TowneBank Increases Common Stock Dividend by 11.1%
Quarterly Cash Dividends Declared
SUFFOLK, Va., Aug. 28, 2013 (GLOBE NEWSWIRE) -- Hampton Roads based TowneBank
(Nasdaq:TOWN) announced today that its Board of Directors on August 28, 2013
declared its third-quarter shareholder cash dividend of $0.10 per common share
payable on October 11, 2013 to shareholders of record on September 27,
2013.The quarterly common stock cash dividend of $0.10 per common share, or
$0.40 per common share on an annual basis, is an 11.1% increase from the
previous dividend rate.
"We are pleased that our capital position and financial performance have
afforded us the ability to grow cash dividends once again," said Clyde E.
McFarland, Jr., Chief Financial Officer of TowneBank."This increase is
another example of our continuing commitment to our shareholders.Based on the
stock price at the close of the market on August 27, 2013, the current annual
dividend equates to a yield of $2.81%."
Also, on August 28, 2013 the Board of Directors declared a cash dividend of
$2.50 per share on its Series C Fixed-Rate Non-Cumulative Perpetual Preferred
Stock. This preferred dividend is payable on October 1, 2013, to the
shareholder of record as of September 16, 2013. This is the eighth quarterly
dividend payment to the U.S. Department of the Treasury, the shareholder of
record, on the preferred stock issued to it by TowneBank under the Small
Business Lending Fund Program.
The amount and declaration of future cash dividends are subject to Board of
Directors' approval in addition to regulatory restrictions.
As one of the top community banks in Virginia and North Carolina, TowneBank
operates 26 banking offices serving Chesapeake, Hampton, Newport News,
Norfolk, Portsmouth, Suffolk, Virginia Beach, Williamsburg, James City County
and York County in Virginia along with Moyock, Grandy, Camden, Southern
Shores, Corolla and Kill Devil Hills in North Carolina.Towne also offers a
full range of financial services through its controlled divisions and
subsidiaries that include Towne Investment Group, Towne Insurance Agency, TFA
Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Prudential Towne
Realty, Towne 1031 Exchange, LLC, and Corolla Classic Vacations.Through its
strategic partnership with William E. Wood and Associates, the bank also
offers mortgage services in all of their offices in Hampton Roads and
Northeastern North Carolina. Local decision-making is a hallmark of its
hometown banking strategy that is delivered through the leadership of each
group's President and Board of Directors.With total assets of $4.60 billion
as of June 30, 2013, TowneBank is one of the largest banks headquartered in
CONTACT: G. Robert Aston, Jr.,
Chairman and CEO,
Clyde E. McFarland, Jr.,
Senior Executive Vice President and CFO,
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