SUFFOLK, Va., Sept. 3, 2013 (GLOBE NEWSWIRE) -- Hampton Roads based TowneBank (Nasdaq:TOWN) announced today that all of the outstanding shares of its 8.0% Non-Cumulative Convertible Preferred Stock, Series A (the "Series A Preferred") were converted on September 1, 2013 into shares of TowneBank common stock at a conversion rate of 5.55 shares of common stock per share of Series A Preferred, plus cash in lieu of any fractional shares at a price of $14.36 per whole share.
"We are pleased that our capital position and financial performance has enabled us to fully meet all 8% preferred stock dividends while also increasing our common dividends at a time when many banks were required to reduce or fully eliminate all dividend payments," said Clyde E. McFarland, Jr., Chief Financial Officer. "This conversion will eliminate total annual preferred dividends of approximately $4.59 million and will have a positive effect on our common equity position."
All holders of Series A Preferred should submit their Series A Preferred stock certificate and a completed Letter of Transmittal to any TowneBank branch location or the conversion agent, Registrar and Transfer Company, at 10 Commerce Drive, Cranford, NJ 07016, Attention: Daniel Flynn.Holders of Series A Preferred may contact Registrar and Transfer Company at 1-800-368-5948 or Debbie Todd, TowneBank's Investor Relations Officer, at 757-638-6794 for more information. 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 Virginia.