Eastern Virginia Bankshares 330 Hospital Road Tappahannock, VA 22560 Contact: Ron Blevins Chief Financial Officer Voice: 804/443-8423 Fax: 804/445-1047 April 12, 2004 For Immediate Release Eastern Virginia Bankshares Announces Record Earnings Tappahannock, VA - Eastern Virginia Bankshares (NASDAQ:EVBS) today reported record first quarter 2004 earnings of $1.91 million, up 11.8% from the first quarter of 2003. Earnings per share were $0.39, up 11.4% from the $0.35 earned in the first quarter of 2003. EVB's first quarter 2004 results produced an annualized return on average equity (ROE) and an annualized return on average assets (ROA) of 13.42% and 1.14%, respectively, compared to 13.20% and 1.29%, respectively, for the first three months of 2003. The record first quarter was driven by a $1.18 million, or 19.3%, increase in net interest income and an increase of $301 thousand, or 34.9%, in noninterest income, partially offset by an increase of $43 thousand in loan loss provision expense and an increase of $1.2 million in noninterest expense, including $525 thousand related to new branches opened or acquired in 2003. Total assets increased by $134.8 million, or 24.7%, compared to one year ago, reaching a record level of $681.3 million at March 31, 2004. Average loans for the quarter of $487.1 million were up $83.8 million or, 20.8%, compared to $403.3 million in the first quarter of 2003. Average deposits of $578.9 million were an increase of $111.6 million, or 23.9%, compared to $467.3 million in the same quarter of 2003. $28.3 million of the loan growth and $66 million of the deposit increase are attributed to the purchase of three BB&T/First Virginia Bank-Hampton Roads branches in September 2003. EVB's nonperforming asset level decreased in the first quarter to its lowest level in the history of the Company. Nonperforming assets as a percentage of total loans decreased to 0.76%, compared to 0.96% at March 31, 2003 and 0.84% at 2003 year end. Annualized net charge-offs were 0.16% of average loans for the quarter, compared to 0.08% in the first quarter of 2003 and 0.21% for the full year 2003. During the quarter the loan loss reserve increased $152 thousand to $6.65 million, or 1.36%, of total loans outstanding. President and CEO Joe Shearin stated "we continue to be pleased and excited about the progress of our three new branches in Southern Virginia. The entire market has embraced our community bank model which promotes local decision making and outstanding service quality. We are pleased to bring you record earnings for the first quarter of 2004 and to report sequentially increased earnings per share for the fifth consecutive quarter. Your management team is committed to enhancing shareholder value. We continue to strive to institute best practices throughout our organization, as we endeavor to make our entire company the Best of the Best. On behalf of the Board of Directors, we thank you for your continued investment in our company." Eastern Virginia Bankshares, the parent company for Bank of Northumberland, Hanover Bank and Southside Bank, operates 20 retail branches located in the counties of Caroline, Essex, Gloucester, Hanover, King William, Lancaster, Middlesex, Northumberland, Southampton, Surry and Sussex. The Company's stock trades on the NASDAQ Small Cap Market System under the symbol EVBS. Forward-Looking Statements Certain information contained in this discussion may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are generally identified by phrases such as "the Company expects," "the Company believes" or words of similar import. Such forward-looking statements involve known and unknown risks including, but not limited to: Risk inherent in making loans such as repayment risks and fluctuating collateral values Interest rate fluctuations Changes in general economic and business conditions Competition within and from outside the banking industry New products and services in the banking industry Problems with technology utilized by the Company Changing trends in customer profiles Integration of newly acquired branches or businesses Changes in laws and regulations applicable to the Company Although the Company believes that its expectations with respect to the forward-looking statements are based upon reliable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results, performance or achievements of the Company will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Eastern Virginia Bankshares Selected Financial Information (dollars in thousands, except per share data) Income Statements Three Months Ended March 31,2004 March 31,2003 Interest income $9,959 $8,773 Interest expense 2,706 2,695 Net interest income 7,253 6,078 Provision for loan losses 340 297 Noninterest income 1,081 787 Gain on securities sale 82 75 Noninterest expense 5,431 4,269 Income tax expense 733 664 Net income $1,912 $1,710 Earnings per share, basic and assuming dilution $0.39 $0.35 Selected Ratios Return on average assets 1.14% 1.29% Return on average equity 13.42% 13.20% Net interest margin 4.83% 4.96%   Balance Sheets March 31,2004 March 31,2003 Loans, net of unearned interest $ 487,823 $ 406,430 Total assets 681,314 546,501 Deposits 582,021 472,509 Other borrowings 36,202 15,000 Shareholders' equity 58,418 53,135 Book value per share 11.99 10.95   Asset Quality Allowance for loan losses 6,648 5,970 Nonperforming assets 3,711 3,920 Net Charge-offs 188 75 Loan loss reserve % of total loans 1.36% 1.47% Nonperforming assets % of total loans and other real estate 0.76% 0.96%