TWNE Towne Bancorp Inc (CE)

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.�