TowneBank Announces Quarterly Cash Dividends and Annual Shareholder Meeting Date

TowneBank Announces Quarterly Cash Dividends and Annual Shareholder Meeting
Date

SUFFOLK, Va., Feb. 26, 2014 (GLOBE NEWSWIRE) -- Hampton Roads based TowneBank
(Nasdaq:TOWN) announced today that its Board of Directors on February 26, 2014
declared its first-quarter shareholder cash dividend of $0.10 per common share
payable on April 11, 2014 to shareholders of record on March 28, 2014.

Also, on February 26, 2014 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 April 1, 2014, to the
shareholder of record as of March 17, 2014. This is the tenth 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.

Annual Meeting of Shareholders:

TowneBank announced that its 2014 Annual Meeting of Shareholders would be held
at 11:30 a.m. on Wednesday, May 21, 2014 at the Virginia Beach Convention
Center, 1000 19^th Street in Virginia Beach, Virginia.

As one of the top community banks in Virginia and North Carolina, TowneBank
operates 27 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.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 $4.67billion as of December 31, 2013,
TowneBank is one of the largest banks headquartered in Virginia.

CONTACT: G. Robert Aston
         Chairman and CEO
         (757) 638-6780
        
         Clyde E. McFarland, Jr.
         Senior Executive Vice President and CFO
         (757) 638-6801
 
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