TAPPAHANNOCK, Va.–(PRNewswire)–Eastern Virginia Bankshares, Inc. (NASDAQ: EVBS) (the “Company”), the one bank holding company of EVB (the “Bank”), announced today the redemption (the “Final Redemption”) of the remaining 9,000 shares of its outstanding Fixed Rate Cumulative Perpetual Preferred Stock, Series A (“Series A Preferred Stock”) that were originally issued to the United States Department of the Treasury (“Treasury”) under the Troubled Asset Relief Program Capital Purchase Program (“TARP”). In October 2013, Treasury sold all 24,000 shares of Series A Preferred Stock previously held by it to private investors. The Company previously redeemed 15,000 shares of the Series A Preferred Stock in two separate transactions, 10,000 shares in October 2014 and 5,000 shares in January 2015. Following completion of the Final Redemption, no shares of Series A Preferred Stock remain outstanding.
Joe A. Shearin, President and Chief Executive Officer of the Company and Bank, commented, “We are excited to announce the successful repayment of the remaining $9 million of our Series A Preferred Stock. This announcement, along with our repurchase of the TARP warrants from Treasury last month, eliminates the Company’s TARP financing and represents great progress in implementing our strategic plan. This repayment fully eliminates a high cost source of capital and will improve our future financial results for our common shareholders. We are very pleased with the progress we have made over the past few years and look forward to continuing to build and strengthen our banking franchise.”
The redemption price for the shares of Series A Preferred Stock was the stated liquidation preference amount of $1,000 per share, plus accrued and unpaid dividends. The total aggregate redemption price of the shares of Series A Preferred Stock redeemed in the Final Redemption was approximately $9.1 million. The Final Redemption will result in estimated annual savings of $810 thousand, or $0.04 per fully diluted common share, due to the elimination of payment of dividends on the redeemed shares of Series A Preferred Stock.