TowneBank Announces Completion of Subordinated Notes Offering

Rhea-AI Summary

TowneBank (Nasdaq: TOWN) has successfully completed a public offering of $250 million in 3.125% fixed-to-floating rate subordinated notes due 2032. The notes, sold at par, generated net proceeds of approximately $247 million after expenses. The bank plans to utilize these funds for various corporate purposes, including redeeming existing subordinated notes, financing growth, share repurchases, and enhancing regulatory capital. Piper Sandler & Co. served as the sole book-running manager for this offering.

Positive

• Raised $247 million in net proceeds from the offering.
• Funds will support growth initiatives and enhance regulatory capital.

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• None.

SUFFOLK, Va., Feb. 09, 2022 (GLOBE NEWSWIRE) -- TowneBank (Nasdaq: TOWN) announced today the completion of its public offering and sale of $250 million of its 3.125% fixed-to-floating rate subordinated notes due 2032 (the “Notes”). The Notes were sold at par, resulting in net proceeds, after discounts and estimated offering expenses, of approximately $247 million.

TowneBank intends to use the net proceeds of this offering for general corporate purposes, which may include, among other things, redeeming TowneBank’s 4.5% fixed-to-floating rate subordinated notes due 2027 after they become callable on July 30, 2022, financing organic growth or strategic acquisitions, repurchases of shares of its common stock, supporting regulatory capital levels, and ongoing working capital needs.

Piper Sandler & Co. acted as sole book-running manager for the offering.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the Notes in the offering, nor shall there be any sale of the Notes in the offering in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful under the securities laws of any such jurisdiction.

About TowneBank:

Founded in 1999, TowneBank is a company built on relationships, offering a full range of banking and other financial services, with a mission of serving others and enriching lives. Dedicated to a culture of caring, TowneBank values all employees and members by embracing their diverse talents, perspectives, and experiences.

Today, TowneBank operates over 40 banking offices throughout Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina – serving as a local leader in promoting the social, cultural, and economic growth in each community. TowneBank offers a competitive array of business and personal banking solutions, delivered with only the highest ethical standards. Experienced local bankers providing a higher level of expertise and personal attention with local decision-making are key to the TowneBank strategy. TowneBank has grown its capabilities beyond banking to provide expertise through its controlled divisions and subsidiaries that include Towne Investment Group, Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices Towne Realty, Towne 1031 Exchange, LLC, and Towne Vacations. With total assets of $16.36 billion as of December 31, 2021, TowneBank is one of the largest banks headquartered in Virginia.

Forward-Looking Statements:

This press release contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only the beliefs, expectations, or opinions of TowneBank and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward-looking statements may be identified by the use of such words as: “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional terms, such as “will,” “would,” “should,” “could,” “may,” “likely,” “probably,” or “possibly.” These statements may address issues that involve significant risks, uncertainties, estimates, and assumptions made by management. Any forward-looking statements made by us or on our behalf speak only as of the date they are made or as of the date indicated, and we do not undertake any obligation to update forward-looking statements as a result of new information, future events, or otherwise. For information on the factors that could materially influence forward-looking statements included in this release, see the “Risk Factors” in TowneBank’s Annual Report on Form 10-K for the year ended December 31, 2020 and related disclosures in other filings that have been, or will be, filed by TowneBank with the Federal Deposit Insurance Corporation.

For more information, contact:
G. Robert Aston, Jr. 757-638-6780
William B. Littreal 757-638-6813

FAQ

What was the amount raised by TowneBank in its recent public offering?

TowneBank raised $250 million in its recent public offering of subordinated notes.

What will TowneBank use the proceeds from the note offering for?

TowneBank intends to use the proceeds for general corporate purposes, including redeeming existing notes, financing growth, and supporting regulatory capital.

When are the subordinated notes due that TowneBank plans to redeem?

The subordinated notes that TowneBank plans to redeem are due in 2027 and become callable on July 30, 2022.

Who was the book-running manager for TowneBank's note offering?

Piper Sandler & Co. served as the sole book-running manager for the note offering.