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Eastern Virginia Bankshares
307 Church Lane
Tappahannock, VA 22560
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Contact: Ron Blevins
Vice President & Chief Financial Officer
Voice: 804/443-8423
Fax: 804/443-3501
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October 22, 2001
For Immediate Release
Eastern Virginia Bankshares Announces Earnings, Declares Dividend
Tappahannock, VA. - Eastern Virginia Bankshares (NASDAQ:EVBS) today reported third quarter net income of $1.28million, or $.26 per share, and $3.78 million or $.77 per share for the nine months ended September 30, 2001.
For the quarter ended September 30, 2001, net income decreased $103 thousand or 7.5% from third quarter 2000 net income of $1.38 million. Earnings per share decreased $.02 from $.28 per share in the same quarter of 2000. Net income decreased 11.8% and earnings per share decreased 11.5% for the nine months ended September 30,2001, compared to the same period in 2000. The primary factor in the third quarter earnings decrease was a $460 thousand increase in loan loss provision in recognition of a slower economy and an increase in nonperforming loans, absent which quarterly earnings would have increased significantly. The primary factors in the year to date earnings decrease are the increase in loan loss provision, a one-time extraordinary expense in the second quarter to record the cost of supplemental retirement benefits, and expenses related to the startup of a new bank and four new branches within the last 15 months. President and CEO Ned Stephenson stated "While the establishment of a new bank and addition of four new branches in dynamic growth areas is dilutive to current earnings, we believe the investment is in the best interest of our shareholders in providing for long-term value."
The Company's return on average equity (ROE) and return on average assets (ROA) were 10.86% and 1.16%, respectively, for the quarter ended September 30, 2001, compared to 12.96% and 1.40%, respectively for the third quarter of 2000. Annualized ROE and ROA were 10.95% and 1.19%, respectively for the nine months ended September 30, 2001, compared to 13.51% and 1.46% for the nine months ended September 30, 2000.
EVB entered the Lancaster County market with the opening of an office in Kilmarnock in January and has opened two new offices in Hanover County.
President and CEO Ned Stephenson is also pleased to announce that the Board of Directors declared a dividend of $0.13 per share, payable November 10, 2001, to shareholders of record on October 29, 2001.
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.
Selected Financial Information (dollars in thousands, except per share data)
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9/30/01 |
9/30/00 |
| Interest income |
$8,278 |
$7,766 |
| Interest expense |
3,860 |
3,769 |
| Net interest income |
4,418 |
3,997 |
| Provision for loan losses |
587 |
127 |
| Noninterest income |
641 |
533 |
| Noninterest expense |
2,708 |
2,551 |
| Income tax expense |
486 |
471 |
| Net income |
$1,278 |
$1,381 |
Earnings per share, basic and
assuming dilution |
$0.26 |
$0.28 |
| Return on average assets |
1.16% |
1.40% |
| Return on average equity |
10.86% |
12.96% |
| Net interest margin |
4.36% |
4.43% |
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9/30/01 |
9/30/00 |
| Interest income |
$ 24,572 |
$ 22,731 |
| Interest expense |
11,739 |
10,594 |
| Net interest income |
12,833 |
12,137 |
| Provision for loan losses |
1,119 |
398 |
| Noninterest income |
1,916 |
1,571 |
| Noninterest expense |
8,465 |
7,499 |
| Income tax expense |
1,389 |
1,531 |
| Net income |
$ 3,776 |
$ 4,280 |
Earnings per share, basic and
assuming dilution |
$ 0.77 |
$ 0.87 |
| Return on average assets |
1.19% |
1.46% |
| Return on average equity |
10.95% |
13.51% |
| Net interest margin |
4.39% |
4.55% |
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| Loans, net of unearned interest |
$ 328,096 |
$ 290,758 |
| Total assets |
449,823 |
398,712 |
| Deposits |
391,746 |
344,561 |
| Other borrowings |
6,000 |
7,000 |
| Shareholders' equity |
47,703 |
43,711 |
| Book value per share |
9.74 |
8.53 |
| Allowance for loan losses |
5,004 |
4,353 |
| Nonperforming assets |
5,077 |
2,365 |
| Loan loss reserve % of total loans |
1.52% |
1.49% |
Nonperforming assets % of total
loans and other real estate |
1.55% |
0.81% |
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