TowneBank profit reaches $193.2 million after sale

• TowneBank reported second-quarter net income of $193.19 million, including a $198.55 million gain from selling its Resort Property Management segment.
• Core EPS was $0.78, while TowneBank shares were down 0.7% at $36.09 in the latest extended-hours trading.
• TowneBank said the sale strengthened its capital position as it expands in the Carolinas and considers insurance acquisitions.

TowneBank (NASDAQ:TOWN) reported second-quarter net income of $193.19 million, or $2.09 per share, largely reflecting a $198.55 million business-sale gain.

Core non-GAAP earnings increased to $72.01 million from $63.39 million, although core diluted EPS declined from $0.84 to $0.78.

Revenue rose 111% to $444.27 million, while one-time items included a $25 million charitable contribution, $8.68 million of acquisition costs and a $0.70 special dividend.

Following the announcement, TowneBank's share price was down 0.7% at $36.09 in the latest extended-hours quote.

Total deposits increased to $18.71 billion, while loans held for investment declined 0.6% sequentially to $15.17 billion.

TowneBank said the sale strengthened its capital for Carolinas expansion and selective insurance acquisitions, as tangible book value increased to $22.60 per share.