Nov 29 - The board of directors of TowneBank, Portsmouth, Va., (Nasdaq:TOWN) has approved a 12.5 percent increase in the quarterly common stock cash dividend to 9 cents per common share, or 36 cents per common share on an annual basis. The board of directors on Nov. 28, 2012, declared its fourth-quarter shareholder cash dividend of 9 cents per common share payable on Dec. 28, 2012, to shareholders of record on Dec. 7, 2012.
Also on Nov. 28, 2012, 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 Jan. 2, 2013, to the shareholder of record as of Dec. 17, 2012.
This is the fifth 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.