TowneBank Reports Third Quarter 2025 Earnings

SUFFOLK, Va., Oct. 22, 2025 (GLOBE NEWSWIRE) -- TowneBank (the "Company" or "Towne") (NASDAQ: TOWN) today reported earnings for the quarter ended September 30, 2025 of $38.98 million, or $0.51 per diluted share, compared to $42.95 million, or $0.57 per diluted share, for the quarter ended September 30, 2024. Excluding certain items affecting comparability, core earnings (non-GAAP) were $63.45 million, or $0.83 per diluted share, in the current quarter compared to $43.39 million, or $0.58 per diluted share, for the quarter ended September 30, 2024.

"We delivered another strong quarter with total revenue up nearly 24% year-over-year. During the period, we announced a new partnership with Dogwood and completed the Old Point acquisition. Our disciplined approach, partnering with leading organizations in high growth markets, continues to drive earnings momentum, reflected in a 3.50% tax-equivalent margin. Towne’s resilient business model and flexible balance sheet position us well to navigate an uncertain economic environment," said G. Robert Aston, Jr., Executive Chairman.

Highlights for Third Quarter 2025:

Towne successfully completed the acquisition of Old Point Financial Corporation ("Old Point"), the parent company of The Old Point National Bank of Phoebus ("Old Point National Bank"), in September 2025. Included in that acquisition were $961.35 million in loans, $208.83 million in securities, and $1.21 billion in deposits.As previously announced, Towne successfully completed the acquisition of Village Bank and Trust Financial Corp. and its wholly-owned bank subsidiary, Village Bank ("Village"), in April 2025. Included in that acquisition were $576.51 million in loans, $74.31 million in securities, and $637.49 million in deposits.Total revenues were $215.67 million, an increase of $41.15 million, or 23.58%, compared to third quarter 2024. Net interest income increased $34.67 million, driven by a combination of increased interest income and lower deposit costs, and noninterest income increased $6.48 million.Total deposits were $16.53 billion, an increase of $2.17 billion, or 15.09%, compared to third quarter 2024. Total deposits increased 7.84%, or $1.20 billion, in comparison to June 30, 2025. Excluding $1.21 billion in Old Point acquired deposits, total deposits would have increased $0.96 billion, or 6.66% compared to the prior year but declined $9.67 million, compared to the linked quarter. Noninterest-bearing deposits increased 20.43%, to $5.14 billion, compared to third quarter 2024 and represented 31.09% of total deposits. Compared to the linked quarter, noninterest-bearing deposits increased 8.10%, including $306.07 million acquired from Old Point.Loans held for investment were $13.38 billion, an increase of $1.97 billion, or 17.23%, compared to September 30, 2024, and $1.02 billion, or 8.25% compared to June 30, 2025. Excluding loans acquired in the quarter, total loans would have increased $1.01 billion, or 8.81%, compared to the prior year and $58.01 million, or 1.86% on an annualized basis, compared to the linked quarter.Annualized return on common shareholders' equity was 6.80% compared to 8.18% in third quarter 2024. Annualized return on average tangible common shareholders' equity (non-GAAP) was 10.15% compared to 11.54% in third quarter 2024.Net interest margin was 3.48% for the quarter and tax-equivalent net interest margin (non-GAAP) was 3.50%, including purchase accounting accretion of 8 basis points, compared to the prior year quarter net interest margin of 2.90% and tax-equivalent net interest margin (non-GAAP) of 2.93%, including purchase accounting accretion of 3 basis points.Compared to the linked quarter, which included purchase accounting accretion of 6 basis points, net interest margin increased 10 basis points and spread increased 11 basis points.The effective tax rate was 15.88% in the quarter compared to 11.52% in third quarter 2024 and 22.23% in the linked quarter. The increase in the effective rate from third quarter 2024 to 2025 was due to an increase in state tax expense and nondeductible expenses related to the Old Point acquisition. The lower effective tax rate in the current quarter compared to prior quarter was primarily due to LIHTC investment properties placed in service during the period and the prior quarter nonrecurring adjustment to deferred income tax related to the repurchase of noncontrolling interests in Resort Property Management.

"We’re excited to have completed most of the Village integration and system conversions, marking a major milestone for our team. Our immediate priority is to finalize the Dogwood partnership and integrate Old Point systems which we expect could occur in the first quarter of 2026. Looking ahead, we anticipate scheduling the Dogwood system integration in the second half of 2026. I want to express my sincere gratitude to our dedicated teammates whose leadership and commitment to our mission of Serving Others and Enriching Lives make these achievements possible," stated William I. Foster III, President and Chief Executive Officer.

Quarterly Net Interest Income:

Net interest income was $146.95 million in third quarter 2025 compared to $112.28 million for the quarter ended September 30, 2024.On an average basis, loans held for investment, with a yield of 5.65%, represented 75.52% of earning assets at September 30, 2025 compared to a yield of 5.46% and 74.16% of earning assets at September 30, 2024.The cost of interest-bearing deposits was 2.55% for the quarter ended September 30, 2025, compared to 3.28% in second quarter 2024. Interest expense on deposits decreased $12.99 million, or 15.81%, from the prior year quarter driven by decreases in rate.Our total cost of deposits decreased to 1.75% from 2.29% for the quarter ended September 30, 2024 due to lower interest-bearing deposit rates, as short-term Treasury rates continued to fall.Average interest-earning assets totaled $16.77 billion at September 30, 2025 compared to $15.40 billion at September 30, 2024, an increase of 8.89%.Average interest-bearing liabilities totaled $11.07 billion, an increase of $0.82 billion, or 8.01%, from prior year, driven by demand and money market deposit growth. Borrowings increased by $68.12 million over the linked quarter, driven by debt assumed in the Old Point acquisition.

Quarterly Provision for Credit Losses:

The quarterly provision for credit losses was an expense of $15.28 million compared to a benefit of $1.10 million in the prior year quarter and an expense of $6.41 million in the linked quarter. The provision includes an initial provision for credit losses of $12.00 million related to loans and commitments acquired in the Old Point transaction.The allowance for credit losses on loans increased $14.99 million in third quarter 2025, compared to the linked quarter, $13.50 million of which resulted from the September 2025 acquisition of Old Point. In addition to the $11.45 million initial acquisition related provision for the purchased loan portfolio we increased our allowance $2.05 million for purchased credit deteriorated loan marks. Additional allowance increases were primarily driven by loan portfolio growth.Net loan charge-offs were $254 thousand in the quarter, $19 thousand in the linked quarter, and $677 thousand in the prior year quarter.The ratio of net charge-offs to average loans on an annualized basis was 0.01% in third quarter 2025, 0.02% in third quarter 2024, and 0.00% in the linked quarter.The allowance for credit losses on loans represented 1.11% of total loans at September 30, 2025, compared to 1.08% at September 30, 2024, and 1.09% at June 30, 2025. The allowance for credit losses on loans was 19.38 times nonperforming loans compared to 18.70 times at September 30, 2024 and 16.81 times at June 30, 2025.

Quarterly Noninterest Income:

Total noninterest income was $68.71 million compared to $62.24 million in 2024, an increase of $6.48 million, or 10.41%.Property management fee revenue increased $2.31 million, or 20.57%, to $13.53 million in third quarter 2025, compared to third quarter 2024. The increase was driven by changes to our fee structure resulting in revenue growth.Residential mortgage banking income was $13.12 million compared to $11.79 million in third quarter 2024. Loan volume increased to $636.36 million in third quarter 2025 from $598.18 million in third quarter 2024. Residential purchase activity was 91.84% of production volume in the third quarter of 2025 compared to 91.49% in third quarter 2024.Gross margins on residential mortgage sales increased 19 basis points to 3.32%, from the linked quarter and 4 basis points from 3.28% in third quarter 2024.Investment income, net, increased 1.10 million, or 38.73%, from third quarter 2024, $0.50 million of this increase was attributable to the acquisition of Old Point.

Quarterly Noninterest Expense:

Total noninterest expense was $153.74 million compared to $126.90 million in 2024, an increase of $26.84 million, or 21.15%. This increase was primarily attributable to acquisition-related expenses and growth in salaries and employee benefits.The acquisitions of Village and Old Point, and the pending acquisition of Dogwood State Bank, which is expected to be completed first quarter 2026, resulted in $17.81 million in acquisition-related expenses in the quarter.An increase in banking personnel related to the Village and Old Point acquisitions represented $3.03 million of the $6.84 million increase in salaries and benefits expenses, compared to the prior year quarter. Additional contributing factors were annual base salary adjustments that went into effect October 2024 and higher performance-based incentives.

Consolidated Balance Sheet Highlights:

Total assets were $19.68 billion for the quarter ended September 30, 2025, a $1.42 billion increase compared to $18.26 billion at June 30, 2025. Total assets increased $2.49 billion, or 14.51%, from $17.19 billion at September 30, 2024.Loans held for investment increased $1.97 billion, or 17.23%, compared to prior year and $1.02 billion, or 8.25%, compared to the linked quarter. The Company continues to maintain a strong credit discipline.Mortgage loans held for sale decreased $51.81 million, or 19.60%, compared to prior year and $26.24 million, or 10.99%, compared to the linked quarter, driven by production seasonality.Total deposits increased $2.17 billion, or 15.09%, compared to prior year, driven by acquisition-related increases in both noninterest bearing and interest-bearing demand deposits. In the linked quarter comparison, total deposits increased $1.20 billion, or 7.84%.Noninterest-bearing deposits increased $871.86 million, or 20.43%, compared to prior year and $385.15 million, or 8.10%, compared to the linked quarter.Total borrowings increased $71.41 million, or 24.56%, compared to third quarter 2024 and $68.12 million, or 23.16%, compared to the linked quarter, due to acquired FHLB borrowings and subordinated debt.

Investment Securities:

Total investment securities were $2.87 billion compared to $2.78 billion at June 30, 2025 and $2.60 billion at September 30, 2024. The weighted average duration of the portfolio at September 30, 2025 was 3.2 years. The carrying value of the available-for-sale debt securities portfolio included net unrealized losses of $87.87 million at September 30, 2025, compared to $113.14 million at June 30, 2025 and $110.62 million at September 30, 2024, with the changes in fair value marks due to the change in interest rates.

Loans and Asset Quality:

Total loans held for investment were $13.38 billion at September 30, 2025, $12.36 billion at June 30, 2025, and $11.41 billion at September 30, 2024. Excluding loans acquired in the quarter, total loans would have increased $1.01 billion, or 8.81%, compared to the prior year and $58.01 million, or 1.86% on an annualized basis, compared to the linked quarter.Nonperforming assets were $10.38 million, or 0.05% of total assets, compared to $7.47 million, or 0.04%, at September 30, 2024, and $9.29 million, or 0.05%, at the linked quarter end.Nonperforming loans were 0.06% of period end loans at September 30, 2025, September 30, 2024, and the linked quarter end.Foreclosed property consisted of $712 thousand in other real estate owned, $885 thousand in former bank premises and $1.09 million in repossessed autos, for a total of $2.68 million in foreclosed property at September 30, 2025, compared to $884 thousand in repossessed autos at September 30, 2024.

Deposits and Borrowings:

Total deposits were $16.53 billion compared to $15.33 billion at June 30, 2025 and $14.36 billion at September 30, 2024. Excluding $1.21 billion in acquired deposits, total deposits would have increased $0.96 billion, or 6.66%, compared to the prior year but declined $9.67 million, or 0.25% on an annualized basis from the linked quarter.The ratio of period end loans held for investment to deposits was 80.93% compared to 80.63% at June 30, 2025 and 79.46% at September 30, 2024.Noninterest-bearing deposits were 31.09% of total deposits at September 30, 2025 compared to 31.02% at June 30, 2025 and 29.71% at September 30, 2024. Noninterest-bearing deposits increased $0.87 billion, or 20.43%, compared to September 30, 2024, and $385.15 million, or 8.10%, compared to the linked quarter.Total borrowings were $362.23 million compared to $294.12 million at June 30, 2025 and $290.82 million at September 30, 2024.

Capital:

Common equity tier 1 capital ratio of 11.18%(1).Tier 1 leverage capital ratio of 9.84%(1).Tier 1 risk-based capital ratio of 11.23%(1).Total risk-based capital ratio of 13.99% (1).Book value per common share was $30.38 compared to $29.58 at June 30, 2025 and $28.59 at September 30, 2024.Tangible book value per common share (non-GAAP) was $21.59 compared to $21.98 at June 30, 2025 and $21.65 at September 30, 2024.

(1) Preliminary.

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 60 banking offices throughout Hampton Roads and Central Virginia, as well as Northeastern and Central North 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 Vacations. With total assets of $19.68 billion as of September 30, 2025, 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 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, such as the 2023 bank failures, 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, that may adversely affect our business; our ability to successfully integrate the businesses from recently completed and pending acquisitions, including our recent merger with Old Point Financial Corporation and our pending merger with Dogwood State Bank ("Dogwood"), to the extent that it may take longer or be more difficult, time-consuming, or costly to accomplish than expected; our ability to close the transaction with Dogwood 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 related matters; 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, 2024 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

TOWNEBANKSelected Financial Highlights (unaudited)(dollars in thousands, except per share data) Three Months Ended September 30, June 30, March 31, December 31, September 30, 2025 2025 2025 2024 2024 Income and Performance Ratios: Total revenue$215,665 $207,442 $192,044 $177,160 $174,518 Net income 39,294 39,269 50,887 41,441 43,126 Net income available to common shareholders 38,977 38,837 50,592 41,265 42,949 Net income per common share - diluted 0.51 0.51 0.67 0.55 0.57 Book value per common share 30.38 29.58 29.19 28.43 28.59 Book value per common share - tangible (non-GAAP) 21.59 21.98 22.36 21.55 21.65 Return on average assets 0.83% 0.86% 1.19% 0.95% 1.00% Return on average assets - tangible (non-GAAP) 0.94% 0.96% 1.29% 1.03% 1.09% Return on average equity 6.78% 7.12% 9.50% 7.64% 8.12% Return on average equity - tangible (non-GAAP) 10.10% 10.39% 13.08% 10.68% 11.42% Return on average common equity 6.80% 7.14% 9.57% 7.70% 8.18% Return on average common equity - tangible (non-GAAP) 10.15% 10.44% 13.21% 10.79% 11.54% Noninterest income as a percentage of total revenue 31.86% 33.85% 37.27% 33.36% 35.66%Regulatory Capital Ratios (1): Common equity tier 1 11.18% 11.77% 12.75% 12.77% 12.63% Tier 1 11.23% 11.82% 12.87% 12.89% 12.76% Total 13.99% 14.49% 15.65% 15.68% 15.54% Tier 1 leverage ratio 9.84% 9.93% 10.61% 10.36% 10.38%Asset Quality: Allowance for credit losses on loans to nonperforming loans 19.38x 16.81x 19.15x 16.69x 18.70x Allowance for credit losses on loans to period end loans 1.11% 1.09% 1.08% 1.08% 1.08% Nonperforming loans to period end loans 0.06% 0.06% 0.06% 0.06% 0.06% Nonperforming assets to period end assets 0.05% 0.05% 0.04% 0.05% 0.04% Net charge-offs (recoveries) to average loans (annualized) 0.01% —% 0.02% 0.01% 0.02% Net charge-offs (recoveries)$254 $19 $626 $382 $677 Nonperforming loans$7,698 $7,982 $6,586 $7,424 $6,588 Former bank premises 885 — — — — Foreclosed property 1,798 1,306 786 443 884 Total nonperforming assets$10,381 $9,288 $7,372 $7,867 $7,472 Loans past due 90 days and still accruing interest$1,863 $210 $15 $1,264 $510 Allowance for credit losses on loans$149,175 $134,187 $126,131 $123,923 $123,191 Mortgage Banking: Loans originated, mortgage$491,921 $494,108 $300,699 $385,238 $421,571 Loans originated, joint venture 144,440 177,359 144,495 180,188 176,612 Total loans originated$636,361 $671,467 $445,194 $565,426 $598,183 Number of loans originated 1,679 1,750 1,181 1,489 1,637 Number of originators 169 166 161 160 159 Purchase % 91.84% 92.37% 89.94% 89.46% 91.49% Loans sold$657,822 $596,009 $475,518 $629,120 $526,998 Rate lock asset$2,213 $2,186 $1,880 $1,150 $1,548 Gross realized gain on sales and fees as a % of loans originated 3.32% 3.13% 3.18% 3.25% 3.28%Other Ratios: Net interest margin 3.48% 3.38% 3.14% 2.99% 2.90% Net interest margin-fully tax-equivalent (non-GAAP) 3.50% 3.40% 3.17% 3.02% 2.93% Average earning assets/total average assets 90.03% 90.23% 90.32% 90.57% 90.43% Average loans/average deposits 80.92% 81.09% 80.01% 78.71% 80.07% Average noninterest deposits/total average deposits 31.30% 30.88% 29.68% 30.14% 30.19% Period end equity/period end total assets 12.22% 12.26% 12.66% 12.50% 12.58% Efficiency ratio (non-GAAP) 69.23% 70.71% 67.10% 70.28% 70.93% (1) Current reporting period regulatory capital ratios are preliminary.

TOWNEBANKSelected Data (unaudited)(dollars in thousands) Investment Securities % Change Q3 Q3 Q2 Q3 25 vs. Q3 25 vs.Available-for-sale securities, at fair value 2025 2024 2025 Q3 24 Q2 25U.S. agency securities$364,889 $291,814 $345,808 25.04% 5.52%U.S. Treasury notes 83,246 28,655 78,746 190.51% 5.71%Municipal securities 478,711 455,722 438,490 5.04% 9.17%Trust preferred and other corporate securities 143,291 91,525 115,126 56.56% 24.46%Mortgage-backed securities issued by GSEs and GNMA 1,599,812 1,496,631 1,577,325 6.89% 1.43%Allowance for credit losses (1,350) (1,171) (1,520) 15.29% (11.18)%Total$2,668,599 $2,363,176 $2,553,975 12.92% 4.49%Gross unrealized gains (losses) reflected in financial statements Total gross unrealized gains$10,741 $6,703 $6,048 60.24% 77.60%Total gross unrealized losses (98,606) (117,319) (119,186) (15.95)% (17.27)%Net unrealized gains (losses) and other adjustments on AFS securities$(87,865) $(110,616) $(113,138) (20.57)% (22.34)%Held-to-maturity securities, at amortized cost U.S. agency securities$68,140 $102,428 $92,973 (33.48)% (26.71)%U.S. Treasury notes 96,017 96,942 96,250 (0.95)% (0.24)%Municipal securities 5,439 5,342 5,414 1.82% 0.46%Trust preferred corporate securities 2,081 2,133 2,094 (2.44)% (0.62)%Mortgage-backed securities issued by GSEs 5,166 5,577 5,201 (7.37)% (0.67)%Allowance for credit losses (65) (77) (67) (15.58)% (2.99)%Total$176,778 $212,345 $201,865 (16.75)% (12.43)% Total gross unrealized gains$283 $323 $214 (12.38)% 32.24%Total gross unrealized losses (3,746) (7,929) (5,148) (52.76)% (27.23)%Net unrealized gains (losses) in HTM securities$(3,463) $(7,606) $(4,934) (54.47)% (29.81)%Total unrealized gains (losses) on AFS and HTM securities$(91,328) $(118,222) $(118,072) (22.75)% (22.65)% % ChangeLoans Held For InvestmentQ3 Q3 Q2 Q3 25 vs. Q3 25 vs. 2025 2024 2025 Q3 24 Q2 25Real estate - construction and development$1,239,372 $1,118,669 $1,072,625 10.79% 15.55%Commercial real estate - owner occupied 1,910,050 1,655,345 1,815,900 15.39% 5.18%Commercial real estate - non-owner occupied 3,808,755 3,179,699 3,557,175 19.78% 7.07%Real estate - multifamily 920,254 750,906 887,083 22.55% 3.74%Residential 1-4 family 2,189,417 1,891,216 1,997,395 15.77% 9.61%HELOC 556,386 408,565 480,610 36.18% 15.77%Commercial and industrial business (C&I) 1,452,133 1,256,511 1,370,564 15.57% 5.95%Government 504,543 521,681 510,902 (3.29)% (1.24)%Indirect 697,606 546,887 579,041 27.56% 20.48%Consumer loans and other 100,517 83,039 88,378 21.05% 13.74%Total$13,379,033 $11,412,518 $12,359,673 17.23% 8.25% % ChangeDepositsQ3 Q3 Q2 Q3 25 vs. Q3 25 vs. 2025 2024 2025 Q3 24 Q2 25Noninterest-bearing demand$5,139,488 $4,267,628 $4,754,340 20.43% 8.10%Interest-bearing: Demand and money market accounts 8,273,987 6,990,103 7,654,317 18.37% 8.10%Savings 331,168 319,970 332,108 3.50% (0.28)%Certificates of deposits 2,786,292 2,785,469 2,587,951 0.03% 7.66%Total 16,530,935 14,363,170 15,328,716 15.09% 7.84%

TOWNEBANKAverage Balances, Yields and Rate Paid (unaudited)(dollars in thousands) Three Months Ended Three Months Ended Three Months Ended September 30, 2025 June 30, 2025 September 30, 2024 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)$12,662,595 $180,361 5.65% $12,304,172 $170,520 5.56% $11,419,428 $156,610 5.46%Taxable investment securities 2,627,476 23,203 3.53% 2,598,093 23,361 3.60% 2,376,102 20,940 3.53%Tax-exempt investment securities 176,193 1,913 4.34% 172,083 1,802 4.19% 168,768 1,686 4.00%Total securities 2,803,669 25,116 3.58% 2,770,176 25,163 3.63% 2,544,870 22,626 3.56%Interest-bearing deposits 1,096,909 10,597 3.83% 1,045,727 10,241 3.93% 1,226,445 15,249 4.95%Mortgage loans held for sale 204,949 3,351 6.54% 172,102 2,770 6.44% 208,513 3,247 6.23%Total earning assets 16,768,122 219,425 5.19% 16,292,177 208,694 5.14% 15,399,256 197,732 5.11%Less: allowance for loan losses (139,408) (131,837) (125,331) Total nonearning assets 1,995,385 1,896,640 1,754,216 Total assets$18,624,099 $18,056,980 $17,028,141 Liabilities and Equity: Interest-bearing deposits Demand and money market$7,791,983 $43,015 2.19% $7,590,290 $42,054 2.22% $6,917,622 $48,896 2.81%Savings 332,403 684 0.82% 337,807 704 0.84% 315,338 842 1.06%Certificates of deposit 2,626,140 25,444 3.84% 2,560,313 25,394 3.98% 2,723,437 32,390 4.73%Total interest-bearing deposits 10,750,526 69,143 2.55% 10,488,410 68,152 2.61% 9,956,397 82,128 3.28%Borrowings 49,111 (212) (1.69)% 34,799 (341) (3.88)% 33,867 (25) (0.29)%Subordinated debt, net 267,755 2,461 3.68% 272,448 2,609 3.83% 256,309 2,237 3.49%Total interest-bearing liabilities 11,067,392 71,392 2.56% 10,795,657 70,420 2.62% 10,246,573 84,340 3.27%Demand deposits 4,898,006 4,685,835 4,305,783 Other noninterest-bearing liabilities 378,717 387,166 370,736 Total liabilities 16,344,115 15,868,658 14,923,092 Shareholders’ equity 2,279,984 2,188,322 2,105,049 Total liabilities and equity$18,624,099 $18,056,980 $17,028,141 Net interest income (tax-equivalent basis) (4) $148,033 $138,274 $113,392 Reconciliation of Non-GAAP Financial Measures Tax-equivalent basis adjustment (1,081) (1,061) (1,110) Net interest income (GAAP) $146,952 $137,213 $112,282 Interest rate spread (2)(4) 2.63% 2.52% 1.84%Interest expense as a percent of average earning assets 1.69% 1.73% 2.18%Net interest margin (tax-equivalent basis) (3)(4) 3.50% 3.40% 2.93%Total cost of deposits 1.75% 1.80% 2.29%

(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.

TOWNEBANKAverage Balances, Yields and Rate Paid (unaudited)(dollars in thousands) Nine Months Ended Nine Months Ended September 30, 2025 September 30, 2024 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)$12,169,050 $503,947 5.54% $11,423,458 $463,794 5.42%Taxable investment securities 2,568,420 67,866 3.52% 2,395,007 61,327 3.41%Tax-exempt investment securities 174,786 5,575 4.25% 162,294 4,756 3.91%Total securities 2,743,206 73,441 3.57% 2,557,301 66,083 3.45%Interest-bearing deposits 1,113,719 32,639 3.92% 1,192,319 43,995 4.93%Mortgage loans held for sale 180,618 8,774 6.48% 163,755 7,908 6.44%Total earning assets 16,206,593 618,801 5.10% 15,336,833 581,780 5.07%Less: allowance for loan losses (131,892) (126,508) Total nonearning assets 1,894,785 1,748,215 Total assets$17,969,486 $16,958,540 Liabilities and Equity: Interest-bearing deposits Demand and money market$7,555,758 $125,675 2.22% $6,880,752 $145,042 2.82%Savings 327,517 2,102 0.86% 320,696 2,569 1.07%Certificates of deposit 2,575,944 76,651 3.98% 2,674,509 94,928 4.74%Total interest-bearing deposits 10,459,219 204,428 2.61% 9,875,957 242,539 3.28%Borrowings 37,910 (854) (2.97)% 115,171 4,679 5.34%Subordinated debt, net 266,786 7,374 3.69% 256,094 6,710 3.49%Total interest-bearing liabilities 10,763,915 210,948 2.62% 10,247,222 253,928 3.31%Demand deposits 4,622,418 4,265,971 Other noninterest-bearing liabilities 373,274 381,547 Total liabilities 15,759,607 14,894,740 Shareholders’ equity 2,209,879 2,063,800 Total liabilities and equity$17,969,486 $16,958,540 Net interest income (tax-equivalent basis)(4) $407,853 $327,852 Reconciliation of Non-GAAP Financial Measures Tax-equivalent basis adjustment (3,210) (3,304) Net interest income (GAAP) $404,643 $324,548 Interest rate spread (2)(4) 2.48% 1.76%Interest expense as a percent of average earning assets 1.74% 2.21%Net interest margin (tax-equivalent basis) (3)(4) 3.36% 2.86%Total cost of deposits 1.81% 2.29% (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.

TOWNEBANKConsolidated Balance Sheets(dollars in thousands, except share data) September 30, December 31, 2025 2024 (unaudited) (audited)ASSETS Cash and due from banks$152,647 $108,750 Interest-bearing deposits at FRB 974,514 1,127,878 Interest-bearing deposits in financial institutions 122,819 102,847 Total Cash and Cash Equivalents 1,249,980 1,339,475 Securities available for sale, at fair value (amortized cost of $2,757,814 and $2,509,970, and allowance for credit losses of $1,350 and $1,326 at September 30, 2025 and December 31, 2024, respectively) 2,668,599 2,353,365 Securities held to maturity, at amortized cost (fair value of $173,380 and $203,883 at September 30, 2025 and December 31, 2024, respectively) 176,843 212,352 Less: allowance for credit losses (65) (77)Securities held to maturity, net of allowance for credit losses 176,778 212,275 Other equity securities 12,420 12,100 FHLB stock 16,341 12,136 Total Securities 2,874,138 2,589,876 Mortgage loans held for sale 212,507 200,460 Loans, net of unearned income and deferred costs 13,379,033 11,459,055 Less: allowance for credit losses on loans (149,175) (123,923)Net Loans 13,229,858 11,335,132 Premises and equipment, net 422,134 368,876 Goodwill 591,691 457,619 Other intangible assets, net 101,875 60,171 BOLI 334,527 279,802 Other assets 665,810 615,479 TOTAL ASSETS$19,682,520 $17,246,890 LIABILITIES AND EQUITY Deposits: Noninterest-bearing demand$5,139,488 $4,253,053 Interest-bearing: Demand and money market accounts 8,273,987 7,329,669 Savings 331,168 311,841 Certificates of deposit 2,786,292 2,542,735 Total Deposits 16,530,935 14,437,298 Advances from the FHLB 52,646 3,218 Subordinated debt, net 283,847 260,001 Repurchase agreements and other borrowings 25,740 33,683 Total Borrowings 362,233 296,902 Other liabilities 384,321 357,063 TOTAL LIABILITIES 17,277,489 15,091,263 Preferred stock, authorized and unissued shares - 2,000,000 — — Common stock, $1.667 par value: 150,000,000 shares authorized; 78,928,417 and 75,255,205 shares issued at September 30, 2025 and December 31, 2024, respectively 131,574 125,455 Capital surplus 1,253,666 1,122,147 Retained earnings 1,075,657 1,007,775 Common stock issued to deferred compensation trust, at cost: 1,112,008 and 1,046,121 shares at September 30, 2025 and December 31, 2024, respectively (24,130) (21,868)Deferred compensation trust 24,130 21,868 Accumulated other comprehensive income (loss) (63,370) (116,045)TOTAL SHAREHOLDERS’ EQUITY 2,397,527 2,139,332 Noncontrolling interest 7,504 16,295 TOTAL EQUITY 2,405,031 2,155,627 TOTAL LIABILITIES AND EQUITY$19,682,520 $17,246,890

TOWNEBANKConsolidated Statements of Income (unaudited)(dollars in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 INTEREST INCOME: Loans, including fees$179,612 $155,792 $501,705 $461,316 Investment securities 24,784 22,334 72,473 65,257 Interest-bearing deposits in financial institutions and federal funds sold 10,597 15,249 32,639 43,995 Mortgage loans held for sale 3,351 3,247 8,774 7,908 Total interest income 218,344 196,622 615,591 578,476 INTEREST EXPENSE: Deposits 69,143 82,128 204,428 242,539 Advances from the FHLB 258 29 407 3,408 Subordinated debt, net 2,461 2,237 7,374 6,710 Repurchase agreements and other borrowings (470) (54) (1,261) 1,271 Total interest expense 71,392 84,340 210,948 253,928 Net interest income 146,952 112,282 404,643 324,548 PROVISION FOR CREDIT LOSSES 15,276 (1,100) 24,106 (2,154)Net interest income after provision for credit losses 131,676 113,382 380,537 326,702 NONINTEREST INCOME: Residential mortgage banking income, net 13,123 11,786 37,046 35,685 Insurance commissions and related income, net 25,791 25,727 77,893 75,297 Property management income, net 13,529 11,221 48,585 42,306 Service charges on deposit accounts 4,056 3,117 11,025 9,548 Credit card merchant fees, net 1,909 1,830 5,400 5,042 Investment income, net 3,933 2,835 10,166 7,759 BOLI 2,157 1,886 6,021 6,966 Gain on sale of equity investment — 20 2,000 20 Other income 4,222 3,814 12,379 9,345 Net gain on investment securities (7) — (7) 74 Total noninterest income 68,713 62,236 210,508 192,042 NONINTEREST EXPENSE: Salaries and employee benefits 78,964 72,123 232,404 214,849 Occupancy 9,988 9,351 29,112 28,490 Furniture and equipment 5,044 4,657 14,436 13,769 Amortization - intangibles 4,427 3,130 11,431 9,675 Software 7,518 6,790 20,647 19,947 Data processing 4,630 4,701 12,974 13,223 Professional fees 2,999 4,720 8,191 11,689 Advertising and marketing 3,759 4,162 11,460 12,268 FDIC and other insurance 3,002 2,797 8,895 9,287 Acquisition related expenses 17,814 460 36,971 1,073 Other expenses 15,593 14,009 48,418 42,205 Total noninterest expense 153,738 126,900 434,939 376,475 Income before income tax expense and noncontrolling interest 46,651 48,718 156,106 142,269 Provision for income tax expense 7,357 5,592 26,656 20,977 Net income$39,294 $43,126 $129,450 $121,292 Net income attributable to noncontrolling interest (317) (177) (1,044) (800)Net income attributable to TowneBank$38,977 $42,949 $128,406 $120,492 Per common share information Basic earnings$0.51 $0.57 $1.70 $1.61 Diluted earnings$0.51 $0.57 $1.69 $1.61 Cash dividends declared$0.27 $0.25 $0.79 $0.75

TOWNEBANKConsolidated Balance Sheets - Five Quarter Trend(dollars in thousands, except share data) September 30, June 30, March 31, December 31, September 30, 2025 2025 2025 2024 2024 (unaudited) (unaudited) (unaudited) (audited) (unaudited)ASSETS Cash and due from banks$152,647 $149,462 $126,526 $108,750 $131,068 Interest-bearing deposits at FRB 974,514 838,315 1,090,555 1,127,878 1,061,596 Interest-bearing deposits in financial institutions 122,819 123,911 100,249 102,847 103,400 Total Cash and Cash Equivalents 1,249,980 1,111,688 1,317,330 1,339,475 1,296,064 Securities available for sale 2,668,599 2,553,975 2,470,171 2,353,365 2,363,176 Securities held to maturity 176,843 201,932 202,018 212,352 212,422 Less: allowance for credit losses (65) (67) (68) (77) (77)Securities held to maturity, net of allowance for credit losses 176,778 201,865 201,950 212,275 212,345 Other equity securities 12,420 12,248 12,223 12,100 12,681 FHLB stock 16,341 13,428 12,425 12,136 12,134 Total Securities 2,874,138 2,781,516 2,696,769 2,589,876 2,600,336 Mortgage loans held for sale 212,507 238,742 168,510 200,460 264,320 Loans, net of unearned income and deferred costs 13,379,033 12,359,673 11,652,746 11,459,055 11,412,518 Less: allowance for credit losses (149,175) (134,187) (126,131) (123,923) (123,191)Net Loans 13,229,858 12,225,486 11,526,615 11,335,132 11,289,327 Premises and equipment, net 422,134 392,056 373,111 368,876 365,764 Goodwill 591,691 499,709 457,619 457,619 457,619 Other intangible assets, net 101,875 74,186 57,145 60,171 63,265 BOLI 334,527 295,434 280,344 279,802 279,325 Other assets 665,810 645,779 634,437 615,479 572,000 TOTAL ASSETS$19,682,520 $18,264,596 $17,511,880 $17,246,890 $17,188,020 LIABILITIES AND EQUITY Deposits: Noninterest-bearing demand$5,139,488 $4,754,340 $4,313,553 $4,253,053 $4,267,628 Interest-bearing: Demand and money market accounts 8,273,987 7,654,317 7,463,355 7,329,669 6,990,103 Savings 331,168 332,108 312,151 311,841 319,970 Certificates of deposit 2,786,292 2,587,951 2,519,489 2,542,735 2,785,469 Total Deposits 16,530,935 15,328,716 14,608,548 14,437,298 14,363,170 Advances from the FHLB 52,646 12,838 3,029 3,218 3,405 Subordinated debt, net 283,847 260,430 260,198 260,001 256,444 Repurchase agreements and other borrowings 25,740 20,847 20,875 33,683 30,970 Total Borrowings 362,233 294,115 284,102 296,902 290,819 Other liabilities 384,321 402,823 402,252 357,063 371,316 TOTAL LIABILITIES 17,277,489 16,025,654 15,294,902 15,091,263 15,025,305 Preferred stock — — — — — Common stock, $1.667 par value 131,574 125,728 125,679 125,455 125,139 Capital surplus 1,253,666 1,131,536 1,123,330 1,122,147 1,117,279 Retained earnings 1,075,657 1,057,184 1,039,518 1,007,775 985,343 Common stock issued to deferred compensation trust, at cost (24,130) (23,977) (21,969) (21,868) (22,224)Deferred compensation trust 24,130 23,977 21,969 21,868 22,224 Accumulated other comprehensive income (loss) (63,370) (83,103) (87,869) (116,045) (81,482)TOTAL SHAREHOLDERS’ EQUITY 2,397,527 2,231,345 2,200,658 2,139,332 2,146,279 Noncontrolling interest 7,504 7,597 16,320 16,295 16,436 TOTAL EQUITY 2,405,031 2,238,942 2,216,978 2,155,627 2,162,715 TOTAL LIABILITIES AND EQUITY$19,682,520 $18,264,596 $17,511,880 $17,246,890 $17,188,020

TOWNEBANKConsolidated 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, 2025 2025 2025 2024 2024 INTEREST INCOME: Loans, including fees$179,612 $169,772 $152,322 $154,933 $155,792 Investment securities 24,784 24,850 22,839 22,236 22,334 Interest-bearing deposits in financial institutions and federal funds sold 10,597 10,241 11,801 15,796 15,249 Mortgage loans held for sale 3,351 2,770 2,653 3,087 3,247 Total interest income 218,344 207,633 189,615 196,052 196,622 INTEREST EXPENSE: Deposits 69,143 68,152 67,133 75,885 82,128 Advances from the FHLB 258 124 25 26 29 Subordinated debt, net 2,461 2,609 2,304 2,261 2,237 Repurchase agreements and other borrowings (470) (465) (325) (177) (54)Total interest expense 71,392 70,420 69,137 77,995 84,340 Net interest income 146,952 137,213 120,478 118,057 112,282 PROVISION FOR CREDIT LOSSES 15,276 6,410 2,420 1,606 (1,100)Net interest income after provision for credit losses 131,676 130,803 118,058 116,451 113,382 NONINTEREST INCOME: Residential mortgage banking income, net 13,123 13,561 10,361 11,272 11,786 Insurance commissions and related income, net 25,791 25,677 26,424 23,265 25,727 Property management income, net 13,529 15,556 19,500 8,186 11,221 Service charges on deposit accounts 4,056 3,642 3,327 3,289 3,117 Credit card merchant fees, net 1,909 1,794 1,697 1,486 1,830 Investment income, net 3,933 3,158 3,075 3,195 2,835 BOLI 2,157 1,992 1,872 4,478 1,886 Other income 4,222 4,849 5,310 3,932 3,834 Net gain on investment securities (7) — — — — Total noninterest income 68,713 70,229 71,566 59,103 62,236 NONINTEREST EXPENSE: Salaries and employee benefits 78,964 78,362 75,078 74,399 72,123 Occupancy 9,988 9,791 9,333 9,819 9,351 Furniture and equipment 5,044 4,770 4,621 4,850 4,657 Amortization - intangibles 4,427 3,979 3,026 3,095 3,130 Software 7,518 6,835 6,293 6,870 6,790 Data processing 4,630 4,510 3,835 3,788 4,701 Professional fees 2,999 2,539 2,653 3,446 4,720 Advertising and marketing 3,759 3,228 4,472 3,359 4,162 Other expenses 36,409 36,651 21,225 17,815 17,266 Total noninterest expense 153,738 150,665 130,536 127,441 126,900 Income before income tax expense and noncontrolling interest 46,651 50,367 59,088 48,113 48,718 Provision for income tax expense 7,357 11,098 8,201 6,672 5,592 Net income 39,294 39,269 50,887 41,441 43,126 Net income attributable to noncontrolling interest (317) (432) (295) (176) (177)Net income attributable to TowneBank$38,977 $38,837 $50,592 $41,265 $42,949 Per common share information Basic earnings$0.51 $0.52 $0.67 $0.55 $0.57 Diluted earnings$0.51 $0.51 $0.67 $0.55 $0.57 Basic weighted average shares outstanding 76,417,605 75,240,678 75,149,668 75,034,688 74,940,827 Diluted weighted average shares outstanding 76,763,640 75,540,822 75,527,713 75,318,578 75,141,661 Cash dividends declared$0.27 $0.27 $0.25 $0.25 $0.25

TOWNEBANKBanking Segment Financial Information (unaudited)(dollars in thousands) Three Months Ended Nine Months Ended Increase/(Decrease) September 30, June 30, September 30, YTD 2025 over 2024 2025 2024 2025 2025 2024 Amount Percent Revenue Net interest income$145,746 $111,569 $136,325 $401,654 $322,280 $79,374 24.63%Service charges on deposit accounts 4,056 3,117 3,642 11,025 9,548 1,477 15.47%Credit card merchant fees 1,909 1,830 1,794 5,400 5,042 358 7.10%Investment income, net 3,933 2,835 3,158 10,166 7,759 2,407 31.02%Other income 4,632 4,828 5,750 16,876 13,096 3,780 28.86%Subtotal 14,530 12,610 14,344 43,467 35,445 8,022 22.63%Net gain/(loss) on investment securities (7) — — (7) 74 (81) (109.46)%Total noninterest income 14,523 12,610 14,344 43,460 35,519 7,941 22.36%Total revenue 160,269 124,179 150,669 445,114 357,799 87,315 24.40% Provision for credit losses 15,148 (1,043) 6,212 23,727 (2,189) 25,916 (1,183.92)% Expenses Salaries and employee benefits 53,053 47,148 52,850 155,588 140,261 15,327 10.93%Occupancy 7,571 6,963 7,342 21,892 21,217 675 3.18%Furniture and equipment 4,302 3,878 4,081 12,191 11,336 855 7.54%Amortization of intangible assets 2,417 1,072 1,969 5,367 3,352 2,015 60.11%Software 5,096 4,336 4,427 13,545 12,813 732 5.71%Data processing 2,853 2,765 2,840 8,301 7,922 379 4.78%Accounting and professional fees 2,514 4,123 1,934 6,458 9,929 (3,471) (34.96)%Advertising and marketing 2,167 2,141 1,883 6,947 6,759 188 2.78%FDIC and other insurance 2,672 2,493 2,676 7,938 8,475 (537) (6.34)%Acquisition related 17,761 460 17,256 35,437 606 34,831 N/MOther expenses 13,272 10,356 11,276 36,519 30,711 5,808 18.91%Total expenses 113,678 85,735 108,534 310,183 253,381 56,802 22.42%Income before income tax, corporate allocation and noncontrolling interest 31,443 39,487 35,923 111,204 106,607 4,597 4.31%Corporate allocation 1,544 1,223 1,535 4,475 3,524 951 26.99%Income before income tax provision and noncontrolling interest 32,987 40,710 37,458 115,679 110,131 5,548 5.04%Provision for income tax expense 3,881 3,495 7,814 16,375 12,731 3,644 28.62%Net income 29,106 37,215 29,644 99,304 97,400 1,904 1.95%Noncontrolling interest (112) (29) (124) (194) 34 (228) (670.59)%Net income attributable to TowneBank$28,994 $37,186 $29,520 $99,110 $97,434 $1,676 1.72% Efficiency ratio (non-GAAP) 69.42% 68.18% 70.73% 68.48% 69.89% (1.41)% (2.02)%

TOWNEBANKMortgage Segment Financial Information (unaudited)(dollars in thousands) Three Months Ended Nine Months Ended Increase/(Decrease) September 30, June 30, September 30, YTD 2025 over 2024 2025 2024 2025 2025 2024 Amount PercentRevenue Residential mortgage brokerage income, net$13,724 $12,211 $14,083 $38,388 $37,006 $1,382 3.73%Income (loss) from unconsolidated subsidiary 107 51 83 232 148 84 56.76%Net interest and other income 1,414 904 1,095 3,620 2,903 717 24.70%Total revenue 15,245 13,166 15,261 42,240 40,057 2,183 5.45% Provision for credit losses 128 (57) 198 379 35 344 982.86% Expenses Salaries and employee benefits 7,574 6,513 7,315 21,920 19,972 1,948 9.75%Occupancy 956 975 1,098 2,993 3,099 (106) (3.42)%Furniture and equipment 151 151 151 497 478 19 3.97%Amortization of intangible assets — — — — 287 (287) (100.00)%Software 800 744 790 2,317 2,407 (90) (3.74)%Data processing 209 205 198 570 523 47 8.99%Accounting and professional fees 117 219 157 500 595 (95) (15.97)%Advertising and marketing 500 407 420 1,309 1,237 72 5.82%FDIC and other insurance 128 91 117 341 287 54 18.82%Acquisition related 53 — 1,481 1,534 — 1,534 100.00%Other expenses 2,466 2,327 2,728 7,657 7,084 573 8.09%Total expenses 12,954 11,632 14,455 39,638 35,969 3,669 10.20% Income before income tax, corporate allocation and noncontrolling interest 2,163 1,591 608 2,223 4,053 (1,830) (45.15)%Corporate allocation (502) (484) (519) (1,371) (1,322) (49) 3.71%Income before income tax provision and noncontrolling interest 1,661 1,107 89 852 2,731 (1,879) (68.80)%Provision for income tax expense 319 218 (41) 38 497 (459) (92.35)%Net income 1,342 889 130 814 2,234 (1,420) (63.56)%Noncontrolling interest (205) (285) (308) (630) (812) 182 22.41%Net income attributable to TowneBank$1,137 $604 $(178) $184 $1,422 $(1,238) (87.06)% Efficiency ratio excluding gain on equity investment (non-GAAP) 84.97% 88.35% 94.72% 93.84% 89.08% 4.76% 5.34%

TOWNEBANKResort Property Management Segment Financial Information (unaudited)(dollars in thousands) Three Months Ended Nine Months Ended Increase/(Decrease) September 30, June 30, September 30, YTD 2025 over 2024 2025 2024 2025 2025 2024 Amount PercentRevenue Property management fees, net$13,529 $11,221 $15,556 48,585 42,306 6,279 14.84%Net interest and other income 44 2 24 81 104 (23) (22.12)%Total revenue 13,573 11,223 15,580 48,666 42,410 6,256 14.75% Expenses Salaries and employee benefits 5,516 5,842 5,250 16,214 16,941 (727) (4.29)%Occupancy 677 663 574 1,865 1,920 (55) (2.86)%Furniture and equipment 431 453 385 1,222 1,316 (94) (7.14)%Amortization of intangible assets 637 637 637 1,911 1,807 104 5.76%Software 885 964 877 2,622 2,495 127 5.09%Data processing 1,428 1,616 1,339 3,711 4,438 (727) (16.38)%Accounting and professional fees 92 152 236 454 624 (170) (27.24)%Advertising and marketing 941 1,379 750 2,582 3,750 (1,168) (31.15)%FDIC and other insurance 60 60 113 240 169 71 42.01%Acquisition related — — — — 466 (466) (100.00)%Other expenses (756) 675 427 2,284 2,099 185 8.81%Total expenses 9,911 12,441 10,588 33,105 36,025 (2,920) (8.11)% Income before income tax, corporate allocation and noncontrolling interest 3,662 (1,218) 4,992 15,561 6,385 9,176 143.71%Corporate allocation (329) — (316) (965) — (965) N/MIncome before income tax provision and noncontrolling interest 3,333 (1,218) 4,676 14,596 6,385 8,211 128.60%Provision for income tax expense 922 (200) 1,227 3,778 1,839 1,939 105.44%Net income 2,411 (1,018) 3,449 10,818 4,546 6,272 137.97%Noncontrolling interest — 137 — (220) (22) (198) (900.00)%Net income attributable to TowneBank$2,411 $(881) $3,449 $10,598 $4,524 $6,074 134.26% Efficiency ratio excluding gain on equity investment (non-GAAP) 68.33% 105.18% 63.87% 64.10% 80.68% (16.58)% (20.55)%

TOWNEBANKInsurance Segment Financial Information (unaudited)(dollars in thousands) Three Months Ended Nine Months Ended Increase/(Decrease) September 30, June 30, September 30, YTD 2025 over 2024 2025 2024 2025 2025 2024 Amount PercentCommission and fee income Property and casualty$24,030 $23,157 $23,306 $70,659 $66,104 $4,555 6.89%Employee benefits 4,925 4,483 4,596 14,245 13,712 533 3.89%Specialized benefit services — — — — 10 (10) (100.00)%Total commissions and fees 28,955 27,640 27,902 84,904 79,826 5,078 6.36% Contingency and bonus revenue 2,556 2,731 3,034 9,210 10,185 (975) (9.57)%Other income 10 25 4 18 41 (23) (56.10)%Total revenue 31,521 30,396 30,940 94,132 90,052 4,080 4.53% Employee commission expense 4,943 4,446 5,008 15,001 13,728 1,273 9.27%Revenue, net of commission expense 26,578 25,950 25,932 79,131 76,324 2,807 3.68% Salaries and employee benefits 12,821 12,620 12,947 38,682 37,675 1,007 2.67%Occupancy 784 750 777 2,362 2,254 108 4.79%Furniture and equipment 160 175 153 526 639 (113) (17.68)%Amortization of intangible assets 1,373 1,421 1,373 4,153 4,229 (76) (1.80)%Software 737 746 741 2,163 2,232 (69) (3.09)%Data processing 140 115 133 392 340 52 15.29%Accounting and professional fees 276 226 212 779 541 238 43.99%Advertising and marketing 151 235 175 622 522 100 19.16%FDIC and other insurance 142 153 126 376 356 20 5.62%Acquisition related — — — — 1 (1) (100.00)%Other expenses 611 651 451 1,958 2,311 (353) (15.27)%Total operating expenses 17,195 17,092 17,088 52,013 51,100 913 1.79%Income before income tax, corporate allocation and noncontrolling interest 9,383 8,858 8,844 27,118 25,224 1,894 7.51%Corporate allocation (713) (739) (700) (2,139) (2,202) 63 2.86%Income before income tax provision and noncontrolling interest 8,670 8,119 8,144 24,979 23,022 1,957 8.50%Provision for income tax expense 2,235 2,079 2,098 6,465 5,910 555 9.39%Net income 6,435 6,040 6,046 18,514 17,112 1,402 8.19%Noncontrolling interest — — — — — — —%Net income attributable to TowneBank$6,435 $6,040 $6,046 $18,514 $17,112 $1,402 8.19% Provision for income taxes 2,235 2,079 2,098 6,465 5,910 555 9.39%Depreciation, amortization and interest expense 1,481 1,550 1,489 4,497 4,632 (135) (2.91)%EBITDA (non-GAAP)$10,151 $9,669 $9,633 $29,476 $27,654 $1,822 6.59% Efficiency ratio (non-GAAP) 59.53% 60.44% 60.60% 60.48% 61.43% (0.95)% (1.55)%

TOWNEBANKReconciliation of Non-GAAP Financial Measures(dollars in thousands) Three Months Ended Nine Months Ended September 30, September 30, June 30, September 30, September 30, 2025 2024 2025 2025 2024 Return on average assets (GAAP) 0.83% 1.00% 0.86% 0.96% 0.95%Impact of excluding average goodwill and other intangibles and amortization 0.11% 0.09% 0.10% 0.10% 0.09%Return on average tangible assets (non-GAAP) 0.94% 1.09% 0.96% 1.06% 1.04% Return on average equity (GAAP) 6.78% 8.12% 7.12% 7.77% 7.80%Impact of excluding average goodwill and other intangibles and amortization 3.32% 3.30% 3.27% 3.41% 3.31%Return on average tangible equity (non-GAAP) 10.10% 11.42% 10.39% 11.18% 11.11% Return on average common equity (GAAP) 6.80% 8.18% 7.14% 7.81% 7.86%Impact of excluding average goodwill and other intangibles and amortization 3.35% 3.36% 3.30% 3.44% 3.37%Return on average tangible common equity
(non-GAAP) 10.15% 11.54% 10.44% 11.25% 11.23% Book value (GAAP)$30.38 $28.59 $29.58 $30.38 $28.59 Impact of excluding average goodwill and other intangibles and amortization (8.79) (6.94) (7.60) (8.79) (6.94)Tangible book value (non-GAAP)$21.59 $21.65 $21.98 $21.59 $21.65 Efficiency ratio (GAAP) 71.29% 72.71% 72.63% 70.70% 72.88%Impact of exclusions(2.06)% (1.78)% (1.92)% (1.63)% (1.86)%Efficiency ratio (non-GAAP) 69.23% 70.93% 70.71% 69.07% 71.02% Average assets (GAAP)$18,624,099 $17,028,141 $18,056,980 $17,969,486 $16,958,540 Less: average goodwill and intangible assets 611,836 522,219 567,250 565,597 523,335 Average tangible assets (non-GAAP)$18,012,263 $16,505,922 $17,489,730 $17,403,889 $16,435,205 Average equity (GAAP)$2,279,984 $2,105,049 $2,188,322 $2,209,879 $2,063,800 Less: average goodwill and intangible assets 611,836 522,219 567,250 565,597 523,335 Average tangible equity (non-GAAP)$1,668,148 $1,582,830 $1,621,072 $1,644,282 $1,540,465 Average common equity (GAAP)$2,272,509 $2,088,674 $2,180,687 $2,199,472 $2,047,482 Less: average goodwill and intangible assets 611,836 522,219 567,250 565,597 523,335 Average tangible common equity (non-GAAP)$1,660,673 $1,566,455 $1,613,437 $1,633,875 $1,524,147 Net income (GAAP)$38,977 $42,949 $38,837 $128,406 $120,492 Amortization of intangibles, net of tax 3,497 2,473 3,143 9,030 7,643 Tangible net income (non-GAAP)$42,474 $45,422 $41,980 $137,436 $128,135 Total revenue (GAAP)$215,665 $174,518 $207,442 $615,151 $516,590 Net (gain)/loss on investment securities/equity investments 7 (20) — (1,993) (94)Total revenue for efficiency calculation (non-GAAP)$215,672 $174,498 $207,442 $613,158 $516,496 Noninterest expense (GAAP)$153,738 $126,900 $150,665 $434,939 $376,475 Less: amortization of intangibles 4,427 3,130 3,979 11,431 9,675 Noninterest expense net of amortization (non-GAAP)$149,311 $123,770 $146,686 $423,508 $366,800

TOWNEBANKReconciliation 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, 2025 2025 2025 2024 2024 Net income available to common shareholders (GAAP) $38,977 $38,837 $50,592 $41,265 $42,949 Adjustments Plus: Acquisition-related expenses, net of tax 14,996 15,291 389 250 460 Plus: Initial provision for acquired loans, net of tax 9,478 4,926 — — — Plus: FDIC special assessment, net of tax — — — — — 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 — — — (99) (16)Total adjustments, net of taxes 24,474 22,503 389 151 444 Core operating earnings, excluding certain items affecting comparability (non-GAAP) $63,451 $61,340 $50,981 $41,416 $43,393 Annualized interest impact of Series IV Notes, net of tax 42 42 42 — — Core net income for diluted EPS (non-GAAP) $63,493 $61,382 $51,023 $41,416 $43,393 Weighted average diluted shares 76,763,640 75,540,822 75,527,713 75,318,578 75,141,661 Diluted EPS (GAAP) $0.51 $0.51 $0.67 $0.55 $0.57 Diluted EPS, excluding certain items affecting comparability (non-GAAP) $0.83 $0.81 $0.68 $0.55 $0.58 Average assets $18,624,099 $18,056,980 $17,211,862 $17,349,128 $17,028,141 Average tangible equity $1,668,148 $1,621,072 $1,643,353 $1,628,420 $1,582,830 Average tangible common equity $1,660,673 $1,613,437 $1,627,145 $1,612,087 $1,566,455 Return on average assets, excluding certain items affecting comparability (non-GAAP) 1.35% 1.36% 1.20% 0.95% 1.01%Return on average tangible equity, excluding certain items affecting comparability (non-GAAP) 15.92% 15.95% 13.17% 10.72% 11.53%Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP) 15.99% 16.03% 13.30% 10.82% 11.65%Efficiency ratio, excluding certain items affecting comparability (non-GAAP) 60.97% 61.68% 66.87% 70.12% 70.67%

TOWNEBANKReconciliation 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, 2025 2024 Net income available to common shareholders (GAAP) $128,406 $120,492 Adjustments Plus: Acquisition-related expenses, net of tax 30,676 1,040 Plus: FDIC special assessment, net of tax — 711 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 — (16)Total adjustments, net of taxes 47,366 1,735 Core operating earnings, excluding certain items affecting comparability (non-GAAP) $175,772 $122,227 Annualized interest impact of Series IV Notes, net of tax 126 — Core net income for diluted EPS (non-GAAP) $175,898 $122,227 Weighted average diluted shares 75,952,187 75,043,848 Diluted EPS (GAAP) $1.69 $1.61 Diluted EPS, excluding certain items affecting comparability (non-GAAP) $2.32 $1.63 Average assets $17,969,486 $16,958,540 Average tangible equity $1,644,282 $1,540,465 Average tangible common equity $1,633,875 $1,524,147 Return on average assets, excluding certain items affecting comparability (non-GAAP) 1.31% 0.96%Return on average tangible equity, excluding certain items affecting comparability (non-GAAP) 15.03% 11.26%Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP) 15.12% 11.38%Efficiency ratio, excluding certain items affecting comparability (non-GAAP) 63.04% 70.81%