TowneBank Stock Offering Tops $43 Million
August 01, 2008
FOR IMMEDIATE RELEASE
For more information contact:
G. Robert Aston, Chairman and CEO, 757-638-6780, Cell Phone 757-418-2700
Clyde E. McFarland, Jr., Senior Executive Vice President and CFO, 757-638-6801
Suffolk, Va.- August 1, 2008 - TowneBank (NASDAQ symbol: TOWN) reported overwhelming shareholder and member response to the bank’s new $30 Million Preferred Stock Offering. As of 4:00 p.m. August 1, 2008, the bank has received confirmed subscriptions totaling $43.4 million.
In order to satisfy investor demand, the bank has increased the offering to a maximum of $55 million or 550,000 shares. Subscriptions will be accepted from current shareholders and depositors until the close of business on Friday, August 8, 2008 or the receipt of $55 million in paid subscriptions whichever occurs first. No shares will be available to the public.
“This tremendous support from our friends throughout Hampton Roads has been incredible”, said G. Robert Aston, Jr., Chairman. “Everything we have accomplished here at TowneBank truly stands as a tribute to those in the community who have supported us.”
This press release is not an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such an offer, solicitation, or sale would be unlawful prior to the registration or qualification under the securities laws of any such state. Any offer, solicitation or sale will be made only by means of the final offering.
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, GSH Real Estate Corporation, TowneBank 1031 Exchange, LLC, Corolla Classic Vacations and Corolla Real Estate. Through its strategic partnership with William E. Wood and Associates and Prudential McCardle, the bank also offers mortgage services in all of the offices of both companies 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 $2.72 billion as of June 30, 2008, TowneBank is the largest bank headquartered in Hampton Roads.
This release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Facts that may cause actual results to differ materially from those contemplated by such forward-looking statements include competitive pressures in the banking industry that may increase significantly; changes in the interest rate environment may reduce margins and/or the volumes and values of loans made or held as well as the value of other financial assets held; general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, deterioration in credit quality and/or a reduced demand for credit or other services, changes in the legislative or regulatory environment, including changes in accounting standards, may adversely affect our business; costs or difficulties; related to the integration of the business and the businesses we have acquired may be greater than expected; expected cost savings associated with pending or recently completed acquisitions may not be fully realized or realized within the expected time frame; our competitors may have greater financial resources and develop products that enable them to compete more successfully; changes in business conditions, changes in the securities market and changes in our local economy with regards to our market area and its heavy concentration of U. S. military based and related personnel. We assume no obligation to update information contained in this release.