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Press Releases

FOR IMMEDIATE RELEASE TOWNEBANK ANNOUNCES ACQUISITION OF THE BANK OF CURRITUCK July 16, 2010-Suffolk, VA -- Hampton Roads based TowneBank (NASDAQ:TOWN) announced today that it has signed a purchase and assumption agreement to acquire all the deposit accounts of The Bank of Currituck and its six banking offices in northeastern North Carolina, including three banking offices on the Outer Banks. The transaction also involves all the purchase of a substantial portion of the Moyock-headquartered bank's loan portfolio and all its other banking assets. The transaction is expected to provide TowneBank with approximately $173 million in assets, including approximately $96 million in performing loans, and approximatley $173 million in deposit accounts. In addition to its assumption of the deposit accounts and certain other liabilities, TowneBank has agreed to pay The Bank of Currituck $10 million in cash, subject to certain adjustments. The transaction is expected to close this fall and is expected to be accretive to TowneBank's earnings in the first full year following the transaction. The agreement is subject to various closing conditions and regulatory approvals, as well as the approval of The Bank of Currituck's shareholders. Following the closing of the transaction, The Bank of Currituck will cease operation as a commerical bank and will manage the assets it retains in the transaction, including certain performing and non-performing loans as well as all other real estate owned. The Board of The Bank of Currituck anticipates the winding up of the Bank's business over the 36 months following the closing of the transaction and making distributions to its shareholders at that time. "Subject to the receipt of the regulatory approval, The Bank of Currituck anticipates that it will make an initial distribution to shareholders of approximately $100 per share as soon as practicable after the closing of the transaction." "Having The Bank of Currituck join our TowneBank family is a unique opportunity for our bank to expand our special style of hometown banking into Northeastern North Carolina and the Outer Banks," stated G.Robert Aston, Jr., Chairman and Chief Executive Officer. "It fits perfectly into our strategic goal of serving those communities within the reach of the Hampton Roads media market stretching from Williamsburg to the Outer Banks. The Bank of Currituck has a great legacy as a hometown bank having served its community since 1920. We look forward to welcoming the directors, employees and customers to our Towne family." Upon closing of the proposed transaction, TowneBank of Currituck will be created as a new member of TowneBank's Hometown Banking Group. The current directors of The Bank of Currituck will join its regional board. Tommy Moore, former President and CEO and a current director of The Bank of Currituck, stated,"The management and directors of the Bank believe that we have found the best solution to allow the Bank to continue to provide its high level of community banking services in these difficult times. TowneBank has the same core principles we do and will serve our customers and our communities in a manner that will make us all proud." Matthew A.R. Converse, president and CEO since 2008, believes the success of the merger lies in the strengths the two banks share. "We have great tradition and passion for our North Carolina communities," he said. "TowneBank is no different in their commitment to Hampton Roads. It is an extraordinary organization that will make us stronger, more viable force in the markets we serve." As one of Virginia's top community banks, TowneBank now operates 18 banking offices in Chesapeake, Hampton, Portsmouth, Newport News, Virginia Beach, Norfolk, Williamsburg and York County. Towne also offers a full range of finanical services through its controlled divisions and subsidiaries that include Towne Investment Group, Towne Insurance Agency,TFA Benefits, TowneBank Mortgage, TowneBank Commerical 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 $3.69 billion as of March 31, 2010, TowneBank is one of the largest banks headquartered in Virginia.

Community Corner

May 2010

May's Employee of the Month award goes to Sandy Planetta. Sandy began as a part time teller five years ago. She is now the Head Teller for our Moyock branch. Pictured with Sandy is Jamie Pittman, Assistant Branch Manager and Matt Converse, CEO. Way to go!

Every year The Bank of Currituck participates in the annual Currituck County Relay for Life and the annual Dare County Relay for Life. This year we raised a total of $1983.28. We held yard sales, raffles, bake sales, etc to raise money so that we could help support the fight against cancer. Way to go team!

April 2010

April's Employee of the Month goes to Sherry Painter. Sherry has been with the Bank for 26 years. In those 26 years she has held titles such as New Accounts, Administrative Assistant Cashier, and now is currently our Compensation and Benefits Manager. Presenting her with her award is Matt Converse, President and CEO. Way to go Sherry!

Members of The Bank of Currituck presented a $500.00 check supporting the upcoming Nags Head Woods 5-K benefiting the Outer Banks Community Foundation. The run will be held on May 8th. Pictured are The Bank of Currituck employees (from left) John Caddy, Maureen Snyder, and Hunter Nelson, who will be participating in the run. Ali Breaux of the North Banks Rotary Club is accepting the check from Jack Crawford, Executive Vice President and Outer Banks Executive. Good Luck Guys!

March 2010

Congratulations to Julie Prayner for receiving March's Employee of the Month award. Julie joined the Bank five years ago as a teller , and is now our Human Resources Manager. Congrats Julie!

The Bank of Currituck helped contribute money towards the Lower Currituck Food Pantry. Receiving a check for $300.00 from John Caddy; Vice President, Grandy Branch Manager and Lender (left) is David Blackman and Harold Petrey.