TowneBank: Ruby slippers

Focusing on its own community is what TowneBank (Nasdaq:TOWN) is all about. While other banks travel over the rainbow in search of profits, Towne is proving there is no place like home, reaping profits by concentrating on its own back yard.

Hometown efforts are keeping TowneBank above the fray. Net income grew 7% to $6.41 million in the quarter through September from the previous year. Quarterly earnings increased 4% to $0.25 per share. Year-to-date earnings were up 6% to $0.73.

In releasing the third-quarter results, TowneBank said it remains focused on growth strategies in the history-rich Hampton Roads region in southeast Virginia. The bank, with market capitalization of $510 million, runs 17 banking offices in Chesapeake, Hampton, Portsmouth, Newport News, Virginia Beach, Norfolk, Williamsburg and York County. Founded in 1998, Portsmouth, Va.-based TowneBank is the largest bank headquartered in Hampton Roads.

The sound local economy is buoyed by a large year-round harbor, which provides commerce and supports military facilities, and by extensive waterfront property. Real estate has been relatively stable through the mortgage debacle: September’s median sale price was $218,500 for existing homes, down 5.4% from August and 2.8% from year-ago, according to the Virginia Beach-based Real Estate Information Network. The median price for a new home in South Hampton Roads was down 17%, and the number of new homes sold rose to 199 from 186 a year ago.

TowneBank says it has no exposure to subprime mortgages. It has increased . . .

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