TowneBank Announces Completion of Subordinated Notes Offering
July 17 2017 - 4:53PM
TowneBank (NASDAQ:TOWN) announced today the completion of a public
offering and sale of $250 million in aggregate principal amount of
its 4.50% fixed-to-floating rate subordinated notes due 2027 (the
“Notes”). The Notes were sold at par, resulting in net proceeds,
after discounts and estimated offering expenses, of approximately
$247.1 million. Kroll Bond Rating Agency has assigned a rating of
BBB+ to the Notes.
TowneBank expects to use the net proceeds from the offering for
general corporate purposes, which may include supporting its growth
organically or through strategic acquisitions.
Sandler O’Neill + Partners, L.P. acted as sole book-running
manager for the Notes offering.
This press release is for informational purposes only and shall
not constitute an offer to sell or a solicitation of an offer to
buy the securities, nor shall there be any sale of the securities
in any state or jurisdiction in which such an offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of any such state or jurisdiction. The
securities are neither insured nor approved by the Federal Deposit
Insurance Corporation (the “FDIC”).
About TowneBank
As one of the top community banks in Virginia and North
Carolina, TowneBank operates 37 banking offices serving Chesapeake,
Chesterfield County, Glen Allen, Hampton, James City County,
Mechanicsville, Newport News, Norfolk, Portsmouth, Richmond,
Suffolk, Virginia Beach, Williamsburg, and York County in Virginia,
along with Moyock, Grandy, Camden County, Southern Shores, Corolla
and Nags Head 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, Towne Benefits, TowneBank Mortgage, TowneBank Commercial
Mortgage, Berkshire Hathaway HomeServices Towne Realty, Towne1031
Exchange, LLC, and Beach Properties of Hilton Head. 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 $8.2 billion as of
March 31, 2017, TowneBank is one of the largest banks headquartered
in Virginia.
On April 27, 2017, TowneBank announced the signing of a
definitive agreement to acquire Paragon Commercial Corporation and
its wholly-owned bank subsidiary, Paragon Commercial Bank. Founded
in Raleigh, North Carolina in 1999, Paragon Commercial Bank
provides banking services through highly responsive professionals,
an extensive courier service, online and mobile technologies, free
worldwide ATM access and a select number of strategically placed
offices in Raleigh, Cary and Charlotte, North Carolina. Pending
customary regulatory and shareholder approvals, the merger is
scheduled to close in January 2018. Based on financial data as of
March 31, 2017, the combined company would have total assets of
$9.7 billion, gross loans of $7.1 billion and total deposits of
$7.5 billion.
Forward-Looking Statements
Certain statements contained in this release constitute
forward-looking statements within the meaning of U.S. federal
securities laws. These forward-looking statements speak only
as of the date of this release, are based on current expectations,
and involve a number of assumptions. These include statements
regarding TowneBank’s future economic performance, financial
condition, prospects, growth, strategies and expectations, and
objectives of management, and are generally identified by the use
of words such as “believe,” “expect,” “intend,” “anticipate,”
“estimate,” or “project” or similar expressions. TowneBank
intends such forward-looking statements to be covered by the safe
harbor provisions for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995 and is including
this statement for purposes of these safe harbor provisions. You
should not place undue reliance on forward-looking statements,
which are subject to assumptions that are subject to change.
TowneBank’s ability to predict results, or the actual effect of
future plans or strategies, is inherently uncertain. These
forward-looking statements are subject to a number of factors and
uncertainties that could cause actual results to differ from those
indicated or implied in the forward-looking statements and such
differences may be material. Factors which could have a
material effect on the operations and future prospects of TowneBank
include but are not limited to: changes in interest rates, general
economic and business conditions; legislative/regulatory changes;
the monetary and fiscal policies of the U.S. government, including
policies of the U.S. Treasury and the Board of Governors of the
Federal Reserve System; the quality and composition of TowneBank’s
loan and securities portfolios; demand for loan products; deposit
flows; competition; demand for financial services in TowneBank’s
market area; implementation of new technologies and the ability to
develop and maintain secure and reliable electronic systems;
changes in the securities markets; changes in accounting
principles, policies and guidelines; TowneBank’s ability to
complete and successfully integrate the business of Paragon
Commercial Bank in the expected timeframe, if at all, and to
achieve expected revenue synergies and cost savings from the
merger; and other risk factors detailed from time to time in
filings made by TowneBank with the FDIC. Any forward-looking
statements are qualified in their entirety by reference to the
factors discussed in the section titled “Risk Factors” in
TowneBank’s final offering circular relating to this offering,
including the documents incorporated by reference therein, and
other risks described in documents subsequently filed by TowneBank
with the FDIC from time to time. TowneBank undertakes no
obligation to update or clarify these forward-looking statements,
whether as a result of new information, future events or
otherwise.
For more information contact:
G. Robert Aston, Jr., TowneBank Chairman and CEO, (757) 638-6780
William B. Littreal, TowneBank Chief Investor Relations Officer and CSO, (757) 638-6813
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