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Eastern Virginia Bankshares
217 Duke Street
Tappahannock, VA 22560
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Contact: Ron Blevins
Vice President & Chief Financial Officer
Voice: 804/443-8423
Fax: 804/445-1047
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January 16, 2003
For Immediate Release
Eastern Virginia Bankshares Announces Record Earnings, Declares Dividend
Tappahannock, VA. - Eastern Virginia Bankshares (NASDAQ:EVBS) today reported record income for both the fourth quarter and the year ended December 31, 2002.
EVBS reported fourth quarter net income of $1.62 million, or $0.33 per share, and $6.65 million or $1.36 per share for the year ended December 31, 2002. For the quarter ended December 31, 2002, net income increased $516 thousand, or 46.7% from fourth quarter 2001 net income of $1.10 million. Earnings per share increased $0.10 per share from $0.23 per share in the same quarter of 2001. Net income increased $1.77 million, or 36.3%, and earnings per share increased 37 cents or 37.4% for the year ended December 31,2002. The primary factors in the earnings increase have been a significant increase in net interest income fueled by record loan growth, improved margins, and a reduction in the provision for loan losses, as nonperforming assets decreased by 26%, compared to 2001 year end. President and CEO Joe Shearin stated, "Despite costs associated with re-engineering efforts, the Company enjoyed record earnings for 2002, the strongest in the Company's history. Key components attributable to this unprecedented success include strong growth in earning assets and increased non-interest income. Further EVB anticipates that the restructure effort at the holding company level will take advantage of economies of scale and efficiencies."
The Company's return on average equity (ROE) and return on average assets (ROA) were 12.31% and 1.21%, respectively, for the quarter ended December 31, 2002, compared to 9.19% and 0.96%, respectively for the fourth quarter of 2001. EVB's ROE and ROA were 13.33% and 1.33%, respectively for the year 2002 compared to 10.47% and 1.13% for the year ended December 31, 2001. At 2002 year end, the Company's total assets were $540.3 million, a 15.6% increase from the $467.3 million reported one year ago.
President and CEO Joe Shearin is also pleased to announce that the Board of Directors declared a regular quarterly dividend of $0.14 per share, payable February 10, 2003, to shareholders of record on January 30, 2003.
Eastern Virginia Bankshares, the parent company for Bank of Northumberland, Hanover Bank and Southside Bank, operates 16 retail branches in the counties of Caroline, Essex, Gloucester, Hanover, King William, Lancaster, Middlesex, and Northumberland. The Company has announced two new branches to be opened in 2003, one each in Gloucester and King William Counties.
This press release may contain "forward-looking statements" within the meaning of federal securities laws. Although EVB believes that its expectations concerning certain forward-looking statements are based upon reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results and performance achievements of the Company will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.
Selected Financial Information (dollars in thousands, except per share data)
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12/31/02 |
12/31/01 |
| Interest income |
$8,912 |
$8,331 |
| Interest expense |
2,877 |
3,634 |
| Net interest income |
6,035 |
4,697 |
| Provision for loan losses |
350 |
1,064 |
| Noninterest income |
861 |
727 |
| Noninterest expense |
4,372 |
2,995 |
| Income tax expense |
554 |
261 |
| Net income |
$1,620 |
$1,104 |
| Earnings per share, basic and assuming dilution |
$0.33 |
$0.23 |
| Return on average assets |
1.21% |
0.96% |
| Return on average equity |
12.31% |
9.19% |
| Net interest margin |
4.88% |
4.44% |
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12/31/02 |
12/31/01 |
| Interest income |
$34,617 |
$32,903 |
| Interest expense |
12,107 |
15,373 |
| Net interest income |
22,510 |
17,530 |
| Provision for loan losses |
1,515 |
2,183 |
| Noninterest income |
3,152 |
2,643 |
| Noninterest expense |
14,952 |
11,460 |
| Income tax expense |
2,546 |
1,650 |
| Net income |
$6,649 |
$4,880 |
| Earnings per share, basic and assuming dilution |
$1.36 |
$0.99 |
| Return on average assets |
1.33% |
1.13% |
| Return on average equity |
13.33% |
10.47% |
| Net interest margin |
4.86% |
4.41% |
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| Balance Sheets |
12/31/02 |
12/31/01 |
| Loans, net of unearned interest |
$399,134 |
$347,997 |
| Total assets |
540,290 |
467,263 |
| Deposits |
469,117 |
408,241 |
| Other borrowings |
15,000 |
6,000 |
| Shareholders' equity |
52,403 |
47,392 |
| Book value per share |
10.79 |
9.67 |
| Allowance for loan losses |
5,748 |
5,234 |
| Nonperforming assets |
3,423 |
4,660 |
| Loan loss reserve % of total loans |
1.44% |
1.50% |
| Net charge offs % of total loans |
0.26% |
0.43% |
| Nonperforming assets % of total loans and other real estate |
0.86% |
1.34% |
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