Towne BankTOWN +1.21%63 ROE % is 6.17% as of Mar. 2026, which is 25% below its 10-year median of 8.25. GuruFocus rates TOWN with a GF Score™ of 63/100 and a GF Value™ of $36.96 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,523 Banks companies, Towne Bank ranks worse than 74.39% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Towne Bank's annualized net income for the quarter that ended in Mar. 2026 was $164.0 Mil. Towne Bank's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $2,656.9 Mil. Therefore, Towne Bank's annualized ROE % for the quarter that ended in Mar. 2026 was 6.17%.
The historical rank and industry rank for Towne Bank's ROE % or its related term are showing as below:
TOWN'
s ROE % Range Over the Past 10 Years
Min: 6.58 Med: 8.25 Max: 11.75
Current: 6.58
During the past 13 years, Towne Bank's highest ROE % was 11.75%. The lowest was 6.58%. And the median was 8.25%.
TOWN's ROE % is ranked worse than 74.39% of 1523
companies
in the Banks industry
Industry Median: 10.22
vs TOWN: 6.58
Towne Bank (NAS:TOWN) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Towne Bank ROE % Related Terms
Towne Bank ROE % Historical Data
* Premium members only.
The historical data trend for Towne Bank's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Banks - Regional subindustry, Towne Bank's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Towne Bank ROE % vs Banks Industry
For the Banks industry and Financial Services sector, Towne Bank's ROE % distribution charts can be found below:
* The bar in red indicates where Towne Bank's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Towne Bank (TOWN) has a ROE % of 6.17% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Towne Bank and its competitors. This is 25% below median its historical median of 8.25. Over the past decade, Towne Bank's ROE % has ranged from 6.58 to 11.75. According to the industry distribution chart, Towne Bank ranks #1133 out of 1523 companies in the Banks industry, placing it in the top 74.4%.
Is Towne Bank's ROE % too high?
Towne Bank's current ROE % of 6.17% is 25% below median its 10-year median of 8.25. Over the past 10 years, this metric has ranged from a low of 6.58 to a high of 11.75. The Banks industry median ROE % is 10.22. Towne Bank's value of 6.17% is 39.6% below this industry median. Based on the distribution chart, Towne Bank ranks #1133 out of 1523 companies in the Banks industry, which is below the industry midpoint. Overall, Towne Bank has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Towne Bank's ROE % compare to SFNC and PRK?
According to the Banks industry distribution chart, Towne Bank ranks #1133 out of 1523 companies for ROE %. This places Towne Bank in the lower half of its industry. The industry median ROE % is 10.22. Towne Bank's value of 6.17% is 39.6% below this benchmark. Historically, Towne Bank's own ROE % has ranged from 6.58 to 11.75 over the past decade. While the company's 10-year median is 8.25 vs. the industry median of 10.22, Towne Bank has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Banks company?
The median ROE % among Banks companies is 10.22, based on 1,523 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Towne Bank's current ROE % of 6.17% is 39.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Towne Bank and its competitors. For the Banks industry, the median ROE % is 10.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Towne Bank's current ROE % is 6.17%, which is 25% below median its own 10-year median of 8.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Towne Bank stock overvalued right now?
Based on GuruFocus' analysis, Towne Bank (TOWN) is currently considered Fairly Valued. The stock's GF Value™ is $36.96, compared to a current price of $35.99 — trading 2.6% below its estimated fair value. The current ROE % is 6.17%, which is 25% below median its 10-year median of 8.25 and 39.6% below the Banks industry median of 10.22. Towne Bank's overall GF Score™ is 63/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Towne Bank (TOWN), the current ROE % is 6.17% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Towne Bank (TOWN) Overvalued in 2026?
Based on GuruFocus' analysis, Towne Bank stock appears to be undervalued.
The current stock price of $35.99 is trading 2.6% below its estimated GF Value™ of $36.96.
GuruFocus considers Towne Bank to be Fairly Valued.
Key valuation signals for TOWN:
ROE %: 6.17% (25% below median its 10-year median of 8.25)
GF Value™: $36.96 vs. price of $35.99 (2.6% below fair value)
Industry Position: 39.6% below the Banks median (#1133 of 1523)
No single metric tells the full story. See the TOWN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Towne Bank is a financial services company serving individuals, commercial enterprises and professionals, offering retail and commercial banking services in Virginia and North Carolina. The company has four reportable segments: Banking, which provides loan and deposit services, commercial mortgage brokerage, and investment and asset management services; Mortgage, which originates mortgage loans principally sold in the secondary market through purchase commitments from investors; Resort Vacation Management, which provides residential resort property management services; and Insurance, which provides property, casualty, life and health insurance solutions for businesses, individuals and community organizations through a variety of carriers.
63GF Score
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