Community banking

TowneBank Rises in 1Q on Mortgage and Insurance Income

By Chris Cumming April 25, 2013, 3:47 p.m. EDT 1 Min Read

Community banking

TowneBank Hires SunTrust Exec to Expand Mortgage Ops

TowneBank (TOWN) has hired J.G. Carter, a former SunTrust Banks (STI) executive, to help the Suffolk, Va., company expand its mortgage operations.

By Paul Davis

November 1
M&A

TowneBank in Virginia Buys N.C. Insurance Agency

TowneBank in Suffolk, Va., has acquired The Clement Companies, an insurance agency in Greenville, N.C.

By Paul Davis

February 1

TowneBank (TOWN) in Suffolk, Va., reported record quarterly profit driven by mortgage-banking and insurance revenue.

The $4.4 billion-asset company said Thursday it earned $10.5 million in the first quarter, 11% more than in the first quarter of 2012, as its noninterest income rose 20%, to $23.8 million. Income from TowneBank's recently expanded mortgage operations rose 37%, to $7.8 million, and insurance commissions increased by 25%, to $8 million. TowneBank bought The Clement Companies, an insurance agency in Greenville, N.C., in February.

Net interest income ticked up by 1%, to $35.2 million, as earning assets increased while funding costs fell. The bank's loan portfolio increased by 10%, to $3.2 billion, compared to the year-prior period. Net interest margin tightened by 21 basis points, to 3.72%.

TowneBank's asset quality improved, as nonperforming loans fell 69%, to $17.4 million. Chargeoffs decreased by 12%, while provision for loan losses dropped 13%, to $3.6 million.

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