Eastern Virginia Bankshares, Inc. Releases First Quarter 2014 Results

    Eastern Virginia Bankshares, Inc. Releases First Quarter 2014 Results

PR Newswire

TAPPAHANNOCK, Va., April 28, 2014

TAPPAHANNOCK, Va., April 28, 2014 /PRNewswire/ --Eastern Virginia Bankshares,
Inc. (NASDAQ: EVBS) (the "Company"), the one bank holding company of EVB (the
"Bank") reported today its results of operations for the three months ended
March 31, 2014.

Net income available to common shareholders during the three months ended
March 31, 2014 was $1.5 million, or $0.09 per diluted share, compared to net
income of $704 thousand, or $0.12 per diluted share during the same period of
2013. For the three months ended March 31, 2014, the Company reported net
income of $2.0 million, an increase of $916 thousand over the net income of
$1.1 million reported for the same period of 2013. The Company's results
continue to be positively impacted by the extinguishment of long-term Federal
Home Loan Bank advances in the third quarter of 2013, as discussed in greater
detail below. The prepayment of these advances has significantly improved the
Company's financial position and net interest margin as compared to the first
quarter of 2013. The difference between net income and net income available
to common shareholders is the effective dividend to the holders of the
Company's Series A Preferred Stock.

First Quarter Highlights:

  oNet interest margin (tax equivalent basis) increased 70 basis points to
    3.93% for the three months ended March 31, 2014, compared to 3.23% for the
    same period in 2013.
  oNonperforming assets decreased $3.0 million during the first quarter of
    2014 to $8.8 million, or 1.29% of total loans and other real estate owned
    ("OREO") at March 31, 2014, down from 1.80% at the end of the prior
    quarter.
  oNet charge-offs decreased $1.3 million to $111 thousand for the three
    months ended March 31, 2014, down from $1.4 million for the same period in
    2013.
  oProvision for loan losses decreased to $250 thousand for the three months
    ended March 31, 2014, compared to $600 thousand for the same period in
    2013.

For the three months ended March 31, 2014, the following key points were also
significant factors in the Company's reported results:

  oIncrease in net interest income by $1.2 million from the same period in
    2013, principally due to a $1.4 million decrease in interest expense;
  oGain on the sale of available for sale securities of $380 thousand
    resulting primarily from the sale of a portion of the Company's previously
    impaired agency preferred securities (FNMA & FHLMC);
  oExpenses related to FDIC insurance premiums of $332 thousand, compared to
    $587 thousand for the same period in 2013;
  oExpenses related to collection, repossession and OREO of $67 thousand,
    compared to $126 thousand for the same period in 2013; and
  oIncrease in the effective dividend on preferred stock by $142 thousand
    from the same period in 2013 due primarily to the dividend rate on the
    Company's Series A Preferred Stock increasing from 5% to 9% on January 9,
    2014.

The return on average assets ("ROA") and return on average common
shareholders' equity ("ROE"), on an annualized basis, for the three months
ended March 31, 2014 were 0.57% and 6.64%, respectively, compared to 0.26% and
3.75%, respectively, for the three months ended March 31, 2013.

In announcing these results, Joe A. Shearin, President and Chief Executive
Officer commented, "I am very pleased to report that our Company continues to
show improved results, and for the first quarter of 2014 a 84.8% increase in
our net income when compared to the same period last year. The year over year
improvement in our overall financial position and operating results is the
result of our continued focus on our strategic plan, including improving our
asset quality and strengthening our balance sheet through the execution of
previously disclosed strategic initiatives. During the first quarter of 2014,
and as a result of our decision to prepay our long-term Federal Home Loan Bank
advances during the third quarter of 2013, our net interest margin increased
by 70 basis points and 7 basis points when compared to the first and fourth
quarters of 2013, respectively. During the first quarter of 2014 we were able
to reduce net charge-offs by 92.2% when compared to the prior year and
continued to show improvement in our loan and asset quality metrics with
reductions in nonperforming and classified assets of 25.4% and 10.8% during
the period." Shearin further commented, "Throughout the balance of 2014, we
plan to continue evaluating and implementing deliberate strategies to further
strengthen our financial condition, and we will use our strategic and
financial flexibility to focus on growth and opportunities to increase the
value of our company."

Shearin concluded, "I am also very pleased with our announcement earlier this
quarter regarding the termination of the informal memorandum of understanding
with the Federal Reserve Bank of Richmond and the Virginia State Corporation
Commission Bureau of Financial Institutions effective March 13, 2014. The
lifting of the informal memorandum of understanding marks the culmination of
our hard work and execution of strategic initiatives over the last three years
to improve asset quality, increase earnings, and strengthen the overall
condition of the Company and EVB by the board and the management team."

Operations Analysis

Net interest income for the three months ended March 31, 2014 was $9.3
million, an increase of approximately $1.2 million or 15.2% from the same
period of 2013. This increase was due to a 70 basis point increase in the net
interest margin (tax equivalent basis) from 3.23% (includes a tax equivalent
adjustment of $39 thousand) in the first quarter of 2013 to 3.93% (includes a
tax equivalent adjustment of $93 thousand) in the first quarter of 2014. The
year over year decline in interest income was driven by lower yields on the
loan portfolio, charge-offs, and the natural amortization of the portfolio,
partially offset by the impact of higher yields on the investment portfolio
and higher average balances in the loan portfolio. The average investment
securities balance decreased $9.4 million to $278.6 million during the three
months ended March 31, 2014 as compared to the same period in 2013, while the
yield on investment securities increased 49 basis points from 2.30% to 2.79%
for the first quarter of 2014. Average interest bearing deposits in other
banks decreased $42.7 million to $7.5 million during the three months ended
March 31, 2014 as compared to the same period in 2013, while the yield on
these assets increased 2 basis points from 0.20% for the first quarter of 2013
to 0.22% for the first quarter of 2014. This decrease in excess funds was due
largely to the prepayment of $107.5 million in higher rate long-term
borrowings during the third quarter of 2013 and the decrease in our average
deposits from the first quarter of 2013 compared to the same period in 2014.
Average loans increased $4.0 million to $678.1 million during the three months
ended March 31, 2014 as compared to the same period in 2013, while the yield
on these assets decreased 28 basis points from 5.39% for the first quarter of
2013 to 5.11% for the first quarter of 2014. This increase in loans was due
largely to the purchase of $27.2 million in performing one-to-four family
residential mortgage loans in the first quarter of 2014, which was partially
offset by loan decreases caused by weak loan demand in the Company's core
markets, the natural amortization of the loan portfolio, early payment
curtailments on outstanding credits and charge-offs. The decrease in yield on
our average loans was offset by the increase in yield on investment securities
and, as a result, the yield on our average interest-earning assets increased
15 basis points to 4.40% for the three months ended March 31, 2014 as compared
to the same period in 2013. Average interest-earning assets were $964.3
million for the three months ended March 31, 2014, which was a decrease of
approximately $48.2 million or 4.8% from the same period in 2013. Total
average loans were 70.3% of total average interest-earning assets for the
three months ended March 31, 2014, compared to 66.6% for the three months
ended March 31, 2013. The decline in interest income from the first quarter
of 2013 to the first quarter of 2014 was offset by a lower cost of funding.
The Company's lower cost of funding was driven by the prepayment of $107.5
million in higher rate long-term borrowings during August 2013, the maturity
of a $10.0 million higher rate long-term borrowing during September 2013, the
continuation of our deposit re-pricing strategy, reductions in the level of
time deposits, and increased levels of noninterest-bearing demand deposit
accounts and interest-bearing checking and savings accounts with lower rates.
As a result, for the three months ended March 31, 2014 the average cost of
interest-bearing deposits decreased 13 basis points to 0.58%, while the
average cost of interest-bearing liabilities decreased 62 basis points to
0.58%, both as compared to the same period in 2013.

Noninterest income for the three months ended March 31, 2014 was $1.9 million,
a decrease of $56 thousand or 2.9% over the same period of 2013. For the
three months ended March 31, 2014, the Company realized net gains of $380
thousand on the sale of available for sale securities as compared to $467
thousand for the same period in 2013. These gains were primarily the result
of the Company selling a portion of its previously impaired agency preferred
securities (FNMA & FHLMC). The Company sold these securities to remove
classified assets from the balance sheet and increase the Company's sources of
taxable income. Service charges and fees on deposit accounts increased $56
thousand, or 7.3% in the first quarter of 2014, which was primarily
attributable to an increase in service charge income on checking accounts.
Debit/credit card fee income decreased $24 thousand, or 7.2% in the first
quarter of 2014, which was primarily attributable to a decrease in debit card
income.

Noninterest expense for the three months ended March 31, 2014 was $8.2
million, an increase of $222 thousand or 2.8% over noninterest expense of $8.0
million for the three months ended March 31, 2013. Salaries and employee
benefits increased $437 thousand, or 10.5% in the first quarter of 2014
primarily due to annual merit pay increases, lower deferred compensation on
loan originations and was partially offset by lower group term insurance
costs. FDIC insurance expense decreased $255 thousand, or 43.4% in the first
quarter of 2014 and was driven by lower base assessment rates due to the
improvement in the Bank's overall composite rating in connection with the
termination (in July 2013) of the written agreement, dated February 17, 2011
(the "Written Agreement"), among the Company, the Bank, the Federal Reserve
Bank of Richmond (the "Reserve Bank") and the Virginia State Corporation
Commission Bureau of Financial Institutions (the "Bureau"). Expenses related
to collection, repossession and OREO decreased $59 thousand, or 46.8% in the
first quarter of 2014 due to the decrease in the carrying balances of OREO and
classified assets. For the first quarter of 2014, noninterest expense
includes $5 thousand in impairment losses related to valuation adjustments on
OREO compared to $10 thousand for the same period in 2013. In addition,
noninterest expense for the first quarter of 2014 includes gains on the sale
of OREO of $13 thousand compared to losses of $37 thousand for the same period
in 2013.

Balance Sheet and Asset Quality

Total assets decreased $36.2 million or 3.3% between March 31, 2013 and March
31, 2014, but are up $30.4 million from December 31, 2013. Between March 31,
2013 and March 31, 2014, investment securities decreased $3.4 million or 1.2%
to $269.8 million, and are down $593 thousand from December 31, 2013. Loans,
net of unearned income increased approximately $12.1 million or 1.8% from
March 31, 2013 to $683.0 million at March 31, 2014, and are up $25.8 million
from $657.2 million as of December 31, 2013. Total deposits decreased $28.3
million or 3.3% from March 31, 2013 to $826.9 million at March 31, 2014, and
are down approximately $7.5 million from $834.5 million as of December 31,
2013. Total borrowings decreased $42.4 million or 32.3% from March 31, 2013
to $88.6 million at March 31, 2014, and are up approximately $33.4 million
from $55.3 million as of December 31, 2013. Total shareholders' equity
increased approximately $37.0 million or 36.9% from March 31, 2013 to $137.4
million at March 31, 2014, and is up approximately $4.4 million from $132.9
million as of December 31, 2013. Year to date average investment securities
were $278.6 million as of March 31, 2014, a decrease of $9.4 million or 3.3%
compared to the same period of 2013. Year to date average loans were $678.1
million as of March 31, 2014, an increase of $4.0 million or 0.6% compared to
the same period of 2013. Year to date average total deposits were $821.8
million as of March 31, 2014, a decrease of $20.7 million or 2.5% compared to
the same period of 2013. Year to date average borrowings were $86.5 million
as of March 31, 2014, a decrease of $44.6 million or 34.0% compared to the
same period of 2013. Year to date average shareholders' equity was $135.9
million as of March 31, 2014, an increase of approximately $35.7 million or
35.7% compared to the same period of 2013.

The asset quality measures depicted below continue to reflect the Company's
efforts to prudently charge-off loans as losses are identified and maintain an
appropriate allowance for potential future loan losses. 

The following table depicts the net charge-off activity for the three months
ended March 31, 2014 and 2013.

                                 Three months ended
(dollars in thousands)         March 31,
                                 2014           2013
Net charge-offs                 $     111  $   1,422
Net charge-offs to average loans 0.07%          0.86%

The following table depicts the level of the allowance for loan losses for the
periods presented.

(dollars in thousands)                  March 31,   December 31,  March 31,
                                          2014        2013          2013
Allowance for loan losses                 $  14,906  $   14,767  $  19,516
Allowance for loan losses to period end   2.18%       2.25%         2.91%
loans
Allowance for loan losses to nonaccrual   180.42%     134.03%       172.80%
loans
Allowance for loan losses to              180.42%     134.03%       172.80%
nonperforming loans

The following table depicts the level of nonperforming assets for the periods
presented.

(dollars in thousands)             March 31,    December 31,    March 31,
                                     2014         2013            2013
Nonaccrual loans                     $   8,262  $    11,018  $   11,294
Loans past due 90 days and accruing  -            -               -
interest
 Total nonperforming loans          $   8,262  $    11,018  $   11,294
Other real estate owned ("OREO")     557          800             2,988
 Total nonperforming assets         $   8,819  $    11,818  $   14,282
Nonperforming assets to total loans  1.29%        1.80%           2.12%
and OREO

The following tables present the change in the balances of OREO and nonaccrual
loans for the three months ended March 31, 2014.

OREO:                                  Nonaccrual Loans:
(dollars in thousands)                 (dollars in thousands)
Balance at December 31, 2013    $ 800  Balance at December 31, 2013  $ 11,018
Transfers from loans            136    Loans returned to accrual     (3,796)
                                       status
Capitalized costs               -      Net principal curtailments    (715)
Sales proceeds                  (387)  Charge-offs                   (209)
Impairment losses on valuation  (5)    Loan collateral moved to OREO (136)
adjustments
Gain on disposition             13     Loans placed on nonaccrual    2,100
                                       during period
Balance at March 31, 2014       $ 557  Balance at March 31, 2014     $  8,262

In general, the modification or restructuring of a loan constitutes a troubled
debt restructuring ("TDR") when we grant a concession to a borrower
experiencing financial difficulty. The following table depicts the balances
of TDRs for the periods presented.

                                March 31,       December 31,     March 31,
(dollars in thousands)          2014            2013             2013
Performing TDRs                 $            $            $     
                                17,440         16,026          4,900
Nonperforming TDRs*             2,560           4,188            4,895
 Total TDRs                    $            $            $     
                                20,000         20,214          9,795
* Included in nonaccrual
loans.

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 the Act. Examples of forward-looking
statements include, but are not limited to: (i)projections of revenues,
expenses, income or loss, earnings or loss per share, the payment or
nonpayment of dividends, capital structure and other financial items;
(ii)statements of plans, objectives and expectations of the Company or its
management or Board of Directors, including those relating to products or
services, the performance or disposition of portions of the Company's asset
portfolio, future changes to the Bank's branch network, the payment of
dividends, and the ability to realize deferred tax assets; (iii)statements of
future financial performance and economic conditions; (iv) statements
regarding the impact of the memorandum of understanding among the Company, the
Bank, the Reserve Bank and the Bureau, dated September 5, 2013 (the "MOU") or
the termination of the MOU on our financial condition, operations and capital
strategies; (v) statements regarding the adequacy of the allowance for loan
losses; (vi) statements regarding the effect of future sales of investment
securities or foreclosed properties; (vii) statements regarding the Company's
liquidity; (viii) statements of management's expectations regarding future
trends in interest rates, real estate values, and economic conditions
generally and in the Company's markets; (ix)statements regarding future asset
quality, including expected levels of charge-offs; (x) statements regarding
potential changes to laws, regulations or administrative guidance; (xi)
statements regarding business initiatives related to and the use of proceeds
from the private placements (the "Private Placements") and the rights offering
(the "Rights Offering") the Company completed in 2013, including expected
future interest expenses and net interest margin following the prepayment of
long-term FHLB advances; and (xii) statements of assumptions underlying such
statements. 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 statements.

Forward-looking statements involve risks and uncertainties that may cause
actual results to differ materially from those in such statements. Factors
that could cause actual results to differ from those discussed in the
forward-looking statements include, but are not limited to:

  ofactors that adversely affect the business initiatives related to and the
    use of proceeds from the Rights Offering and the Private Placements,
    including, without limitation, changes in market conditions that adversely
    affect the Company's ability to dispose of or work out assets adversely
    classified by us on advantageous terms or at all;
  othe Company's ability and efforts to assess, manage and improve its asset
    quality;
  othe strength of the economy in the Company's target market area, as well
    as general economic, market, political, or business factors;
  ochanges in the quality or composition of the Company's loan or investment
    portfolios, including adverse developments in borrower industries, decline
    in real estate values in its markets, or in the repayment ability of
    individual borrowers or issuers;
  othe effects of the Company's adjustments to the composition of its
    investment portfolio;
  othe impact of government intervention in the banking business;
  oan insufficient allowance for loan losses;
  othe Company's ability to meet the capital requirements of its regulatory
    agencies;
  ochanges in laws, regulations and the policies of federal or state
    regulators and agencies, including rules to implement the Basel III
    capital framework and for calculating risk-weighted assets;
  oadverse reactions in financial markets related to the budget deficit of
    the United States government;
  ochanges in the interest rates affecting the Company's deposits and loans;
  othe loss of any of the Company's key employees;
  ochanges in the Company's competitive position, competitive actions by
    other financial institutions and the competitive nature of the financial
    services industry and the Company's ability to compete effectively against
    other financial institutions in its banking markets;
  othe Company's potential growth, including its entrance or expansion into
    new markets, the opportunities that may be presented to and pursued by it
    and the need for sufficient capital to support that growth;
  ochanges in government monetary policy, interest rates, deposit flow, the
    cost of funds, and demand for loan products and financial services;
  othe Company's ability to maintain internal control over financial
    reporting;
  othe Company's ability to raise capital as needed by its business;
  othe Company's reliance on secondary sources, such as Federal Home Loan
    Bank advances, sales of securities and loans, federal funds lines of
    credit from correspondent banks and out-of-market time deposits, to meet
    its liquidity needs;
  opossible changes to the Company's Board of Directors, including in
    connection with the Private Placements and deferred dividends on the
    Company's Series A Preferred Stock; and
  oother circumstances, many of which are beyond the Company's control.

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.

Selected Financial Information                       Three months ended
(dollars in thousands, except per share data)      March 31,
Statement of Operations                              2014          2013
Interest and dividend income                        $           $  
                                                     10,376       10,577
Interest expense                                     1,115         2,540
 Net interest income                               9,261         8,037
Provision for loan losses                            250           600
 Net interest income after provision for loan      9,011         7,437
losses
Service charges and fees on deposit accounts         822           766
Other operating income                               376           381
Debit/credit card fees                               309           333
Gain on sale of available for sale securities,       380           467
net
Gain on sale of bank premises and equipment          5             1
Noninterest income                                   1,892         1,948
Salaries and employee benefits                       4,586         4,149
Occupancy and equipment expenses                     1,319         1,256
FDIC expense                                         332           587
Collection, repossession and other real estate owned 67            126
(Gain) loss on sale of other real estate owned       (13)          37
Impairment losses on other real estate owned         5             10
Other operating expenses                             1,882         1,791
Noninterest expenses                                 8,178         7,956
Income before income taxes                           2,725         1,429
Income tax expense                                   729           349
 Net income                                        $          $   
                                                     1,996        1,080
 Less: Effective dividend on preferred stock       518           376
 Net income available to common shareholders       $          $     
                                                     1,478        704
Income per common share: basic                       $         $    
                                                     0.12         0.12
          $         $    
diluted                                              0.09         0.12
Selected Ratios
Return on average assets                             0.57%         0.26%
Return on average common shareholders' equity        6.64%         3.75%
Net interest margin (tax equivalent basis)           3.93%         3.23%
Period End Balances
Loans, net of unearned income                        $  682,952  $ 
                                                                   670,804
Total assets                                         1,057,471     1,093,682
Total deposits                                       826,934       855,230
Total borrowings                                     88,610        130,979
Total shareholders' equity                           137,374       100,327
Book value per common share                          7.79          12.66
Average Balances
Loans, net of unearned income                        $  678,110  $ 
                                                                   674,082
Total earning assets                                 964,339       1,012,571
Total assets                                         1,049,048     1,080,968
Total deposits                                       821,825       842,546
Total borrowings                                     86,513        131,102
Total shareholders' equity                           135,856       100,127
Asset Quality at Period End
Allowance for loan losses                            $           $  
                                                     14,906       19,516
Nonperforming assets                                 8,819         14,282
Net charge-offs                                     111           1,422
Net charge-offs to average loans                     0.07%         0.86%
Allowance for loan losses to period end loans        2.18%         2.91%
Allowance for loan losses to nonaccrual loans        180.42%       172.80%
Nonperforming assets to total assets                 0.83%         1.31%
Nonperforming assets to total loans and other real   1.29%         2.12%
estate owned
Other Information
Number of shares outstanding - period end            11,862,367    6,069,551
Average shares outstanding - basic                   11,862,367    6,069,551
Average shares outstanding - diluted                 17,102,559    6,069,551

Average Balance Sheet and Net Interest Margin
Analysis
(dollars in
thousands)
                                  Three Months Ended March 31,
                                  2014                          2013
                     Average      Income/    Yield/  Average    Income/ Yield/
                     Balance      Expense    Rate    Balance    Expense Rate
                                             (1)                        (1)
Assets:
Securities
 Taxable            $ 241,088   $        2.54%   $ 265,861 $     2.17%
                                  1,507                        1,422
 Restricted         7,237        102        5.72%   9,228      86      3.78%
securities
 Tax exempt (2)     30,269       306        4.10%   12,893     127     3.99%
 Total securities  278,594      1,915      2.79%   287,982    1,635   2.30%
Interest bearing
deposits in other    7,492        4          0.22%   50,153     25      0.20%
banks
Federal funds sold   143          -          0.00%   354        -       0.00%
Loans, net of        678,110      8,550      5.11%   674,082    8,956   5.39%
unearned income (3)
 Total earning   964,339      10,469     4.40%   1,012,571  10,616  4.25%
assets
Less allowance for   (14,784)                        (20,363)
loan losses
Total non-earning    99,493                          88,760
assets
Total assets         $ 1,049,048                     $
                                                     1,080,968
Liabilities & Shareholders' Equity:
Interest-bearing deposits
 Checking           $ 257,179   $      0.36%   $ 244,545 $    0.39%
                                  228                            236
 Savings            90,185       30         0.13%   88,266     39      0.18%
 Money market       119,087      125        0.43%   132,346    150     0.46%
savings
 Large dollar
certificates of      100,768      301        1.21%   126,782    430     1.38%
deposit (4)
 Other certificates 125,092      303        0.98%   133,021    419     1.28%
of deposit
 Total
interest-bearing     692,311      987        0.58%   724,960    1,274   0.71%
deposits
Federal funds purchased and repurchase
 agreements      3,218        5          0.63%   3,292      5       0.62%
Short-term           72,985       35         0.19%   -          -       0.00%
borrowings
Long-term borrowings -            -          0.00%   117,500    1,174   4.05%
Trust preferred debt 10,310       88         3.46%   10,310     87      3.42%
 Total
interest-bearing     778,824      1,115      0.58%   856,062    2,540   1.20%
liabilities
Noninterest-bearing liabilities
 Demand deposits    129,514                         117,586
 Other liabilities  4,854                           7,193
 Total           913,192                         980,841
liabilities
Shareholders' equity 135,856                         100,127
Total liabilities                                   $
and shareholders'    $ 1,049,048                     1,080,968
equity
Net interest income (2)           $                           $  
                                  9,354                        8,076
Interest rate spread (2)(5)                  3.82%                      3.05%
Interest expense as a percent of
 average earning assets                    0.47%                      1.02%
Net interest margin (2)(6)                   3.93%                      3.23%
Notes:
(1) Yields are annualized and based on average daily balances.
(2) Income and yields are reported on a tax equivalent basis assuming a
federal tax rate of 34%, with a
 $93 adjustment for 2014 and a $39 adjustment in 2013.
(3) Nonaccrual loans have been included in the computations of average loan
balances.
(4) Large dollar certificates of deposit are certificates issued in amounts of
$100 or greater.
(5) Interest rate spread is the average yield on earning assets, calculated on
a fully taxable basis, less the average
 rate incurred on interest-bearing liabilities.
(6) Net interest margin is the net interest income, calculated on a fully
taxable basis, expressed as a percentage
 of average earning assets.

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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