15.28 million expense a year earlier. Net loan charge-offs were $2.45 million, up from $255,000; TowneBank said the increase was primarily driven by indirect and acquired Small Business Administration loan portfolios.

Deposits and acquisition plans

Total deposits were $18.46 billion at September 30, down $254.56 million from June 30. Noninterest-bearing deposits rose $139.53 million over the same period, while loans held for investment fell to $15.10 billion.

TowneBank’s proposed acquisition of blueharbor bank was announced on October 6 at an estimated value of approximately $154 million. The deal remains subject to closing conditions, including regulatory and blueharbor shareholder approvals.

The bank expects net purchase accounting accretion income of $3.50 million for the remainder of 2026 and $11.61 million in 2027. Those figures are management expectations, not completed results.

Next milestone

The blueharbor transaction is expected to close in the first quarter of 2027, subject to the required approvals and other closing conditions.

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