CONSUMER PRIVACY NOTICE

This consumer privacy notice is provided on behalf of the following companies within the TowneBank Family of Companies:

• TowneBank

• TowneBank Mortgage

• Towne Mortgage, LLC

• NewTowne Mortgage, LLC

• Towne Investment Group

• TowneBank Commercial Mortgage

• Towne Insurance Agency, Inc.

• TFA Benefits

• Prudential Towne Realty, LLC

• Corolla Classic Vacations

• Towne 1031 Exchange, LLC

• Virginia Home Title & Settlements

OUR COMMITMENT TO YOU

The TowneBank Family of Companies value you as a member and recognize the importance of protecting your financial information. We are committed to protecting the privacy, confidentiality and security of your financial information.

This Consumer Privacy Notice applies only to consumers who use our services or products primarily for personal, family or household purposes. This Notice is to inform you of the types of information we collect, the circumstance under which we may share the information with nonaffiliated third parties and within the TowneBank Family of Companies, and how we use and protect that information.

The policies and procedures described in this Privacy Notice are subject to change, but we will notify you of any significant changes. This Notice replaces any previous Privacy Notice issued.

OUR PRIVACY POLICY

Categories of Information We May Collect

We collect information about you to help serve your financial needs, offer new products or services, and most importantly to provide you with exquisite member service. We may collect the following categories of information about you:

• Information we receive from you on loan or insurance applications, personal financial statements, or from other oral, written or electronic communications. This information would include your name, address, social security number, assets, liabilities and income information.

• Information about your transactions with any of the companies within the TowneBank Family of Companies, such as your account balance, payment history, parties to transactions, and credit card usage.

• Information we receive from third parties, such as providers of services in connection with your transactions, and information from consumer-reporting agencies, such as your creditworthiness and credit history.

• Information we may obtain from motor vehicle reports or medical reports to underwrite your request for insurance products.

• Information collected from our Internet web sites, such as information you provide to us and information necessary to manage your online sessions with us.

Disclosure of Information to Third Parties

We do notdisclose any information about our members or former members to any nonaffiliated third parties other than to process our members’ accounts, and as required or otherwise permitted by law. This means we haveopted out on your behalf for this type of information sharing outside of the TowneBank Family of Companies.We only share the information we collect, as previously described, with:

• Service providers that perform business operations for us (such as check printing and online banking services);

• Companies that perform marketing services on our behalf, or companies with whom we have joint servicing or marketing agreements (such as investment and asset management services, personal insurance products, and credit card products); and

• Others only as permitted or required by law (such as in response to subpoenas and information reported to consumer-reporting agencies).

Any medical or health information we collect about you will be disclosed to third parties only to underwrite insurance or administer your policy or claim, as permitted by law, or as authorized by you.

We very carefully select the companies that provide services on our behalf. These companies are required to safeguard your information and use it only for authorized purposes.

If you close your account, or your relationship becomes inactive, we will handle your information in accordance with this Notice and in accordance with your consumer privacy preference.

Information We May Share Within the TowneBank Family of Companies

As a valued TowneBank member, we want to ensure that your financial needs are being met. We may share information within the TowneBank Family of Companies in order to provide you with the best in financial service, and to keep you updated on any new or expanded products and services. Such opportunities may be communicated to you in the form of marketing brochures or mailings.

Unless you tell us not to, we may share information we have about our experiences or transactions with you or your account (such as account balances and payment history) and identification information (such as your name and address) within the TowneBank Family of Companies. Also, unless you tell us not to, we may share other information about you within the TowneBank Family of Companies such as:

1. Information that may be obtained from account applications or other forms, such as your assets, employment history, liabilities and income information;

2. Information we obtain from a credit bureau, such as your credit history; and

3. Information we obtain from others to verify information provided by you, such as your credit or other relationships with third parties.

Companies within the TowneBank Family of Companies that may receive this information include the bank, mortgage companies, broker-dealers, insurance agencies, employee benefit companies, real estate agencies, property management companies, and title and escrow companies.

Your Right to Tell us Not to Share Certain Information

Within the TowneBank Family of Companies

If you do not wish us to share any information about you within the TowneBank Family of Companies (commonly known as “opting-out”), please complete and mail to us the Consumer Privacy Preference Form¹. Of course, you may also contact your TowneBank hometown banker or affiliated company for assistance. We will process your request as soon as we reasonably can. If you have previously informed us of your preference, you do not need to do so again.

By selecting “Opt-Out” status, you will also restrict the use of your personal information in any marketing solicitation activities conducted by the companies in the TowneBank Family of Companies with which you do not do business. This exclusion does not apply, however, to any of the Companies with which you currently do business or if you ask to receive information or offers from them. Also, we may continue to send you product and other marketing information in your regular account mailings and statements, including online communications.

For a joint account (account held by two or more consumers), a request from either one of them “not to share” will apply to all joint accountholders. This request will be in effect until such time we receive a written request from you changing your sharing status.

Confidentiality, Security and Integrity of Information

Our employees are also committed to safeguarding member information and preventing its unauthorized access, disclosure or use. We provide on-going privacy training, and restrict access to nonpublic personal information to those employees who need to know the information in order to provide a product or service to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. We require anyone to whom we disclose your non-public personal information to protect its confidentiality and to use it solely for the purpose for which it is disclosed.

It is important that the information we maintain about you is accurate and complete. If you see information in your monthly statement(s) or elsewhere, which suggests that our information is incomplete or inaccurate, please contact us.

Click here to print the Consumer Privacy Preference Form¹

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¹Special Notice to California and Vermont Residents – In accordance with applicable state privacy laws, we will treat accounts with California and Vermont mailing addresses as if you have elected to opt-out.