Eastern Virginia Bankshares, Inc. Announces Closing of $45.0 Million Private Placement

 Eastern Virginia Bankshares, Inc. Announces Closing of $45.0 Million Private

PR Newswire

TAPPAHANNOCK, Va., June 12, 2013

TAPPAHANNOCK, Va., June 12, 2013 /PRNewswire/ --Eastern Virginia Bankshares,
Inc. (NASDAQ: EVBS) (the "Company") announced today the closing of the
previously announced $45.0 million private placements with affiliates of
Castle Creek Capital Partners ("Castle Creek") and GCP Capital Partners ("GCP
Capital") and certain other institutional investors pursuant to which the
Company issued 4,649,919 newly issued shares of the Company's common stock and
5,240,192 shares of a new series of non-voting mandatorily convertible
non-cumulative preferred stock, each at $4.55 per share (the "Private

The Company intends to use the gross proceeds from the Private Placements for
general corporate purposes, including, without limitation, the strengthening
of its balance sheet, the accelerated resolution and disposition of assets
adversely classified by the Company and the optimization of its balance sheet
through the restructuring of Federal Home Loan Bank advances, with ultimate
goals of repurchasing its preferred stock and warrants issued to the U.S.
Treasury through the Troubled Asset Relief Program and exiting from the
previously disclosed Written Agreement with the Federal Reserve Bank of
Richmond and the Virginia Bureau of Financial Institutions.

Keefe, Bruyette & Woods, Inc. ("KBW") acted as the exclusive placement agent
for the Company and Troutman Sanders LLP acted as legal advisor to the
Company. Wachtell, Lipton, Rosen & Katz acted as legal advisor to Castle
Creek. DLA Piper LLP (US) acted as legal advisor to GCP Capital. Patton
Boggs LLP acted as legal advisor to KBW.

Forward-Looking Statements

Certain statements contained in this release that are not historical facts may
constitute "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. In addition, certain statements may be
contained in the Company's future filings with the SEC, in press releases, and
in oral and written statements made by or with the approval of the Company
that are not statements of historical fact and constitute forward-looking
statements within the meaning of such Acts. Words such as "believes,"
"anticipates," "expects," "intends," "targeted," "continue," "remain," "will,"
"should," "may" and other similar expressions are intended to identify
forward-looking statements but are not the exclusive means of identifying such

Although the Company believes that its expectations with respect to the
forward-looking statements are based upon reliable assumptions and projections
within the bounds of its knowledge of its business and operations, there can
be no assurance that actual results, performance, actions or achievements of
the Company will not differ materially from any future results, performance,
actions or achievements expressed or implied by such forward-looking
statements. Readers should not place undue reliance on such statements, which
speak only as of the date of this report. The Company does not undertake any
steps to update any forward-looking statement that may be made from time to
time by it or on its behalf.

Contact: Adam Sothen
Chief Financial Officer
Voice: (804) 443-8404
Fax: (804) 445-1047

SOURCE Eastern Virginia Bankshares, Inc.

Website: http://www.bankevb.com
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