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TowneBank Enters Resort Property Management Field With Acquisition of Two Quality Outer Banks Firms

January 03, 2008

News Release

For more information contact:
G. Robert Aston, Chairman and CEO, 638-6780

Suffolk, Va. - TowneBank has today signed an agreement to purchase the assets of Corolla Classic Vacations and Corolla Real Estate, both located in Corolla, North Carolina. The transaction is expected to close in early January 2008.

“Earlier this year we began searching for a quality resort property management/realty company as the next step in our strategy to develop a larger presence in the Outer Banks,” says G. Robert Aston, Chairman of TowneBank, headquartered in Portsmouth, Virginia. “The Outer Banks is a natural extension of the Hampton Roads market in which we operate. We were enormously impressed not only by these companies’ performance, but by Denise K. Graham, Eddie Kavanaugh, and Malissa Suggs, who founded them in 2000 and 2001. These organizations provide high touch service for several hundred of the most distinctive resort properties in the Corolla area.” Graham, Kavanaugh, and Suggs will remain in their current positions, as will Debbie Price, Broker-in-Charge with Corolla Real Estate. “We look forward to a long association with both the owners of the companies and all their employees,” says Aston.

For TowneBank, the opportunity to add both a strong real estate and property management firm at the same time creates opportunities for lending and insurance business for its other affiliated companies that are growing their customer base in northeastern North Carolina. “Since we have limited experience in resort property management, we entered into this purchase mainly because Denise, Eddie, and Malissa have agreed to continue to run the companies just as they have since their beginning,” says Aston. “We look forward to a long association with both the owners of the companies and all their employees.”

TowneBank hopes to help generate more rentals for property owners by cross marketing to the bank’s existing 40,000+ member base in Hampton Roads. Additionally, Towne plans on further developing Corolla Classic Vacations’ and Corolla Real Estate’s technology and providing the capital to expand and modernize facilities and equipment.

“We thoroughly investigated Towne before we agreed to partner with them,” says Denise Graham. “Towne’s philosophy is just like ours,” adds Eddie Kavanaugh. “We both put service and respect for employees first, and everything else tends to work successfully when you
start from that point.”

As one of Virginia’s top community banks, TowneBank now operates 17 banking offices in Chesapeake, Hampton, Portsmouth, Newport News, Virginia Beach, Norfolk, Williamsburg and York County. 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 and GSH Real Estate Corporation. Through its strategic partnership with William E. Wood and Associates the bank also offers mortgage services in 21 of Wood’s 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 $2.48 billion as of September 30, 2007, TowneBank is the largest bank headquartered in Hampton Roads.

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