TowneBank (TOWN) to Issue Quarterly Dividend of $0.25 on January 14th

TowneBank (NASDAQ:TOWN) announced a quarterly dividend on Wednesday, November 27th,Wall Street Journal reports. Stockholders of record on Tuesday, December 31st will be given a dividend of 0.25 per share by the bank on Tuesday, January 14th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.91%. The ex-dividend date is Tuesday, December 31st.

TowneBank has raised its dividend by an average of 10.8% annually over the last three years and has increased its dividend every year for the last 12 years. TowneBank has a payout ratio of 39.4% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect TowneBank to earn $2.53 per share next year, which means the company should continue to be able to cover its $1.00 annual dividend with an expected future payout ratio of 39.5%.

TowneBank Price Performance

NASDAQ:TOWN opened at $34.42 on Friday. The firm has a market capitalization of $2.58 billion, a P/E ratio of 17.30 and a beta of 0.91. TowneBank has a one year low of $25.70 and a one year high of $38.28. The company’s 50-day simple moving average is $35.14 and its 200 day simple moving average is $32.77.

TowneBank (NASDAQ:TOWN) last released its earnings results on Wednesday, October 23rd. The bank reported $0.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.56 by $0.02. The firm had revenue of $258.86 million during the quarter, compared to analyst estimates of $179.80 million. TowneBank had a net margin of 14.89% and a return on equity of 7.32%. During the same period last year, the business earned $0.60 earnings per share. On average, equities research analysts expect that TowneBank will post 2.07 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Separately, Keefe, Bruyette & Woods raised TowneBank from a “market perform” rating to an “outperform” rating and increased their target price for the stock from $35.00 to $40.00 in a research note on Wednesday, October 2nd.

About TowneBank

TowneBank provides retail and commercial banking services for individuals, commercial enterprises, and professionals. The company operates through three segments: Banking, Realty, and Insurance. It accepts various deposits, including demand deposits, savings accounts, money rate savings, certificates of deposit, and individual retirement accounts.