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 Virginia.