Towne Bancorp Announces Addition to Loan Loss Reserves
PHOENIX, Oct 06, 2008 (BUSINESS WIRE) -- Towne Bancorp (OTCBB: TWNE), the holding company for Towne Bank of Arizona, today announced it expects to take additional provision expense of $2.4 million as of September 30, 2008. This will result in a $0.7 million increase in Allowance for Loan and Lease Losses (ALLL), for a total ALLL of $4.9 million.
As of September 30, 2008, the Bank will also reduce the book value of its OREO by $1.2 million to reflect a continued softening in the real estate market.
"Given current economic events and the reduction in real estate prices in Arizona, we believe that adding to the ALLL and writing down certain foreclosed real estate (OREO) is prudent," commented Patrick F. Patrick, President and Chief Executive Officer of Towne Bancorp. Patrick added, "In addition, we will maintain our strong capital position, with total risk-based capital of approximately 23% of risk weighted assets, well in excess of well-capitalized regulatory guidelines."
SOURCE: Towne Bancorp