Aug 29 - Hampton Roads based TowneBank (Nasdaq: TOWN) has announced that its board of directors on Aug. 28, 2013, declared its third-quarter shareholder cash dividend of 10 cents per common share payable on Oct. 11, 2013, to shareholders of record on Sept. 27, 2013. The quarterly common stock cash dividend of 10 cents per common share, or 40 cents per common share on an annual basis, is an 11.1 percent 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., CEO 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 Aug. 27, 2013, the current annual dividend equates to a yield of $2.81 percent."
Also, on Aug. 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 Oct. 1, 2013, to the shareholder of record as of Sept. 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.
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.