Patriot Financial Partners GP II L.P. Acquires Shares of 1,518,143 Towne Bank $TOWN

Key Points

• Patriot Financial Partners GP II L.P. disclosed a new stake in Towne Bank, buying 1,518,143 shares worth about $51.1 million. The position makes TOWN its 3rd-largest holding and represents about 1.92% of the bank.
• Towne Bank reported quarterly EPS of $0.74, matching estimates, while revenue came in at $247.62 million versus expectations of $274.02 million. The bank also posted 34.6% year-over-year revenue growth.
• The company raised its quarterly dividend to $0.28 per share, or $1.12 annually, for a 3.1% yield. Analysts currently rate the stock a Moderate Buy with a consensus price target of $39.50.

Patriot Financial Partners GP II L.P. acquired a new position in shares of Towne Bank (NASDAQ:TOWN - Free Report) during the 1st quarter, according to its most recent 13F filing with the SEC. The fund acquired 1,518,143 shares of the bank's stock, valued at approximately $51,116,000. Towne Bank comprises 13.2% of Patriot Financial Partners GP II L.P.'s investment portfolio, making the stock its 3rd biggest holding. Patriot Financial Partners GP II L.P. owned approximately 1.92% of Towne Bank at the end of the most recent quarter.

Other institutional investors have also modified their holdings of the company. AQR Capital Management LLC grew its position in shares of Towne Bank by 32.3% during the 1st quarter. AQR Capital Management LLC now owns 34,996 shares of the bank's stock valued at $1,197,000 after buying an additional 8,538 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Towne Bank by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 41,837 shares of the bank's stock valued at $1,430,000 after purchasing an additional 1,837 shares in the last quarter. Millennium Management LLC lifted its stake in shares of Towne Bank by 56.6% in the 1st quarter. Millennium Management LLC now owns 381,761 shares of the bank's stock worth $13,052,000 after acquiring an additional 137,988 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Towne Bank by 4.7% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 157,713 shares of the bank's stock valued at $5,392,000 after purchasing an additional 7,115 shares during the period. Finally, Jane Street Group LLC raised its position in Towne Bank by 1,220.9% in the first quarter. Jane Street Group LLC now owns 157,411 shares of the bank's stock worth $5,382,000 after acquiring an additional 145,494 shares in the last quarter. Institutional investors and hedge funds own 55.99% of the company's stock.

Towne Bank Trading Down 1.2%

Towne Bank stock opened at $36.56 on Friday. Towne Bank has a one year low of $31.91 and a one year high of $37.86. The company's fifty day moving average price is $35.06 and its two-hundred day moving average price is $34.91. The company has a debt-to-equity ratio of 0.07, a current ratio of 0.89 and a quick ratio of 0.88. The company has a market capitalization of $2.89 billion, a price-to-earnings ratio of 18.46 and a beta of 0.69.

Towne Bank (NASDAQ:TOWN - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The bank reported $0.74 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.74. The company had revenue of $247.62 million during the quarter, compared to the consensus estimate of $274.02 million. Towne Bank had a return on equity of 9.91% and a net margin of 13.51%.The firm's revenue was up 34.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.68 EPS. On average, analysts forecast that Towne Bank will post 3.12 earnings per share for the current fiscal year.

Towne Bank Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, July 10th. Shareholders of record on Friday, June 26th were issued a dividend of $0.28 per share. This represents a $1.12 annualized dividend and a yield of 3.1%. This is a boost from Towne Bank's previous quarterly dividend of $0.27. The ex-dividend date was Friday, June 26th. Towne Bank's dividend payout ratio is 56.57%.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on TOWN. Zacks Research raised shares of Towne Bank from a "strong sell" rating to a "hold" rating in a research report on Monday, June 29th. Weiss Ratings raised Towne Bank from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday. Keefe, Bruyette & Woods reiterated a "market perform" rating and set a $38.00 price target (down from $42.00) on shares of Towne Bank in a report on Wednesday, May 6th. Finally, Hovde Group lowered their price target on Towne Bank from $42.00 to $41.00 and set an "outperform" rating for the company in a research note on Monday, April 27th. Two research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $39.50.

Towne Bank Company Profile

TowneBank is a Virginia‐based financial services company organized as a bank holding company. Its primary subsidiary, TowneBank, operates a network of community banking offices and mortgage production facilities. The company offers a comprehensive range of commercial and consumer banking solutions, including deposit accounts, lending products, treasury management, and private banking services tailored to individuals, small businesses, and middle‐market corporations.

In addition to traditional banking, TowneBank provides specialty services through affiliated subsidiaries.

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