TOWN - TowneBank: Manageable CRE Exposure But The Stock Is A Bit Too Expensive
2024-05-08 10:30:00 ET
Summary
- TowneBank's net interest income is under pressure, with a decrease in net interest margin compared to last year.
- The bank's loan book is healthy, with a low amount of non-performing loans and a focus on commercial real estate.
- The bank's performance is solid, but the stock is currently trading at a high valuation, making it a hold for now.
Introduction
About a year ago, I wasn’t too worried about TowneBank ( TOWN ), a regional bank headquartered in Virginia with a total asset base of almost $17B. Last year, I liked the bank’s strong loan book and thought that was a good feature while the US financial sector was dealing with the fallout from some bankruptcies. The share price has now moved up by almost 20% so I wanted to have a closer look at its recent results and valuation....
TowneBank: Manageable CRE Exposure, But The Stock Is A Bit Too Expensive