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Compared to Estimates, TowneBank (TOWN) Q1 Earnings: A Look at Key Metrics

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TowneBank (TOWN - Free Report) reported $167.1 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 9.3%. EPS of $0.48 for the same period compares to $0.62 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $168.33 million, representing a surprise of -0.73%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.48.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how TowneBank performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net interest margin-fully tax equivalent: 2.8% versus 2.9% estimated by two analysts on average.
  • Average Earning assets: $15.27 billion versus $15.20 billion estimated by two analysts on average.
  • Net charge-offs to average loans: 0% versus 0% estimated by two analysts on average.
  • Efficiency Ratio: 75.2% versus the two-analyst average estimate of 71.9%.
  • Residential mortgage banking income, net: $10.48 million versus $8.64 million estimated by two analysts on average.
  • Insurance commissions and other title fees and income, net: $25.54 million versus the two-analyst average estimate of $24.33 million.
  • Credit card merchant fees, net: $1.55 million compared to the $1.62 million average estimate based on two analysts.
  • Service charges on deposit accounts: $3.06 million versus the two-analyst average estimate of $2.97 million.
  • Net interest income (tax-equivalent basis): $104.32 million versus the two-analyst average estimate of $108.48 million.
  • Other income: $4.57 million compared to the $5.73 million average estimate based on two analysts.
  • Total Noninterest Income: $63.88 million versus the two-analyst average estimate of $59.85 million.
  • Bank owned life insurance: $1.84 million versus $2.01 million estimated by two analysts on average.
View all Key Company Metrics for TowneBank here>>>

Shares of TowneBank have returned +2.7% over the past month versus the Zacks S&P 500 composite's -3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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