Towne Bank reported unaudited earnings results for the third quarter and nine months ended September 30, 2009. Net income available to common shareholders was $4.78 million after accretion and preferred dividend payments of $2.34 million on the Bank's preferred equity issued during the third and fourth quarters of 2008. The company reported net income available to common shareholders of $6.415 million for the third quarter of 2008. Accordingly fully diluted earnings per common share were reduced to $0.19 per share as compared to $0.25 for the prior year. For the third quarter, net interest income was $26.36 million, an increase of 14.98% over last year of $22.927 million. The increase in net interest income was driven primarily by loan growth of $298.54 million, representing a 13.57% increase over last year. The company reported pretax income of $10.367 million compared to $9.029 million for the same period of last year. Book value per common share was $11.91 as of September 30, 2009 compared to book value per common share of $11.23 as of September 30, 2008. The bank reported return on average assets of 0.80%, return on average equity of 6.45% and return on common equity of 6.42% compared to return on average assets of 0.89%, return on average equity of 8.32% and return on common equity of 9.49% for the same period of last year. For the nine months, the bank reported return on average assets of 0.79%, return on average equity of 6.23% and return on common equity of 5.64% compared to return on average assets of 0.92%, return on average equity of 8.86% and return on common equity of 9.29% for the same period of last year. The company reported pretax income of $28.303 million, net income available to common shareholders of $12.348 million or $0.49 per diluted share on net interest income of $72.251 million compared to pretax income of $25.959 million, net income available to common shareholders of $18.449 million or $0.73 per diluted share on net interest income of $64.815 million for the same period of last year.

Towne Bank announced that its board of directors on October 28, 2009 declared a quarterly cash dividend of $2.00 per preferred share on its 8% Non-Cumulative Convertible Preferred Stock, Series A. The dividend is payable on December 1, 2009 to shareholders of record on November 17, 2009.

Towne Bank announced that its board of directors on September 23, 2009 declared a cash dividend of $12.50 per share on its Series B fixed-rate non-cumulative perpetual preferred stock. This preferred dividend is payable on November 16, 2009, to the shareholder of record as of November 2, 2009.