Page 1

TowneBank Reports Record First Quarter 2021 Earnings APRIL 29 , 2021 SUFFOLK , Va . , April 29 , 2021 ( GLOBE NEWSWIRE ) -- TowneBank ( the " Company " ) ( NASDAQ : TOWN ) today reported earnings for the quarter ended March 31 , 2021 of $ 69.0 million , or $ 0.95 per diluted share , compared to $ 26.38 million , or $ 0.36 per diluted share , for the quarter ended March 31 , 2020 . " Towne continued the strong earnings momentum from the latter half of last year fueled by continued strength in our fee - based businesses and solid growth in deposits and loans . Our deposit balances climbed to new record levels and our teams continue to assist those companies and individuals most impacted by the pandemic by delivering $ 429 million in new Paycheck Protection Program funding during the first quarter . Overall , we are off to a great start to the year , " said G. Robert Aston , Jr. , Executive Chairman . Highlights for First Quarter 2021 Compared to First Quarter 2020 : • Total revenues were $ 182.51 million , an increase of $ 44.81 million , or 32.54 % . • Pre - provision , pre - tax , net revenues ( non - GAAP ) were $ 81.55 million , an increase of $ 41.96 million , or 105.99 % . • Loans held for investment were $ 9.73 billion , an increase of $ 0.95 billion , or 10.82 % , from March 31 , 2020 , and $ 0.11 billion , or 1.10 % , from December 31 , 2020. In first quarter 2021 , the Company originated approximately $ 429.41 million of loans in round two of the Small Business Administration's Paycheck Protection Program ( " PPP " ) . The balance at March 31 , 2021 and December 31 , 2020 included $ 898.73 million and $ 855.89 million , respectively , of PPP loans . • Total deposits were $ 12.14 billion , an increase of $ 2.83 billion , or 30.42 % , compared to prior year and $ 0.57 billion , or 4.89 % , from December 31 , 2020 . • Noninterest bearing deposits increased by 58.17 % , to $ 4.84 billion , representing 39.87 % of total deposits . Compared to the linked quarter , noninterest bearing deposits increased 10.66 % . • Annualized return on common shareholders ' equity was 15.70 % and annualized return on average tangible common shareholders ' equity was 22.45 % ( non - GAAP ) . • Net interest margin for the quarter was 3.04 % and taxable equivalent net interest margin ( non - GAAP ) was 3.06 % . Nonperforming assets were $ 17.27 million , or 0.11 % of total assets , compared to $ 29.75 million , or 0.24 % , at March 31 , • 2020 . • Effective tax rate of 19.37 % in the quarter compared to 19.00 % in the first quarter of 2020 . " During the quarter we opened our newest banking office located in the Myers Park area of Charlotte , North Carolina , with a third Charlotte region banking office planned to open later this year . Looking ahead , we believe the investments in our newer markets will deliver significant growth opportunities as the economy improves , " stated J. Morgan Davis , President and Chief Executive Officer . Quarterly Net Interest Income Compared to First Quarter 2020 : • Net interest income was $ 99.99 million compared to $ 89.50 million at March 31 , 2020 . • Taxable equivalent net interest margin ( non - GAAP ) was 3.06 % , including purchase accounting accretion of 5 basis points and PPP interest and fees of 12 basis points , compared to 3.37 % , including purchase accounting accretion of 13 basis points and no PPP interest and fees , for first quarter 2020 . Average loans held for investment , with an average yield of 4.29 % , represented 72.30 % of average earning assets at March 31 , 2021 compared to an average yield of 4.73 % and 79.60 % of average earning assets in the first quarter of 2020 . Excluding PPP loans , loan yields were 4.18 % in first quarter 2021 .