TAPPAHANNOCK, Va.–(PRNewswire)–Eastern Virginia Bankshares, Inc. (NASDAQ: EVBS) (the “Company”), the one bank holding company of EVB, Tappahannock, Virginia, today announced the redemption (the “Partial Redemption”) of 10,000 shares, or 41.7%, of its 24,000 shares of 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 (“U.S. Treasury”) under the Troubled Asset Relief Program Capital Purchase Program. In October 2013, the U.S. Treasury sold all 24,000 shares of Series A Preferred Stock previously held by it to private investors. Following completion of the Partial Redemption, 14,000 shares of Series A Preferred Stock remain outstanding.
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 Partial Redemption was approximately $10.2 million. The Partial Redemption will result in estimated annual savings of $900 thousand, or $0.05 per fully diluted common share, due to the elimination of payment of dividends on the redeemed shares of Series A Preferred Stock.
Following completion of the Partial Redemption, the capital ratios of the Company and EVB continue to exceed regulatory capital standards to be categorized as well-capitalized.