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TowneBank Reports Second Quarter 2021 Earnings JULY 29 , 2021 SUFFOLK , Va . , July 29 , 2021 ( GLOBE NEWSWIRE ) -- TowneBank ( the " Company " ) ( NASDAQ : TOWN ) today reported earnings for the quarter ended June 30 , 2021 of $ 55.80 million , or $ 0.77 per diluted share , compared to $ 34.61 million , or $ 0.48 per diluted share , for the quarter ended June 30 , 2020 . " Towne delivered another strong financial performance for the quarter with solid contributions across each of our business segments . Continued improvements in economic conditions led to an increase of nearly $ 50 million , or 16 % , in total revenues . In fact , CNBC recently recognized Virginia and North Carolina as the # 1 and # 2 top states , respectively , in our country for doing business . As our economy continues to normalize , our Company is well - positioned to capitalize on the opportunities to drive future growth , " said G. Robert Aston , Jr. , Executive Chairman . Highlights for Second Quarter 2021 Compared to Second Quarter 2020 : • Total revenues were $ 167.32 million , an increase of $ 4.67 million , or 2.87 % . • Pre - provision , pre - tax , net revenues ( non - GAAP ) were $ 59.73 million , a decrease of $ 9.29 million , or 13.46 % . • Loans held for investment were $ 9.42 billion , a decrease of $ 0.38 billion , or 3.86 % , from June 30 , 2020 , and $ 0.31 billion , or 3.19 % , from March 31 , 2021. Excluding the decline in loans from the Paycheck Protection Program ( " PPP " ) , loans held for investment increased $ 186.81 million , or 2.14 % , compared to June 30 , 2020 , and $ 62.46 million , or 2.84 % , on an annualized basis from the linked quarter . Total loans at June 30 , 2021 , June 30 , 2020 , and March 31 , 2021 included $ 0.52 billion , $ 1.09 billion , and $ 0.90 billion , respectively , of PPP loans . • Total deposits were $ 12.96 billion , an increase of $ 1.70 billion , or 15.09 % , compared to prior year and $ 0.82 billion , or 27.26 % on an annualized basis , from March 31 , 2021 . • Noninterest bearing deposits increased by 24.06 % , to $ 5.24 billion , representing 40.44 % of total deposits . Compared to the linked quarter , noninterest bearing deposits increased 8.31 % , or 33.34 % , on an annualized basis . • Annualized return on common shareholders ' equity was 12.31 % and annualized return on average tangible common shareholders ' equity was 17.57 % ( non - GAAP ) . • • Net interest margin for the quarter was 2.92 % and taxable equivalent net interest margin ( non - GAAP ) was 2.94 % . Nonperforming assets were $ 15.22 million , or 0.10 % of total assets , compared to $ 29.25 million , or 0.19 % , at June 30 , 2020 , primarily due to the sale of several OREO properties . • Effective tax rate of 20.03 % in the quarter compared to 17.74 % in second quarter 2020 . " We were pleased to deliver more than $ 62 million in core loan growth , excluding PPP , during the quarter . Strong credit performance and continued reductions in loan deferrals coupled with an improving economic forecast led to a modest release in loan loss reserves . Looking ahead , as liquidity continues to build we would expect continued pressure on our net interest margins , highlighting the importance of our fee - based business lines and diversified business model , " stated J. Morgan Davis , President and Chief Executive Officer . Quarterly Net Interest Income Compared to Second Quarter 2020 : • Net interest income was $ 101.14 million compared to $ 93.27 million at June 30 , 2020 . • Tax - equivalent net interest margin ( non - GAAP ) was 2.94 % , including purchase accounting accretion of 5 basis points and PPP interest and fees of 10 basis points , compared to 2.87 % , including purchase accounting accretion of 8 basis points and a 16 basis point decline in interest and fees related to PPP , for second quarter 2020 . • On an average basis , loans held for investment , with a yield of 4.24 % , represented 69.02 % of earning assets at June 30 , 2021 compared to a yield of 4.29 % and 73.10 % of earning assets in the second quarter of 2020. Excluding PPP loans , loan yields were 4.15 % in second quarter 2021 compared to 4.42 % in second quarter 2020 .