TowneBank Hikes Q1 Revenue 34.6% to $246.45M with Dogwood Acquisition
TowneBank Q1 revenue record of $246.45M, up 34.6% year over year, driven by Dogwood acquisition adding $1.93B deposits and $1.95B loans. Core earnings rose to $66.73M ($0.74/share), though GAAP profit slipped to $40.99M ($0.45), with NIM up to 3.58% and deposits increasing 11.9%.
1. First Quarter Financial Results
TowneBank reported Q1 net income of $40.99M ($0.45 per diluted share) versus $43.71M ($0.58) in Q1 2025. Excluding merger-related adjustments, core earnings reached $66.73M ($0.74 per share), as total revenues jumped by $63.35M to $246.45M.
2. Dogwood State Bank Acquisition
In January 2026, TowneBank completed the Dogwood acquisition, adding $1.95B in loans, $190.08M in securities and $1.93B in deposits. The initial allowance for credit losses on acquired loans was $54.21M, split between community banking and government lending portfolios.
3. Balance Sheet Growth and Margins
Total deposits climbed to $18.48B, up 11.94% from Q4 2025, with noninterest-bearing deposits rising $524.24M. Loans held for investment increased to $15.26B, and net interest margin improved to 3.58% from 3.14% a year earlier.
4. Credit Quality and Allowances
Provision for credit losses was a $0.34M expense versus $2.42M expense in Q1 2025, while allowance for credit losses on loans rose to 1.31% of total loans. Net charge-offs remained low at 0.05% annualized, and allowance coverage of nonperforming loans was 6.08 times.