TowneBank CompletesThe Bank of Currituck Acquisition for $8M

Hampton Roads based TowneBank TOWN announced that, at the close of business on December 3, 2010, it completed the previously announced acquisition of the six banking offices of The Bank of Currituck, including all deposit accounts representing approximately $155 million. Selected loans were also included totaling $86 million, before purchase accounting adjustments. Under the terms of the transaction, The Bank of Currituck has surrendered its banking charter and will be renamed Currituck Resolution Properties, Inc. The corporation will continue to manage the assets it retained in the transaction including foreclosed properties, non-performing and performing loans of approximately $31 million. It anticipates liquidation of its assets over the next three years and distributing any excess funds to its shareholders at that time. Current Bank of Currituck shareholders will be receiving $50.00 per share from the consummation of the transaction with TowneBank. At closing, TowneBank paid approximately $8 million in an all cash transaction. TowneBank expects the acquisition to be accretive to earnings during the first full year.