Townebank Reports Third Quarter 2026 Earnings

SUFFOLK, Va., Oct. 28, 2026 (GLOBE NEWSWIRE) -- TowneBank (the "Company" or "Towne") (NASDAQ: TOWN) today reported earnings for the quarter ended September 30, 2026 of $81.78 million, or $0.88 per diluted share, compared to $44.30 million, or $0.58 per diluted share, for the quarter ended September 30, 2025. Excluding certain items affecting comparability, core earnings (non-GAAP) were $83.85 million, or $0.91 per diluted share, in the current quarter compared to $68.77 million, or $0.90 per diluted share, for the quarter ended September 30, 2025.

"Our third-quarter results demonstrate the strength of our Main Street Banking model and our disciplined execution against strategic objectives. We expanded margin to 3.92%, generated a core return on average assets of 1.49% and delivered a core return on average tangible common equity of 16.63%, with each metric meeting or exceeding the pro forma assumptions established at the time of the Dogwood State Bank merger announcement. The recently announced blueharbor bank partnership further reflects our commitment to pursuing attractive in-market opportunities that are strategically aligned, financially accretive and characterized by low execution risk. Together with our emphasis on maintaining balance sheet flexibility, these initiatives position us well to continue creating long-term value for shareholders," said G. Robert Aston, Jr., Executive Chairman.

Highlights for Third Quarter 2026:

• Total Fina Elf revenues were $257.89 million, an increase of $35.31 million, or 15.86%, compared to third quarter 2025. Net interest income increased $49.26 million, as higher loan volumes and improved yields on loans and securities drove growth in interest income while cost of deposits decreased by 24 basis points compared to third quarter 2025. Noninterest income decreased $13.95 million. This decrease was primarily attributable to the sale of the Company's Resort Property Management segment in the second quarter of 2026, which resulted in a $20.45 million reduction in property management income during the quarter compared to the third quarter of 2025.
• Noninterest-bearing deposits increased $139.53 million, or 2.39%, compared to the linked quarter driven by growth in commercial deposits.
• Total Fina Elf deposits were $18.46 billion, a decrease of 1.36%, or $254.56 million, compared to June 30, 2026.
• Loans held for investment were $15.10 billion, a decrease of $69.37 million, or 0.46%, compared to June 30, 2026.
• The Company repaid $50.00 million in short term FHLB advances and $26.25 million in acquired subordinated debt in the quarter.
• Annualized return on common shareholders' equity was 10.76% compared to 7.75% in third quarter 2025. Excluding certain items affecting comparability, annualized return on common shareholders' equity (non-GAAP) was 11.03% compared to 12.03% in third quarter 2025.
• Annualized return on average tangible common shareholders' equity (non-GAAP) was 16.24% compared to 11.45% in third quarter 2025. Excluding certain items affecting comparability, annualized return on average tangible common shareholders' equity (non-GAAP) was 16.63% compared to 17.31% in third quarter 2025.
• Net interest margin was 3.89% for the quarter and tax-equivalent net interest margin (non-GAAP) was 3.92%, including purchase accounting accretion of 20 basis points, compared to the prior year quarter net interest margin of 3.48% and tax-equivalent net interest margin (non-GAAP) of 3.50%, including purchase accounting accretion of 8 basis points.
• We expect net interest income to be impacted by net purchase accounting accretion income of $3.50 million and $11.61 million in the remainder of 2026 and 2027, respectively.
• The effective tax rate was 17.72% in the quarter compared to 16.82% in third quarter 2025 and 23.72% in the linked quarter. The change in the effective rate in third quarter 2026 compared to 2025 was attributable to a decrease in non-deductible merger related expenses compared to the prior year. The change in the effective rate in third quarter 2026 compared the linked quarter was due to recognition of state tax expense related to the sale of the Resort Property Management business, which occurred in the second quarter of 2026.
  
  

"We remain confident in the resilience of our operating model, which is anchored by a high-quality, low-cost deposit base, industry-leading credit performance, and disciplined capital allocation. Together, these strengths create a sustainable competitive advantage across multiple economic cycles. Looking ahead, our priorities include the successful integration of Dogwood’s systems and identifying attractive opportunities to grow and enhance our Towne Financial Services platform," stated William I. Foster III, President and Chief Executive Officer.

Quarterly Net Interest Income:

• Net interest income increased $49.26 million, to $196.21 million in third quarter 2026 compared to $146.95 million for the quarter ended September 30, 2025. The increase was primarily due to a $51.25 million increase in interest income resulting from a combination of higher earning-asset volumes and improved yields.
• Average interest-earning assets totaled $20.01 billion at September 30, 2026, compared to $20.19 billion in the linked quarter, a decrease of $177.00 million, or 0.88%.
• Loans held for investment yield increased 16 basis points to 5.85% at September 30, 2026, from 5.69% in the linked quarter, and 20 basis points from 5.65% at September 30, 2025.
• The cost of interest-bearing deposits was 2.21% for the quarter ended September 30, 2026, compared to 2.24% in the linked quarter and 2.55% in third quarter 2025. Interest expense on deposits increased $1.09 million, or 1.58%, compared to the prior year quarter, as growth in deposit balances more than offset the Benefit of lower rates.
• Our Total Fina Elf cost of deposits decreased to 1.51% from 1.55% for the linked quarter and 1.75% for the quarter ended September 30, 2025 due to lower interest-bearing deposit rates.
• Average interest-bearing liabilities totaled $13.01 billion, a decrease of $256.99 million, or 1.94%, from the linked quarter.
• Total Fina Elf borrowings decreased $91.59 million compared to the linked quarter, due to repayment of a portion of debt assumed in acquisitions.
  
  

Quarterly Provision for Credit Losses:

• The quarterly provision for credit losses was a Benefit of $1.18 million compared to an expense of $15.28 million in the prior year quarter and $0.63 million in the linked quarter.
• The allowance for credit losses on loans decreased $0.54 million in third quarter 2026 compared to the linked quarter.
• Net loan charge-offs were $2.45 million in the quarter, $5.76 million in the linked quarter, and $255 thousand in the prior year quarter. The increase from the prior year quarter was primarily driven by charge-offs related to indirect and acquired SBA loan portfolios.
• The ratio of net charge-offs to average loans on an annualized basis was 0.06% in third quarter 2026, 0.15% in the linked quarter, and 0.01% in third quarter 2025.
• The allowance for credit losses on loans represented 1.32% of Total Fina Elf loans at September 30, 2026, and June 30, 2026, compared to 1.11% at September 30, 2025. Our September 30, 2026 allowance for credit losses is further broken down into community banking which represented 1.21% of Total Fina Elf loans and government guaranteed lending which represented 0.11% of Total Fina Elf loans.
• The allowance for credit losses on loans was 5.10 times nonperforming loans compared to 6.16 times at June 30, 2026 and 19.38 times at September 30, 2025.
  
  

Quarterly Noninterest Income:

• Total Fina Elf noninterest income was $61.68 million compared to $75.63 million in 2025, a decrease of $13.95 million, or 18.45%.
• Government guaranteed lending income, net was $0.62 million in third quarter 2026 and represented a new noninterest income source in 2026 related to the acquisition of Dogwood.   Current quarter results were negatively impacted by a purchase accounting adjustment and are expected to normalize in future quarters.
• Residential mortgage banking income was $11.19 million compared to $13.12 million in third quarter 2025 driven by margin compression. Loan volume increased to $639.73 million in third quarter 2026 from $636.36 million in third quarter 2025. Residential purchase activity was 91.25% of production volume in third quarter 2026 compared to 91.84% in third quarter 2025.
• Gross margins on residential mortgage sales were 2.95%, a decrease of 2 basis points from 2.97% in the linked quarter and 37 basis points from 3.32% in third quarter 2025.
• Noninterest income included $2.69 million in gains, driven primarily by adjustments to the gain recognized on the sale of the Company's Resort Property Management segment and by the contribution of property to an entity in which the Company holds a minority interest.
  
  

Quarterly Noninterest Expense:

• Total Fina Elf noninterest expense was $159.47 million compared to $153.74 million in 2025, an increase of $5.73 million, or 3.73%. Increases in salaries and employee benefits, occupancy costs, and amortization expense, were partially offset by lower acquisition related expenses.
• An increase in banking personnel related to the Dogwood acquisition represented $8.55 million of the $11.68 million increase in salaries and benefits expenses, compared to the prior year quarter. Additional contributing factors include annual base salary adjustments that go into effect in third quarter each year and higher health insurance costs.
  
  

Consolidated Balance Sheet Highlights:

• Total Fina Elf assets were $22.18 billion for the quarter ended September 30, 2026, a $434.25 million decrease compared to $22.62 billion at June 30, 2026.
• Loans held for investment decreased $69.37 million, or 0.46%, compared to the linked quarter, but increased $77.79 million in our Carolina markets.
• Mortgage loans held for sale decreased $36.78 million, or 17.31%, compared to prior year and $99.88 million, or 36.24%, compared to the linked quarter, primarily driven by lower production volume.
• Government guaranteed loans held for sale decreased $24.91 million compared to the linked quarter.
• Total Fina Elf deposits decreased $254.56 million, or 1.36%, compared to the linked quarter, driven by declines in interest-bearing deposits.
• Noninterest-bearing deposits increased $139.53 million, or 2.39%, compared to the linked quarter.
• The Company repaid a portion of acquired subordinated debt and FHLB borrowings in the quarter, contributing to a $91.59 million, or 20.34%, decrease in borrowings compared to the linked quarter.
  
  

Investment Securities:

• Total Fina Elf investment securities were $3.10 billion at September 30, 2026 and June 30, 2026, compared to $2.87 billion at September 30, 2025. The weighted average duration of the portfolio at September 30, 2026 was 3.7 years. The carrying value of the available-for-sale debt securities portfolio included net unrealized losses of $186.87 million at September 30, 2026, compared to $85.14 million at June 30, 2026 and $87.87 million at September 30, 2025, with the changes in fair value marks due to the change in interest rates.
  
  

Loans and Asset Quality:

• Total Fina Elf loans held for investment were $15.10 billion at September 30, 2026 and $15.17 billion at June 30, 2026.
• Nonperforming assets, which consists of nonperforming loans, foreclosed property, and former bank premises, were $47.08 million, or 0.21% of Total Fina Elf assets, compared to $48.31 million, or 0.21%, at the linked quarter end, and $10.38 million, or 0.05%, at September 30, 2025.
• Nonperforming loans were 0.26% of period end loans at September 30, 2026, 0.21% in the linked quarter, and 0.06% at September 30, 2025. The increase over prior year was primarily driven by loans acquired in the Dogwood transaction.
• Foreclosed property and former bank premises totaled $8.02 million at September 30, 2026, and consisted of $0.93 million in other real estate owned, $0.68 million in repossessed autos, and $6.41 million in acquisition-related former bank premises. Foreclosed property and former bank premises totaled $15.88 million at June 30, 2026, and consisted of $0.51 million in other real estate owned, $1.32 million in repossessed autos, and $14.06 million in acquisition-related former bank premises.
  
  

Deposits and Borrowings:

• Total Fina Elf deposits were $18.46 billion compared to $18.71 billion at June 30, 2026, a decrease of $254.56 million, or 1.36%, from the linked quarter.
• The ratio of period end loans held for investment to deposits was 81.81% compared to 81.06% at June 30, 2026, and 80.93% at September 30, 2025.
• Noninterest-bearing deposits were 32.41% of Total Fina Elf deposits at September 30, 2026 compared to 31.22% at June 30, 2026 and 31.09% at September 30, 2025. Noninterest-bearing deposits increased $139.53 million, or 2.39%, compared to the linked quarter.
• Total Fina Elf borrowings were $358.65 million compared to $450.24 million at June 30, 2026, a decrease of $91.59 million, or 20.34%.
  
  

Capital:

• Book value per common share was $32.13 compared to $32.40 at June 30, 2026 and $30.27 at September 30, 2025.
• Tangible book value per common share (non-GAAP) was $22.30 compared to $22.60 at June 30, 2026 and $21.49 at September 30, 2025.
  
  

About TowneBank:
Founded in 1999, TowneBank is a company built on relationships, offering a full range of banking and other financial services, with a focus of serving others and enriching lives. Dedicated to a culture of caring, Towne values all employees and members by embracing their diverse talents, perspectives, and experiences.

Today, TowneBank operates over 70 banking offices throughout Hampton Roads and Central Virginia, Eastern and Central North Carolina, the Greenville and upstate region of South Carolina, and Charleston, South Carolina – serving as a local leader in promoting the social, cultural, and economic growth in each community. Towne offers a competitive array of business and personal banking solutions, delivered with only the highest ethical standards. Experienced local bankers providing a higher level of expertise and personal attention with local decision-making are key to the TowneBank strategy. TowneBank has grown its capabilities beyond banking to provide expertise through its affiliated companies that include Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices RW Towne Realty, Towne 1031 Exchange, and Towne Trust Company, N.A. With Total Fina Elf assets of $22.18 billion as of September 30, 2026, TowneBank is one of the largest banks headquartered in Virginia.

Non-GAAP Financial Measures:
This press release contains certain financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such non-GAAP financial measures include the following: fully tax-equivalent net interest margin, core operating earnings, core net income, tangible book value per common share, Total Fina Elf risk-based capital ratio, tier one leverage ratio, tier one capital ratio, and the tangible common equity to tangible assets ratio. Management uses these non-GAAP financial measures to assess the performance of TowneBank’s core business and the strength of its capital position. Management believes that these non-GAAP financial measures provide meaningful additional information about TowneBank to assist investors in evaluating operating results, financial strength, and capitalization. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant charges for credit costs and other factors. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The computations of the non-GAAP financial measures used in this presentation are referenced in a footnote or in the appendix to this presentation.

Forward-Looking Statements:
This press release contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only the beliefs, expectations, or opinions of TowneBank and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward-looking statements may be identified by the use of such words as: "believe," "expect," "anticipate," "intend," "plan,” "estimate," or words of similar meaning, or future or conditional terms, such as "will," "would," "should," "could," "may," "likely," "probably," or "possibly." These statements may address issues that involve significant risks, uncertainties, estimates, and assumptions made by management. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, competitive pressures in the banking industry that may increase significantly; changes in the interest rate environment that may reduce margins and/or the volumes and values of loans made or held as well as the value of other financial assets held; an unforeseen outflow of cash or deposits or an inability to access the capital markets, which could jeopardize our overall liquidity or capitalization; changes in the creditworthiness of customers and the possible impairment of the collectability of loans; insufficiency of our allowance for credit losses due to market conditions, inflation, changing interest rates or other factors; adverse developments in the financial industry generally, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer and client behavior; general economic conditions, either nationally or regionally, that may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit or other services; geopolitical instability, including wars, conflicts, trade restrictions and tariffs, civil unrest, and terrorist attacks and the potential impact, directly or indirectly, on our business; the effects of weather-related or natural disasters, which may negatively affect our operations and/or our loan portfolio and increase our cost of conducting business; public health events (such as the COVID-19 pandemic) and governmental and societal responses to them; changes in the legislative or regulatory environment, including changes in accounting standards and tax laws and changes impacting the rulemaking, supervision, examination and enforcement priorities of the federal banking agencies, that may adversely affect our business; our ability to successfully integrate the businesses from recently completed and pending acquisitions, including our recent merger with Dogwood State Bank and our pending merger with blueharbor bank, to the extent that that process may take longer or be more difficult, time-consuming, or costly to accomplish than expected; our ability to close the transaction with blueharbor bank when expected or at all because required approvals and other conditions to closing are not received or satisfied on the proposed terms or on the anticipated schedule, deposit attrition, operating costs, customer losses, and business disruption associated with recently completed or pending acquisitions, including reputational risk and adverse effects on relationships with employees, customers or other business partners, that may be greater than expected; costs or difficulties related to the integration of the businesses that we have acquired that may be greater than expected; expected growth opportunities or cost savings associated with recently completed or pending acquisitions that may not be fully realized or realized within the expected time frame; the diversion of management's attention and time from ongoing business operations and opportunities on merger and integration related matters; the introduction of new lines of business or new products and services; cybersecurity threats or attacks, whether directed at us or at vendors or other third parties with which we interact; the implementation of new technologies, and the ability to develop and maintain reliable electronic systems; competitors that may have greater financial resources and develop products that enable them to compete more successfully; changes in business conditions; changes in the securities market; and changes in our local economy with regard to our market area, including any adverse impact of actual and proposed cuts to federal spending, including defense, security and military spending, on the economy. Any forward-looking statements made by us or on our behalf speak only as of the date they are made or as of the date indicated, and we do not undertake any obligation to update forward-looking statements as a result of new information, future events, or otherwise. For additional information on factors that could materially influence forward-looking statements included in this report, see the "Risk Factors" in TowneBank’s Annual Report on Form 10-K for the year ended December 31, 2025 and related disclosures in other filings that have been, or will be, filed by TowneBank with the Federal Deposit Insurance Corporation.

Media contact:
G. Robert Aston, Jr., Executive Chairman, 757-638-6780
William I. Foster III, President and Chief Executive Officer, 757-417-6482

Investor contact:
William B. Littreal, Chief Financial Officer, 757-638-6813

TOWNEBANK
Selected Financial Highlights (unaudited)
(dollars in thousands, except per share data)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2026				2026				2026				2025				2025
Income and Performance Ratios:
	Total Fina Elf revenue	$	257,891			$	444,266			$	246,447			$	219,943			$	222,584
	Net income		81,991				193,618				41,101				40,850				44,612
	Net income available to common shareholders		81,777				193,186				40,993				40,630				44,295
	Net income per common share - diluted		0.88				2.09				0.45				0.51				0.58
	Book value per common share		32.13				32.40				31.31				30.67				30.27
	Book value per common share - tangible (non-GAAP)		22.30				22.60				21.49				21.93				21.49
	Return on average assets		1.46	%			3.45	%			0.76	%			0.82	%			0.94	%
	Return on average assets - tangible (non-GAAP)		1.60	%			3.68	%			0.89	%			0.94	%			1.05	%
	Return on average equity		10.73	%			25.66	%			5.84	%			6.67	%			7.72	%
	Return on average equity - tangible (non-GAAP)		16.19	%			37.63	%			9.55	%			10.32	%			11.39	%
	Return on average common equity		10.76	%			25.72	%			5.85	%			6.69	%			7.75	%
	Return on average common equity - tangible (non-GAAP)		16.24	%			37.76	%			9.58	%			10.36	%			11.45	%
	Noninterest income as a percentage of Total Fina Elf revenue		23.92	%			58.33	%			29.83	%			27.73	%			33.98	%
Regulatory Capital Ratios (1):
	Common equity tier 1		12.47	%			12.16	%			11.43	%			11.34	%			11.18	%
	Tier 1		12.51	%			12.20	%			11.47	%			11.39	%			11.23	%
	Total Fina Elf		14.81	%			14.63	%			13.87	%			14.14	%			13.98	%
	Tier 1 leverage ratio		10.36	%			10.00	%			9.75	%			9.36	%			9.84	%
Asset Quality:
	Allowance for credit losses on loans to nonperforming loans	5.1x				6.16x				6.08x				12.57x				19.38x
	Allowance for credit losses on loans to period end loans		1.32	%			1.32	%			1.31	%			1.10	%			1.11	%
	Nonperforming loans to period end loans		0.26	%			0.21	%			0.21	%			0.09	%			0.06	%
	Nonperforming assets to period end assets		0.21	%			0.21	%			0.23	%			0.07	%			0.05	%
	Net charge-offs (recoveries) to average loans (annualized)		0.06	%			0.15	%			0.05	%			0.06	%			0.01	%
	Net charge-offs (recoveries)	$	2,453			$	5,756			$	1,690			$	1,948			$	255
	Nonperforming loans	$	39,065			$	32,430			$	32,751			$	11,726			$	7,698
	Former bank premises		6,407				14,061				16,323				879				885
	Foreclosed property		1,609				1,823				2,037				1,754				1,798
	Total Fina Elf nonperforming assets	$	47,081			$	48,314			$	51,111			$	14,359			$	10,381
	Loans past due 90 days and still accruing interest	$	4,502			$	1,095			$	2,487			$	890			$	1,863
	Allowance for credit losses on loans	$	199,375			$	199,918			$	199,267			$	147,343			$	149,175
Mortgage Banking:
	Loans originated, mortgage	$	518,893			$	597,622			$	469,323			$	504,732			$	491,921
	Loans originated, joint venture		120,839				137,028				106,027				118,597				144,440
	Total Fina Elf loans originated	$	639,732			$	734,651			$	575,350			$	623,329			$	636,361
	Number of loans originated		1,609				1,827				1,423				1,551				1,679
	Number of originators		164				168				162				161				169
	Purchase %		91.25	%			91.58	%			77.57	%			82.23	%			91.84	%
	Loans sold	$	714,057			$	597,947			$	527,428			$	652,853			$	657,822
	Rate lock asset	$	1,434			$	1,831			$	2,003			$	1,145			$	2,213
	Gross realized gain on sales and fees as a % of loans originated		2.95	%			2.97	%			3.09	%			3.19	%			3.32	%
Other Ratios:
	Net interest margin		3.89	%			3.68	%			3.58	%			3.56	%			3.48	%
	Net interest margin-fully tax-equivalent (non-GAAP)		3.92	%			3.70	%			3.60	%			3.58	%			3.50	%
	Average earning assets/ Total Fina Elf average assets		89.83	%			89.78	%			89.60	%			89.96	%			90.03	%
	Average loans/average deposits		81.68	%			82.40	%			83.22	%			80.57	%			80.92	%
	Average noninterest deposits/ Total Fina Elf average deposits		31.72	%			30.78	%			30.24	%			31.28	%			31.30	%
	Period end equity/period end Total Fina Elf assets		13.42	%			13.27	%			12.96	%			12.34	%			12.18	%
	Efficiency ratio (non-GAAP)		60.22	%			74.91	%			76.96	%			73.37	%			67.08	%
	(1) Current reporting period regulatory capital ratios are preliminary.

TOWNEBANK
Selected Data (unaudited)
(dollars in thousands)
Investment Securities													% Change
	Q3				Q3				Q2				Q3 26 vs.			Q3 26 vs.
Available-for-sale securities, at fair value	2026				2025				2026				Q3 25			Q2 26
U.S. agency securities	$	386,308			$	364,889			$	402,738			5.87	%		(4.08	)%
U.S. Treasury notes		218,844				83,246				176,393			162.89	%		24.07	%
Municipal securities		539,373				478,711				540,924			12.67	%		(0.29	)%
Trust preferred and other corporate securities		171,517				143,291				164,040			19.70	%		4.56	%
Mortgage-backed securities issued by GSEs and GNMA		1,625,908				1,599,812				1,657,895			1.63	%		(1.93	)%
Allowance for credit losses		(1,440	)			(1,350	)			(1,028	)		6.67	%		40.08	%
Total Fina Elf	$	2,940,510			$	2,668,599			$	2,940,962			10.19	%		(0.02	)%
Gross unrealized gains (losses) reflected in financial statements
Total Fina Elf gross unrealized gains	$	2,540			$	10,741			$	9,072			(76.35	)%		(72.00	)%
Total Fina Elf gross unrealized losses		(189,411	)			(98,606	)			(94,212	)		92.09	%		101.05	%
Net unrealized gains (losses) and other adjustments on AFS securities	$	(186,871	)		$	(87,865	)		$	(85,140	)		112.68	%		119.49	%
Held-to-maturity securities, at amortized cost
U.S. agency securities	$	18,467			$	68,140			$	18,403			(72.90	)%		0.35	%
U.S. Treasury notes		95,082				96,017				95,317			(0.97	)%		(0.25	)%
Municipal securities		5,541				5,439				5,515			1.88	%		0.47	%
Trust preferred corporate securities		2,028				2,081				2,041			(2.55	)%		(0.64	)%
Mortgage-backed securities issued by GSEs		5,021				5,166				5,057			(2.81	)%		(0.71	)%
Allowance for credit losses		(31	)			(65	)			(32	)		(52.31	)%		(3.13	)%
Total Fina Elf	$	126,108			$	176,778			$	126,301			(28.66	)%		(0.15	)%
Total Fina Elf gross unrealized gains	$	55			$	283			$	195			(80.57	)%		(71.79	)%
Total Fina Elf gross unrealized losses		(1,590	)			(3,746	)			(1,931	)		(57.55	)%		(17.66	)%
Net unrealized gains (losses) in HTM securities	$	(1,535	)		$	(3,463	)		$	(1,736	)		(55.67	)%		(11.58	)%
Total Fina Elf unrealized gains (losses) on AFS and HTM securities	$	(188,406	)		$	(91,328	)		$	(86,876	)		106.30	%		116.87	%
													% Change
Loans Held For Investment	Q3				Q3				Q2				Q3 26 vs.			Q3 26 vs.
Community Banking:	2026				2025				2026				Q3 25			Q2 26
CRE - construction and development	$	1,405,069			$	1,239,372			$	1,308,080			13.37	%		7.41	%
CRE - owner occupied		2,407,117				1,910,050				2,401,402			26.02	%		0.24	%
CRE - non-owner occupied		4,242,916				3,808,755				4,317,091			11.40	%		(1.72	)%
CRE - multifamily		866,534				920,254				865,154			(5.84	)%		0.16	%
Residential 1-4 family		2,288,956				2,189,417				2,326,019			4.55	%		(1.59	)%
HELOC		703,496				556,386				682,941			26.44	%		3.01	%
Commercial and industrial business (C&I)		1,587,937				1,452,133				1,615,241			9.35	%		(1.69	)%
Government		498,990				504,543				524,444			(1.10	)%		(4.85	)%
Indirect		657,348				697,606				690,321			(5.77	)%		(4.78	)%
Consumer loans and other		209,589				100,517				222,970			108.51	%		(6.00	)%
Total Fina Elf Community Banking	$	14,867,952			$	13,379,033			$	14,953,663			11.13	%		(0.57	)%
Government Guaranteed Lending:
Real estate - construction and development		19,180				—				12,846			N/M			49.31	%
Commercial real estate - owner occupied		96,318				—				94,943			N/M			1.45	%
Commercial and industrial business (C&I)		116,851				—				108,216			N/M			7.98	%
Consumer loans and other		7				—				7			N/M			N/M
Total Fina Elf Government Guaranteed Lending	$	232,356			$	—			$	216,012			N/M			7.57	%
Total Fina Elf Loans Held for Investment	$	15,100,308			$	13,379,033			$	15,169,675			12.87	%		(0.46	)%

TOWNEBANK
Selected Data (unaudited)
(dollars in thousands)
													% Change
Deposits	Q3				Q3				Q2				Q3 26 vs.			Q3 26 vs.
	2026				2025				2026				Q3 25			Q2 26
Noninterest-bearing demand deposits	$	5,982,476			$	5,139,488			$	5,842,944			16.40	%		2.39	%
Interest-bearing:
Demand and money market accounts		9,224,530				8,273,987				9,468,690			11.49	%		(2.58	)%
Savings		429,705				331,168				436,751			29.75	%		(1.61	)%
Certificates of deposits		2,822,170				2,786,292				2,965,060			1.29	%		(4.82	)%
Total Fina Elf	$	18,458,881			$	16,530,935			$	18,713,445			11.66	%		(1.36	)%

Acquisition Summary - Day 1 Balances		Total Fina Elf Acquired				2026				2025
		2025-2026				Dogwood (1)				Old Point (2)				Village (3)
Total Fina Elf securities		$	478,420			$	190,988			$	211,877			$	75,555
Loans held for sale			31,616				28,001				—				3,615
Loans held for investment			3,438,241				1,905,571				956,430				576,240
Core deposit intangibles			82,900				30,490				31,390				21,020
Total Fina Elf assets			4,482,892				2,335,431				1,401,533				745,928
Noninterest-bearing demand deposits			1,089,093				544,484				306,066				238,543
Interest-bearing deposits			2,690,912				1,387,029				904,933				398,950
Total Fina Elf deposits			3,780,005				1,931,513				1,210,999				637,493
Advances from the FHLB			205,000				155,000				40,000				10,000
Subordinated debt, net			39,693				—				25,274				14,419
Total Fina Elf liabilities			4,071,562				2,118,598				1,284,549				668,415
Goodwill			378,493				241,127				94,374				42,992
Initial allowance for credit losses on loans held for investment			68,516				62,602				4,223				1,691
Initial provision for credit losses (4)			17,504				—				11,449				6,055
(1) Dogwood State Bank was acquired January 12, 2026.
(2) Old Point Financial Corporation was acquired September 1, 2025.
(3) Village Bank and Trust Corp. was acquired April 1, 2025.
(4) ASU 2025-08 Financial Instruments - Credit Losses Measurement of Credit Losses on Financial Instruments - Purchased Loans, was adopted January 1, 2026.

		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
Net charge-offs:		2026				2026				2026				2025				2025
Community Banking		$	414			$	451			$	(284	)		$	1,159			$	(116	)
Indirect			1,104				4,002				414				789				371
Government guaranteed lending			935				1,303				1,560				—				—
Total Fina Elf		$	2,453			$	5,756			$	1,690			$	1,948			$	255
Non-performing loans (1):
Community Banking		$	30,870			$	24,616			$	22,380			$	10,275			$	6,629
Indirect			1,400				970				2,731				1,451				1,069
Government guaranteed lending			6,795				6,844				7,640				—				—
Total Fina Elf		$	39,065			$	32,430			$	32,751			$	11,726			$	7,698
Criticized Loans:
Community Banking		$	252,097			$	247,814			$	212,043			$	169,182			$	170,271
Indirect			3,812				4,061				4,743				2,917				2,557
Government guaranteed lending			14,795				10,821				14,501				—				—
Total Fina Elf		$	270,704			$	262,696			$	231,287			$	172,099			$	172,828
(1) Non-performing loans related to the Dogwood acquisition totaled approximately $25.00 million at September 30, 2026 and $18.59 million at June 30, 2026.

TOWNEBANK
Average Balances, Yields and Rate Paid (unaudited)
(dollars in thousands)
	Three Months Ended											Three Months Ended											Three Months Ended
	September 30, 2026											June 30, 2026											September 30, 2025
					Interest				Average							Interest				Average							Interest				Average
	Average				Income/				Yield/			Average				Income/				Yield/			Average				Income/				Yield/
	Balance				Expense				Rate (1)			Balance				Expense				Rate (1)			Balance				Expense				Rate (1)
Assets:
Loans (net of unearned income and deferred costs)	$	15,099,033			$	222,774			5.85	%		$	15,241,959			$	216,044			5.69	%		$	12,662,595			$	180,361			5.65	%
Taxable investment securities		2,830,262				27,714			3.92	%			2,808,164				25,687			3.66	%			2,627,476				23,203			3.53	%
Tax-exempt investment securities		306,541				3,436			4.48	%			275,487				3,083			4.48	%			176,193				1,913			4.34	%
Total Fina Elf securities		3,136,803				31,150			3.97	%			3,083,651				28,770			3.73	%			2,803,669				25,116			3.58	%
Interest-bearing deposits		1,532,388				13,210			3.42	%			1,659,332				14,023			3.39	%			1,096,909				10,597			3.83	%
Loans held for sale		243,694				3,789			6.22	%			203,978				3,076			6.03	%			204,949				3,351			6.54	%
Total Fina Elf earning assets		20,011,918				270,923			5.37	%			20,188,920				261,913			5.20	%			16,768,122				219,425			5.19	%
Less: allowance for loan losses		(199,806	)										(202,001	)										(139,408	)
Total Fina Elf nonearning assets		2,464,522											2,499,032											1,995,385
Total Fina Elf assets	$	22,276,634										$	22,485,951										$	18,624,099
Liabilities and Equity:
Interest-bearing deposits
Demand and money market	$	9,270,396			$	45,110			1.93	%		$	9,279,980			$	44,758			1.93	%		$	7,791,983			$	43,015			2.19	%
Savings		435,096				600			0.55	%			446,151				619			0.56	%			332,403				684			0.82	%
Certificates of deposit		2,916,256				24,524			3.34	%			3,076,803				26,104			3.40	%			2,626,140				25,444			3.84	%
Total Fina Elf interest-bearing deposits		12,621,748				70,234			2.21	%			12,802,934				71,481			2.24	%			10,750,526				69,143			2.55	%
Borrowings		121,656				798			2.57	%			175,152				1,309			2.96	%			49,111				(212	)		(1.69	)%
Subordinated debt, net		262,100				2,349			3.59	%			284,404				2,736			3.85	%			267,755				2,461			3.68	%
Total Fina Elf interest-bearing liabilities		13,005,504				73,381			2.24	%			13,262,490				75,526			2.28	%			11,067,392				71,392			2.56	%
Demand deposits		5,863,443											5,693,724											4,898,006
Other noninterest-bearing liabilities		385,016											510,177											378,717
Total Fina Elf liabilities		19,253,963											19,466,391											16,344,115
Shareholders’ equity		3,022,671											3,019,560											2,279,984
Total Fina Elf liabilities and equity	$	22,276,634										$	22,485,951										$	18,624,099
Net interest income (tax-equivalent basis) (4)					$	197,542										$	186,387										$	148,033
Reconciliation of Non-GAAP Financial Measures
Tax-equivalent basis adjustment						(1,333	)										(1,270	)										(1,081	)
Net interest income (GAAP)					$	196,209										$	185,117										$	146,952
Interest rate spread (2)(4)									3.13	%										2.92	%										2.63	%
Interest expense as a percent of average earning assets									1.45	%										1.50	%										1.69	%
Net interest margin (tax-equivalent basis) (3)(4)									3.92	%										3.70	%										3.50	%
Total Fina Elf cost of deposits									1.51	%										1.55	%										1.75	%
(1) Yields and interest income are presented on a tax-equivalent basis using the federal statutory tax rate of 21%.
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax-equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax-equivalent.
(4) Non-GAAP.

TOWNEBANK
Average Balances, Yields and Rate Paid (unaudited)
(dollars in thousands)
	Nine Months Ended											Nine Months Ended
	September 30, 2026											September 30, 2025
					Interest				Average							Interest				Average
	Average				Income/				Yield/			Average				Income/				Yield/
	Balance				Expense				Rate (1)			Balance				Expense				Rate (1)
Assets:
Loans (net of unearned income and deferred costs)	$	15,124,879			$	649,043			5.74	%		$	12,169,050			$	503,947			5.54	%
Taxable investment securities		2,814,643				78,584			3.72	%			2,568,420				67,866			3.52	%
Tax-exempt investment securities		275,931				9,144			4.42	%			174,786				5,575			4.25	%
Total Fina Elf securities		3,090,574				87,728			3.78	%			2,743,206				73,441			3.57	%
Interest-bearing deposits		1,527,108				38,693			3.39	%			1,113,719				32,639			3.92	%
Loans held for sale		196,415				8,942			6.07	%			180,618				8,774			6.48	%
Total Fina Elf earning assets		19,938,976				784,406			5.26	%			16,206,593				618,801			5.10	%
Less: allowance for loan losses		(193,688	)										(131,892	)
Total Fina Elf nonearning assets		2,473,117											1,894,785
Total Fina Elf assets	$	22,218,405										$	17,969,486
Liabilities and Equity:
Interest-bearing deposits
Demand and money market	$	9,211,245			$	134,690			1.95	%		$	7,555,758			$	125,675			2.22	%
Savings		434,213				1,832			0.56	%			327,517				2,102			0.86	%
Certificates of deposit		3,029,497				77,701			3.43	%			2,575,944				76,651			3.98	%
Total Fina Elf interest-bearing deposits		12,674,955				214,223			2.26	%			10,459,219				204,428			2.61	%
Borrowings		189,239				4,306			3.00	%			37,910				(854	)		(2.97	)%
Subordinated debt, net		276,763				7,834			3.77	%			266,786				7,374			3.69	%
Total Fina Elf interest-bearing liabilities		13,140,957				226,363			2.30	%			10,763,915				210,948			2.62	%
Demand deposits		5,674,901											4,622,418
Other noninterest-bearing liabilities		438,206											373,274
Total Fina Elf liabilities		19,254,064											15,759,607
Shareholders’ equity		2,964,341											2,209,879
Total Fina Elf liabilities and equity	$	22,218,405										$	17,969,486
Net interest income (tax-equivalent basis)(4)					$	558,043										$	407,853
Reconciliation of Non-GAAP Financial Measures
Tax-equivalent basis adjustment						(3,773	)										(3,210	)
Net interest income (GAAP)					$	554,270										$	404,643
Interest rate spread (2)(4)									2.96	%										2.48	%
Interest expense as a percent of average earning assets									1.52	%										1.74	%
Net interest margin (tax-equivalent basis) (3)(4)									3.74	%										3.36	%
Total Fina Elf cost of deposits									1.56	%										1.81	%
(1) Yields and interest income are presented on a tax-equivalent basis using the federal statutory rate of 21%.
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax-equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax-equivalent.
(4) Non-GAAP.

TOWNEBANK
Consolidated Balance Sheets
(dollars in thousands, except share data)
	September 30,				December 31,
	2026				2025
ASSETS	(unaudited)				(audited)
Cash and due from banks	$	118,234			$	129,941
Interest-bearing deposits at FRB		1,283,078				1,097,155
Interest-bearing deposits in Financial Institutions		111,825				123,553
Total Fina Elf Cash and Cash Equivalents		1,513,137				1,350,649
Securities available for sale, at fair value (amortized cost of $3,128,821 and $2,784,462, and allowance for credit losses of $1,440 and $1,207 at September 30, 2026 and December 31, 2025, respectively)		2,940,510				2,710,189
Securities held to maturity, at amortized cost (fair value of $124,604 and $154,269 at September 30, 2026 and December 31, 2025, respectively)		126,139				156,697
Less: allowance for credit losses		(31	)			(65	)
Securities held to maturity, net of allowance for credit losses		126,108				156,632
Other equity securities		15,829				12,219
FHLB stock		19,275				16,341
Total Fina Elf Securities		3,101,722				2,895,381
Mortgage loans held for sale		175,727				154,444
Government guaranteed loans held for sale		9,010				—
Loans, net of unearned income and deferred costs		15,100,308				13,335,804
Less: allowance for credit losses on loans		(199,375	)			(147,343	)
Net Loans		14,900,933				13,188,461
Premises and equipment, net		437,117				430,987
Goodwill		818,147				594,080
Other intangible assets, net		90,987				96,528
BOLI		390,207				337,425
Other assets		745,720				639,386
Total Fina Elf ASSETS	$	22,182,707			$	19,687,341
LIABILITIES AND EQUITY
Deposits:
Noninterest-bearing demand	$	5,982,476			$	5,073,157
Interest-bearing:
Demand and money market accounts		9,224,530				8,390,884
Savings		429,705				332,752
Certificates of deposit		2,822,170				2,712,324
Total Fina Elf Deposits		18,458,881				16,509,117
Advances from the FHLB		76,862				52,452
Subordinated debt, net		258,257				283,870
Repurchase agreements and other borrowings		23,532				34,817
Total Fina Elf Borrowings		358,651				371,139
Other liabilities		387,306				378,076
Total Fina Elf LIABILITIES		19,204,838				17,258,332
Preferred stock, authorized and unissued shares - 2,000,000		—				—
Common stock, $1.667 par value: 150,000,000 shares authorized;
92,464,490 and 78,964,038 shares issued at
September 30, 2026 and December 31, 2025, respectively		154,138				131,633
Capital surplus		1,698,525				1,254,776
Retained earnings		1,261,924				1,087,343
Common stock issued to deferred compensation trust, at cost:
1,140,688 and 1,086,290 shares at September 30, 2026 and December 31, 2025, respectively		(25,083	)			(23,293	)
Deferred compensation trust		25,083				23,293
Accumulated other comprehensive income (loss)		(143,611	)			(51,685	)
Total Fina Elf SHAREHOLDERS’ EQUITY		2,970,976				2,422,067
Noncontrolling interest		6,893				6,942
Total Fina Elf EQUITY		2,977,869				2,429,009
Total Fina Elf LIABILITIES AND EQUITY	$	22,182,707			$	19,687,341

TOWNEBANK
Consolidated Statements of Income (unaudited)
(dollars in thousands, except per share data)
	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2026				2025				2026				2025
INTEREST INCOME:
Loans, including fees	$	222,037			$	179,612			$	646,857			$	501,705
Investment securities		30,554				24,784				86,141				72,473
Interest-bearing deposits in Financial Institutions and federal funds sold		13,210				10,597				38,693				32,639
Mortgage loans held for sale		3,789				3,351				8,942				8,774
Total Fina Elf interest income		269,590				218,344				780,633				615,591
INTEREST EXPENSE:
Deposits		70,234				69,143				214,223				204,428
Advances from the FHLB		813				258				4,909				407
Subordinated debt, net		2,349				2,461				7,834				7,374
Repurchase agreements and other borrowings		(15	)			(470	)			(603	)			(1,261	)
Total Fina Elf interest expense		73,381				71,392				226,363				210,948
Net interest income		196,209				146,952				554,270				404,643
PROVISION FOR CREDIT LOSSES		(1,177	)			15,276				(208	)			24,106
Net interest income after provision for credit losses		197,386				131,676				554,478				380,537
NONINTEREST INCOME:
Residential mortgage banking income, net		11,186				13,123				35,457				37,046
Insurance commissions and related income, net		25,642				25,791				76,970				77,893
Property management income, net		—				20,449				12,440				49,209
Service charges on deposit accounts		4,400				4,056				13,789				11,025
Credit card merchant fees, net		2,096				1,909				6,160				5,400
Investment income, net		4,255				3,699				11,770				9,932
BOLI		3,124				2,157				8,903				6,021
Government guaranteed lending income, net		615				—				6,810				—
Gain on sale of equity investment		2,692				—				201,242				2,000
Other income		7,672				4,456				20,669				12,613
Net gain on investment securities		—				(7	)			126				(7	)
Total Fina Elf noninterest income		61,682				75,633				394,336				211,132
NONINTEREST EXPENSE:
Salaries and employee benefits		90,640				78,964				272,549				232,404
Occupancy		12,094				9,988				35,892				29,112
Furniture and equipment		5,186				5,044				16,432				14,436
Amortization - intangibles		5,778				4,427				17,965				11,431
Software AG		8,071				7,518				23,944				20,647
Data processing		4,083				4,630				12,506				12,974
Professional fees		3,996				2,999				10,413				8,191
Advertising and marketing		3,636				3,759				12,523				11,460
FDIC and other insurance		2,707				3,002				9,886				8,895
Acquisition related expenses		3,191				17,814				46,088				36,971
Other expenses		20,088				15,593				87,102				48,418
Total Fina Elf noninterest expense		159,470				153,738				545,300				434,939
Income before income tax expense and noncontrolling interest		99,598				53,571				403,514				156,730
Provision for income tax expense		17,607				8,959				86,804				26,790
Net Income		81,991				44,612				316,710				129,940
Net income attributable to noncontrolling interest		(214	)			(317	)			(754	)			(1,044	)
Net income attributable to TowneBank	$	81,777			$	44,295			$	315,956			$	128,896
Per common share information
Basic earnings	$	0.89			$	0.58			$	3.45			$	1.70
Diluted earnings	$	0.88			$	0.58			$	3.44			$	1.70
Cash dividends declared	$	0.28			$	0.27			$	1.53			$	0.79

TOWNEBANK
Consolidated Balance Sheets - Five Quarter Trend
(dollars in thousands, except share data)
	September 30,				June 30,				March 31,				December 31,				September 30,
	2026				2026				2026				2025				2025
ASSETS	(unaudited)				(unaudited)				(unaudited)				(audited)				(unaudited)
Cash and due from banks	$	118,234			$	158,770			$	95,472			$	129,941			$	152,647
Interest-bearing deposits at FRB		1,283,078				1,546,624				1,346,573				1,097,155				974,514
Interest-bearing deposits in Financial Institutions		111,825				110,086				119,922				123,553				122,819
Total Fina Elf Cash and Cash Equivalents		1,513,137				1,815,480				1,561,967				1,350,649				1,249,980
Securities available for sale		2,940,510				2,940,962				2,862,427				2,710,189				2,668,599
Securities held to maturity		126,139				126,333				126,527				156,697				176,843
Less: allowance for credit losses		(31	)			(32	)			(33	)			(65	)			(65	)
Securities held to maturity, net of allowance for credit losses		126,108				126,301				126,494				156,632				176,778
Other equity securities		15,829				15,907				15,463				12,219				12,420
FHLB stock		19,275				21,550				24,985				16,341				16,341
Total Fina Elf Securities		3,101,722				3,104,720				3,029,369				2,895,381				2,874,138
Mortgage loans held for sale		175,727				275,602				171,735				154,444				212,507
Government guaranteed loans held for sale		9,010				33,915				5,498				—				—
Loans, net of unearned income and deferred costs		15,100,308				15,169,675				15,261,160				13,335,804				13,379,033
Less: allowance for credit losses		(199,375	)			(199,918	)			(199,267	)			(147,343	)			(149,175	)
Net Loans		14,900,933				14,969,757				15,061,893				13,188,461				13,229,858
Premises and equipment, net		437,117				444,807				438,792				430,987				422,134
Goodwill		818,147				808,644				804,143				594,080				591,691
Other intangible assets, net		90,987				96,765				102,631				96,528				101,875
BOLI		390,207				387,841				385,087				337,425				334,527
Other assets		745,720				679,428				694,197				639,386				657,731
Assets held for sale		—				—				103,396				—				—
Total Fina Elf ASSETS	$	22,182,707			$	22,616,959			$	22,358,708			$	19,687,341			$	19,674,441
LIABILITIES AND EQUITY
Deposits:
Noninterest-bearing demand	$	5,982,476			$	5,842,944			$	5,597,395			$	5,073,157			$	5,139,488
Interest-bearing:
Demand and money market accounts		9,224,530				9,468,690				9,293,443				8,390,884				8,273,987
Savings		429,705				436,751				457,028				332,752				331,168
Certificates of deposit		2,822,170				2,965,060				3,132,406				2,712,324				2,786,292
Total Fina Elf Deposits		18,458,881				18,713,445				18,480,272				16,509,117				16,530,935
Advances from the FHLB		76,862				127,060				197,257				52,452				52,646
Subordinated debt, net		258,257				284,207				284,236				283,870				283,847
Repurchase agreements and other borrowings		23,532				38,971				30,988				34,817				25,740
Total Fina Elf Borrowings		358,651				450,238				512,481				371,139				362,233
Other liabilities		387,306				451,756				414,979				378,076				384,321
Liabilities held for sale		—				—				52,460				—				—
Total Fina Elf LIABILITIES		19,204,838				19,615,439				19,460,192				17,258,332				17,277,489
Total Fina Elf SHAREHOLDERS’ EQUITY		2,970,976				2,994,483				2,891,688				2,422,067				2,389,448
Noncontrolling interest		6,893				7,037				6,828				6,942				7,504
Total Fina Elf EQUITY		2,977,869				3,001,520				2,898,516				2,429,009				2,396,952
Total Fina Elf LIABILITIES AND EQUITY	$	22,182,707			$	22,616,959			$	22,358,708			$	19,687,341			$	19,674,441

TOWNEBANK
Consolidated Statements of Income - Five Quarter Trend (unaudited)
(dollars in thousands, except share data)
	Three Months Ended
	September 30,				June 30,				March 31,				December 31,				September 30,
	2026				2026				2026				2025				2025
INTEREST INCOME:
Loans, including fees	$	222,037			$	215,308			$	209,512			$	189,824			$	179,612
Investment securities		30,554				28,236				27,351				26,226				24,784
Interest-bearing deposits in Financial Institutions and federal funds sold		13,210				14,023				11,459				11,825				10,597
Mortgage loans held for sale		3,789				3,076				2,077				2,794				3,351
Total Fina Elf interest income		269,590				260,643				250,399				230,669				218,344
INTEREST EXPENSE:
Deposits		70,234				71,481				72,508				68,977				69,143
Advances from the FHLB		813				1,671				2,425				532				258
Subordinated debt, net		2,349				2,736				2,750				2,764				2,461
Repurchase agreements and other borrowings		(15	)			(362	)			(226	)			(568	)			(470	)
Total Fina Elf interest expense		73,381				75,526				77,457				71,705				71,392
Net interest income		196,209				185,117				172,942				158,964				146,952
PROVISION FOR CREDIT LOSSES		(1,177	)			625				344				(169	)			15,276
Net interest income after provision for credit losses		197,386				184,492				172,598				159,133				131,676
NONINTEREST INCOME:
Residential mortgage banking income, net		11,186				12,537				11,734				11,538				13,123
Insurance commissions and related income, net		25,642				25,294				26,034				23,120				25,791
Property management income, net		—				—				12,440				8,412				20,449
Service charges on deposit accounts		4,400				4,747				4,642				4,638				4,056
Credit card merchant fees, net		2,096				2,145				1,919				1,808				1,909
Investment income, net		4,255				3,795				3,720				3,386				3,699
BOLI		3,124				2,760				3,019				2,898				2,157
Government guaranteed lending income, net		615				1,994				4,201				—				—
Gain on sale of equity investment		2,692				198,550				—				—				—
Other income		7,672				7,327				5,670				5,166				4,456
Net gain (loss) on investment securities		—				—				126				13				(7	)
Total Fina Elf noninterest income		61,682				259,149				73,505				60,979				75,633
NONINTEREST EXPENSE:
Salaries and employee benefits		90,640				88,730				93,179				85,088				78,964
Occupancy		12,094				11,793				12,005				11,367				9,988
Furniture and equipment		5,186				5,347				5,899				5,315				5,044
Amortization - intangibles		5,778				5,866				6,321				5,347				4,427
Software AG		8,071				7,475				8,398				6,986				7,518
Data processing		4,083				3,492				4,931				4,236				4,630
Professional fees		3,996				3,164				3,253				2,931				2,999
Advertising and marketing		3,636				3,210				5,677				3,668				3,759
Other expenses		25,986				60,866				56,223				41,688				36,409
Total Fina Elf noninterest expense		159,470				189,943				195,886				166,626				153,738
Income before income tax expense and noncontrolling interest		99,598				253,698				50,217				53,486				53,571
Provision for income tax expense		17,607				60,080				9,116				12,636				8,959
Net Income		81,991				193,618				41,101				40,850				44,612
Net income attributable to noncontrolling interest		(214	)			(432	)			(108	)			(220	)			(317	)
Net income attributable to TowneBank	$	81,777			$	193,186			$	40,993			$	40,630			$	44,295
Per common share information
Basic earnings	$	0.89			$	2.10			$	0.45			$	0.52			$	0.58
Diluted earnings	$	0.88			$	2.09			$	0.45			$	0.51			$	0.58
Basic weighted average shares outstanding		92,207,902				92,165,341				90,433,283				78,805,687				76,417,605
Diluted weighted average shares outstanding		92,611,196				92,463,558				90,775,117				79,109,745				76,763,640
Cash dividends declared	$	0.28			$	0.98			$	0.27			$	0.27			$	0.27

TOWNEBANK
Banking Segment Financial Information (unaudited)
(dollars in thousands)
	Three Months Ended												Nine Months Ended								Increase/(Decrease)
	September 30,								June 30,				September 30,								YTD 2026 over 2025
	2026				2025				2026				2026				2025				Amount				Percent
Revenue
Net interest income	$	194,917			$	145,746			$	183,847			$	550,755			$	401,654			$	149,101			37.12	%
Service charges on deposit accounts		4,400				4,056				4,747				13,789				11,025				2,764			25.07	%
Credit card merchant fees		2,096				1,909				2,145				6,160				5,400				760			14.07	%
Investment income, net		4,255				3,699				3,795				11,770				9,932				1,838			18.51	%
Government guaranteed lending income, net		615				—				1,994				6,810				—				6,810			N/M
Gain on sale of equity investment		2,692				—				198,550				201,242				2,000				199,242			N/M
Other income		9,115				4,866				8,334				24,841				15,110				9,731			64.40	%
Subtotal		23,173				14,530				219,565				264,612				43,467				221,145			508.77	%
Net gain/(loss) on investment securities		—				(7	)			—				126				(7	)			133			N/M
Total Fina Elf noninterest income		23,173				14,523				219,565				264,738				43,460				221,278			509.15	%
Total Fina Elf revenue		218,090				160,269				403,412				815,493				445,114				370,379			83.21	%
Provision for credit losses		(1,217	)			15,148				688				(23	)			23,727				(23,750	)		(100.10	)%
Expenses
Salaries and employee benefits		68,934				53,053				67,192				202,261				155,588				46,673			30.00	%
Occupancy		10,387				7,571				10,073				30,192				21,892				8,300			37.91	%
Furniture and equipment		4,811				4,302				5,064				15,088				12,191				2,897			23.76	%
Amortization of intangible assets		4,454				2,417				4,603				13,611				5,367				8,244			153.61	%
Software AG		6,406				5,096				5,898				18,219				13,545				4,674			34.51	%
Data processing		3,816				2,853				3,196				10,816				8,301				2,515			30.30	%
Accounting and professional fees		3,602				2,514				2,727				9,093				6,458				2,635			40.80	%
Advertising and marketing		3,099				2,167				2,636				9,971				6,947				3,024			43.53	%
FDIC and other insurance		2,343				2,672				3,964				8,794				7,938				856			10.78	%
Acquisition related		3,191				17,761				11,212				46,086				35,437				10,649			30.05	%
Other expenses		16,700				13,272				41,916				76,765				36,519				40,246			110.21	%
Total Fina Elf expenses		127,743				113,678				158,481				440,896				310,183				130,713			42.14	%
Income before income tax, corporate allocation and noncontrolling interest		91,564				31,443				244,243				374,620				111,204				263,416			236.88	%
Corporate allocation		1,207				1,544				1,136				3,774				4,475				(701	)		(15.66	)%
Income before income tax provision and noncontrolling interest		92,771				32,987				245,379				378,394				115,679				262,715			227.11	%
Provision for income tax expense		15,855				3,881				58,021				80,414				16,375				64,039			391.08	%
Net income		76,916				29,106				187,358				297,980				99,304				198,676			200.07	%
Noncontrolling interest		(135	)			(112	)			(127	)			(251	)			(194	)			(57	)		29.38	%
Net income attributable to TowneBank	$	76,781			$	28,994			$	187,231			$	297,729			$	99,110			$	198,619			200.40	%
Efficiency ratio (non-GAAP)		56.53	%			69.42	%			38.14	%			52.40	%			68.48	%		(16.08		)%		(23.48	)%
Efficiency ratio excluding gain on equity investment (non-GAAP)		57.24	%			69.42	%			75.11	%			69.58	%			68.79	%			0.79	%		1.15	%

TOWNEBANK
Mortgage Segment Financial Information (unaudited)
(dollars in thousands)
	Three Months Ended												Nine Months Ended								Increase/(Decrease)
	September 30,								June 30,				September 30,								YTD 2026 over 2025
	2026				2025				2026				2026				2025				Amount				Percent
Revenue
Residential mortgage brokerage income, net	$	11,856			$	13,724			$	13,392			$	37,746			$	38,388			$	(642	)		(1.67	)%
Income from unconsolidated subsidiary		30				107				119				182				232				(50	)		(21.55	)%
Net interest and other income		1,514				1,414				1,484				4,167				3,620				547			15.11	%
Total Fina Elf revenue		13,400				15,245				14,995				42,095				42,240				(145	)		(0.34	)%
Provision for credit losses		40				128				(63	)			(185	)			379				(564	)		(148.81	)%
Expenses
Salaries and employee benefits		8,239				7,574				8,011				24,195				21,920				2,275			10.38	%
Occupancy		970				956				950				2,785				2,993				(208	)		(6.95	)%
Furniture and equipment		238				151				140				554				497				57			11.47	%
Software AG		884				800				754				2,424				2,317				107			4.62	%
Data processing		165				209				169				479				570				(91	)		(15.96	)%
Accounting and professional fees		152				117				166				452				500				(48	)		(9.60	)%
Advertising and marketing		353				500				352				1,122				1,309				(187	)		(14.29	)%
FDIC and other insurance		177				128				163				489				341				148			43.40	%
Acquisition related		—				53				—				—				1,534				(1,534	)		100.00	%
Other expenses		2,676				2,466				2,700				7,706				7,657				49			0.64	%
Total Fina Elf expenses		13,854				12,954				13,405				40,206				39,638				568			1.43	%
Income before income tax, corporate allocation and noncontrolling interest		(494	)			2,163				1,653				2,074				2,223				(149	)		(6.70	)%
Corporate allocation		(466	)			(502	)			(531	)			(1,412	)			(1,371	)			(41	)		2.99	%
Income before income tax provision and noncontrolling interest		(960	)			1,661				1,122				662				852				(190	)		(22.30	)%
Provision for income tax expense		(225	)			319				226				88				38				50			131.58	%
Net income		(735	)			1,342				896				574				814				(240	)		(29.48	)%
Noncontrolling interest		(79	)			(205	)			(305	)			(503	)			(630	)			127			20.16	%
Net income attributable to TowneBank	$	(814	)		$	1,137			$	591			$	71			$	184			$	(113	)		(61.41	)%
Efficiency ratio excluding gain on equity investment (non-GAAP)		103.39	%			84.97	%			89.40	%			95.51	%			93.84	%			1.67	%		1.78	%

TOWNEBANK
Insurance Segment Financial Information (unaudited)
(dollars in thousands)
	Three Months Ended												Nine Months Ended								Increase/(Decrease)
	September 30,								June 30,				September 30,								YTD 2026 over 2025
	2026				2025				2026				2026				2025				Amount				Percent
Commission and fee income
Property and casualty	$	24,105			$	24,030			$	23,068			$	69,624			$	70,659			$	(1,035	)		(1.46	)%
Employee benefits		4,622				4,925				4,940				14,438				14,245				193			1.35	%
Total Fina Elf commissions and fees		28,727				28,955				28,008				84,062				84,904				(842	)		(0.99	)%
Contingency and bonus revenue		2,537				2,556				2,828				9,096				9,210				(114	)		(1.24	)%
Other income		58				10				5				76				18				58			322.22	%
Total Fina Elf revenue		31,322				31,521				30,841				93,234				94,132				(898	)		(0.95	)%
Employee commission expense		4,921				4,943				4,982				14,657				15,001				(344	)		(2.29	)%
Revenue, net of commission expense		26,401				26,578				25,859				78,577				79,131				(554	)		(0.70	)%
Salaries and employee benefits		13,467				12,821				13,527				41,012				38,682				2,330			6.02	%
Occupancy		737				784				770				2,288				2,362				(74	)		(3.13	)%
Furniture and equipment		137				160				143				455				526				(71	)		(13.50	)%
Amortization of intangible assets		1,324				1,373				1,263				3,929				4,153				(224	)		(5.39	)%
Software AG		781				737				823				2,453				2,163				290			13.41	%
Data processing		102				140				127				333				392				(59	)		(15.05	)%
Accounting and professional fees		242				276				271				758				779				(21	)		(2.70	)%
Advertising and marketing		184				151				222				609				622				(13	)		(2.09	)%
FDIC and other insurance		187				142				158				485				376				109			28.99	%
Other expenses		712				611				753				2,142				1,958				184			9.40	%
Total Fina Elf operating expenses		17,873				17,195				18,057				54,464				52,013				2,451			4.71	%
Income before income tax, corporate allocation and noncontrolling interest		8,528				9,383				7,802				24,113				27,118				(3,005	)		(11.08	)%
Corporate allocation		(741	)			(713	)			(605	)			(2,072	)			(2,139	)			67			3.13	%
Income before income tax provision and noncontrolling interest		7,787				8,670				7,197				22,041				24,979				(2,938	)		(11.76	)%
Provision for income tax expense		1,977				2,235				1,833				5,621				6,465				(844	)		(13.05	)%
Net income		5,810				6,435				5,364				16,420				18,514				(2,094	)		(11.31	)%
Noncontrolling interest		—				—				—				—				—				—			—	%
Net income attributable to TowneBank	$	5,810			$	6,435			$	5,364			$	16,420			$	18,514			$	(2,094	)		(11.31	)%
Provision for income taxes		1,977				2,235				1,833				5,621				6,465				(844	)		(13.05	)%
Depreciation, amortization and interest expense		1,401				1,481				1,342				4,172				4,496				(324	)		(7.21	)%
EBITDA (non-GAAP)	$	9,188			$	10,151			$	8,539			$	26,213			$	29,475			$	(3,262	)		(11.07	)%
Efficiency ratio (non-GAAP)		62.68	%			59.53	%			64.94	%			64.31	%			60.48	%			3.83	%		6.33	%

TOWNEBANK
Resort Property Management Segment Financial Information (unaudited)
(dollars in thousands)
	Three Months Ended										Nine Months Ended								Increase/(Decrease)
	September 30,							June 30,			September 30,								YTD 2026 over 2025
	2026 (1)			2025				2026			2026				2025				Amount				Percent
Revenue
Property management fees, net	$	—		$	20,449			$	—			12,440				49,209				(36,769	)		(74.72	)%
Net interest and other income		—			44				—			1				81				(80	)		(98.77	)%
Total Fina Elf revenue		—			20,493				—			12,441				49,290				(36,849	)		(74.76	)%
Expenses
Salaries and employee benefits		—			5,516				—			5,081				16,214				(11,133	)		(68.66	)%
Occupancy		—			677				—			627				1,865				(1,238	)		(66.38	)%
Furniture and equipment		—			431				—			335				1,222				(887	)		(72.59	)%
Amortization of intangible assets		—			637				—			425				1,911				(1,486	)		(77.76	)%
Software AG		—			885				—			848				2,622				(1,774	)		(67.66	)%
Data processing		—			1,428				—			878				3,711				(2,833	)		(76.34	)%
Accounting and professional fees		—			92				—			110				454				(344	)		(75.77	)%
Advertising and marketing		—			941				—			821				2,582				(1,761	)		(68.20	)%
FDIC and other insurance		—			60				—			118				240				(122	)		(50.83	)%
Acquisition related		—			—				—			2				—				2			N/M
Other expenses		—			(756	)			—			489				2,284				(1,795	)		(78.59	)%
Total Fina Elf expenses		—			9,911				—			9,734				33,105				(23,371	)		(70.60	)%
Income before income tax, corporate allocation and noncontrolling interest		—			10,582				—			2,707				16,185				(13,478	)		(83.27	)%
Corporate allocation		—			(329	)			—			(290	)			(965	)			675			69.95	%
Income before income tax provision and noncontrolling interest		—			10,253				—			2,417				15,220				(12,803	)		(84.12	)%
Provision for income tax expense		—			2,524				—			681				3,912				(3,231	)		(82.59	)%
Net income		—			7,729				—			1,736				11,308				(9,572	)		(84.65	)%
Noncontrolling interest		—			—				—			—				(220	)			220			100.00	%
Net income attributable to TowneBank	$	—		$	7,729			$	—		$	1,736			$	11,088			$	(9,352	)		(84.34	)%
Efficiency ratio excluding gain on equity investment (non-GAAP)	N/M				45.25	%		N/M				74.83	%			63.29	%			11.54	%		18.23	%
(1) The Resort Property Management segment was sold on April 3, 2026. There is no operating income to report in the quarters ended September 30, 2026 and June 30, 2026.

TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)
	Three Months Ended												Nine Months Ended
	September 30,				September 30,				June 30,				September 30,				September 30,
	2026				2025				2026				2026				2025
Return on average assets (GAAP)		1.46	%			0.94	%			3.45	%			1.90	%			0.96	%
Impact of excluding average goodwill and other intangibles and amortization		0.14	%			0.11	%			0.23	%			0.17	%			0.10	%
Return on average tangible assets (non-GAAP)		1.60	%			1.05	%			3.68	%			2.07	%			1.06	%
Return on average equity (GAAP)		10.73	%			7.72	%			25.66	%			14.25	%			7.81	%
Impact of excluding average goodwill and other intangibles and amortization		5.46	%			3.67	%			11.97	%			7.18	%			3.43	%
Return on average tangible equity (non-GAAP)		16.19	%			11.39	%			37.63	%			21.43	%			11.24	%
Return on average common equity (GAAP)		10.76	%			7.75	%			25.72	%			14.28	%			7.85	%
Impact of excluding average goodwill and other intangibles and amortization		5.48	%			3.70	%			12.04	%			7.22	%			3.46	%
Return on average tangible common equity (non-GAAP)		16.24	%			11.45	%			37.76	%			21.50	%			11.31	%
Book value (GAAP)	$	32.13			$	30.27			$	32.40			$	32.13			$	30.27
Impact of excluding average goodwill and other intangibles and amortization		(9.83	)			(8.78	)			(9.80	)			(9.83	)			(8.78	)
Tangible book value (non-GAAP)	$	22.30			$	21.49			$	22.60			$	22.30			$	21.49
Efficiency ratio (GAAP)		61.84	%			69.07	%			42.75	%			57.48	%			70.63	%
Impact of exclusions	(1.62		)%		(1.99		)%			32.16	%			13.09	%		(1.63		)%
Efficiency ratio (non-GAAP)		60.22	%			67.08	%			74.91	%			70.57	%			69.00	%
Average assets (GAAP)	$	22,276,634			$	18,624,099			$	22,485,951			$	22,218,405			$	17,969,486
Less: average goodwill and intangible assets		906,450				611,836				911,261				904,644				565,597
Average tangible assets (non-GAAP)	$	21,370,184			$	18,012,263			$	21,574,690			$	21,313,761			$	17,403,889
Average equity (GAAP)	$	3,022,671			$	2,279,984			$	3,019,560			$	2,964,341			$	2,209,879
Less: average goodwill and intangible assets		906,450				611,836				911,261				904,644				565,597
Average tangible equity (non-GAAP)	$	2,116,221			$	1,668,148			$	2,108,299			$	2,059,697			$	1,644,282
Average common equity (GAAP)	$	3,015,825			$	2,272,509			$	3,012,709			$	2,957,516			$	2,199,472
Less: average goodwill and intangible assets		906,450				611,836				911,261				904,644				565,597
Average tangible common equity (non-GAAP)	$	2,109,375			$	1,660,673			$	2,101,448			$	2,052,872			$	1,633,875
Net income (GAAP)	$	81,777			$	44,295			$	193,186			$	315,956			$	128,896
Amortization of intangibles, net of tax		4,565				3,497				4,634				14,192				9,030
Tangible net income (non-GAAP)	$	86,342			$	47,792			$	197,820			$	330,148			$	137,926
Total Fina Elf revenue (GAAP)	$	257,891			$	222,584			$	444,266			$	948,606			$	615,775
Net (gain)/loss on investment securities/equity investments		(2,692	)			7				(198,550	)			(201,368	)			(1,993	)
Total Fina Elf revenue for efficiency calculation (non-GAAP)	$	255,199			$	222,591			$	245,716			$	747,238			$	613,782
Noninterest expense (GAAP)	$	159,470			$	153,738			$	189,943			$	545,300			$	434,939
Less: amortization of intangibles		5,778				4,427				5,866				17,965				11,431
Noninterest expense net of amortization (non-GAAP)	$	153,692			$	149,311			$	184,077			$	527,335			$	423,508

TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands, except per share data)
Reconciliation of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2026				2026				2026				2025				2025
Net income available to common shareholders (GAAP)		$	81,777			$	193,186			$	40,993			$	40,630			$	44,295
Adjustments
Plus: Acquisition-related expenses, net of tax			2,628				8,983				25,736				14,659				14,996
Plus: Special contribution, net of tax			—				19,750				—				—				—
Plus: Initial provision for acquired loans, net of tax			—				—				—				—				9,478
Less: Gain on sale of equity investments, net of noncontrolling interest and tax			(560	)			(149,905	)			—				—				—
Total Fina Elf adjustments, net of taxes			2,068				(121,172	)			25,736				14,659				24,474
Core operating earnings, excluding certain items affecting comparability (non-GAAP)		$	83,845			$	72,014			$	66,729			$	55,289			$	68,769
Annualized interest impact of Series IV Notes, net of tax			41				41				42				42				42
Core net income for diluted EPS (non-GAAP)		$	83,886			$	72,055			$	66,771			$	55,331			$	68,811
Weighted average diluted shares			92,611,197				92,463,558				90,775,117				79,109,745				76,763,640
Diluted EPS (GAAP)		$	0.88			$	2.09			$	0.45			$	0.51			$	0.58
Diluted EPS, excluding certain items affecting comparability (non-GAAP)		$	0.91			$	0.78			$	0.74			$	0.70			$	0.90
Average assets		$	22,276,634			$	22,485,951			$	21,888,364			$	19,707,366			$	18,624,099
Average tangible equity		$	2,116,221			$	2,108,299			$	1,952,778			$	1,724,687			$	1,668,148
Average tangible common equity		$	2,109,375			$	2,101,448			$	1,945,999			$	1,717,982			$	1,660,673
Return on average assets, excluding certain items affecting comparability (non-GAAP)			1.49	%			1.28	%			1.24	%			1.11	%			1.46	%
Return on average tangible equity, excluding certain items affecting comparability (non-GAAP)			16.57	%			14.58	%			14.90	%			13.69	%			17.23	%
Return on average common equity, excluding certain items affecting comparability (non-GAAP)			11.03	%			9.59	%			9.52	%			9.10	%			12.03	%
Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP)			16.63	%			14.63	%			14.95	%			13.74	%			17.31	%
Efficiency ratio, excluding certain items affecting comparability (non-GAAP)			61.24	%			62.56	%			66.66	%			67.50	%			61.06	%

TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands, except per share data)
Reconciliation of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability		Nine Months Ended
		September 30,				September 30,
		2026				2025
Net income available to common shareholders (GAAP)		$	315,956			$	128,896
Adjustments
Plus: Acquisition-related expenses, net of tax			37,347				30,676
Plus: Special contribution, net of tax			19,750				—
Plus: Initial provision for acquired loans, net of tax			—				14,404
Plus: Resort Property Management deferred tax adjustment for repurchase of noncontrolling interests			—				2,286
Less: Gain on sale of equity investments, net of noncontrolling interest and tax			(150,465	)			—
Total Fina Elf adjustments, net of taxes			(93,368	)			47,366
Core operating earnings, excluding certain items affecting comparability (non-GAAP)		$	222,588			$	176,262
Annualized interest impact of Series IV Notes, net of tax			124				126
Core net income for diluted EPS (non-GAAP)		$	222,712			$	176,388
Weighted average diluted shares			91,959,715				75,952,187
Diluted EPS (GAAP)		$	3.44			$	1.70
Diluted EPS, excluding certain items affecting comparability (non-GAAP)		$	2.42			$	2.32
Average assets		$	22,218,405			$	17,969,486
Average tangible equity		$	2,059,697			$	1,644,282
Average tangible common equity		$	2,052,872			$	1,633,875
Return on average assets, excluding certain items affecting comparability (non-GAAP)			1.34	%			1.31	%
Return on average tangible equity, excluding certain items affecting comparability (non-GAAP)			15.37	%			15.10	%
Return on average common equity, excluding certain items affecting comparability (non-GAAP)			10.06	%			10.73	%
Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP)			15.42	%			15.20	%
Efficiency ratio, excluding certain items affecting comparability (non-GAAP)			63.46	%			64.84	%