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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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July 19, 2002
For Immediate Release
Eastern Virginia Bankshares Announces Record Earnings, Increases Dividend
Tappahannock, VA. - Eastern Virginia Bankshares (NASDAQ:EVBS) today reported record quarter and year to date net income, announced a dividend increase, and reported that total assets have exceeded $500 million.
EVBS reported second quarter net income of $1.82 million, or $0.37 per share, and $3.43 million or $0.70 per share for the six months ended June 30, 2002. For the quarter ended June 30, 2002, net income increased $664 thousand or 57.7% from second quarter 2001 net income of $1.15 million. Earnings per share increased $0.14 per share from $0.23 per share in the same quarter of 2001. Net income increased 37.2% and earnings per share increased 37.3% for the six months ended June 30,2002, compared to the same period in 2001. The primary factors in the quarter and year to date earnings increase have been a significant increase in net interest income fueled by record loan growth and improved margins, and the prior year impact of a one-time extraordinary expense in the second quarter. President and CEO Ned Stephenson stated "The Company continues to strive for growth in earnings and assets, and the recent quarter showed much progress in both. Operating in three distinct markets gives us a unique opportunity to achieve improved earnings and growth, all within our mission as community bankers".
The Company's return on average equity (ROE) and return on average assets (ROA) were 14.92% and 1.49%, respectively, for the quarter ended June 30, 2002, compared to 9.91% and 1.09%, respectively for the second quarter of 2001. Annualized ROE and ROA were 14.33% and 1.44%, respectively for the six months ended June 30, 2002, compared to 11.04% and 1.21% for the six months ended June 30, 2001. As of June 30, 2002, the Company also achieved a milestone as it surpassed $500 million in assets, compared to less than $433 million one year ago.
President and CEO Ned Stephenson is also pleased to announce that the Board of Directors increased the quarterly dividend 7.7% to $0.14 per share as it declared a dividend of $0.14 payable August 9, 2002, to shareholders of record on July 29, 2002.
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.
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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6/30/02 |
6/30/01 |
| Interest income |
$8,612 |
$8,248 |
| Interest expense |
3,045 |
3,948 |
| Net interest income |
5,567 |
4,300 |
| Provision for loan losses |
360 |
268 |
| Noninterest income |
802 |
654 |
| Noninterest expense |
3,480 |
3,115 |
| Income tax expense |
712 |
420 |
| Net income |
$1,817 |
$1,151 |
| Earnings per share, basic and assuming dilution |
$0.37 |
$0.23 |
| Return on average assets |
1.49% |
1.09% |
| Return on average equity |
14.92% |
9.91% |
| Net interest margin |
4.92% |
4.41% |
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6/30/02 |
6/30/01 |
| Interest income |
$16,971 |
$16,294 |
| Interest expense |
6,151 |
7,879 |
| Net interest income |
10,820 |
8,415 |
| Provision for loan losses |
785 |
532 |
| Noninterest income |
1,526 |
1,275 |
| Noninterest expense |
6,848 |
5,757 |
| Income tax expense |
1,284 |
903 |
| Net income |
$3,429 |
$2,498 |
| Earnings per share, basic and assuming dilution |
$0.70 |
$0.51 |
| Return on average assets |
1.44% |
1.21% |
| Return on average equity |
14.33% |
11.04% |
| Net interest margin |
4.93% |
4.44% |
| Loans, net of unearned interest |
$383,678 |
$316,584 |
| Total assets |
500,741 |
432,856 |
| Deposits |
429,720 |
376,294 |
| Other borrowings |
15,000 |
6,000 |
| Shareholders' equity |
50,163 |
46,733 |
| Book value per share |
10.27 |
9.51 |
| Allowance for loan losses |
5,691 |
4,654 |
| Nonperforming assets |
4,049 |
3,363 |
| Loan loss reserve % of total loans |
1.48% |
1.47% |
| Nonperforming assets % of total loans and other real estate |
1.05% |
1.06% |
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