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Eastern Virginia Bankshares, Inc. Announces Plan to Repay Up to $15 Million in TARP Funding

June 7, 2014

By a News Reporter-Staff News Editor at Investment Weekly News -- Eastern Virginia Bankshares, Inc. (NASDAQ: EVBS) (the "Company"), the holding company for EVB (the "Bank"), announced that it intends to repay up to $15 million of its Series A Preferred Stock issued under the Troubled Asset Relief Program Capital Purchase Program ("TARP"), making substantial progress toward completing one of the Company's previously disclosed strategic initiatives. In connection with this repayment, the Company will also pay $4.1 million of previously accumulated but unpaid dividends to holders of the Series A Preferred Stock, and pay $1.1 million of previously accrued but deferred interest on its trust preferred securities.

Joe A. Shearin, President and Chief Executive Officer commented, "We are extremely pleased to be able to announce this plan to repay a substantial portion of our $24 million of Series A Preferred Stock. This repayment will eliminate a high cost source of capital and improve our financial results for our common shareholders. This announcement represents great progress in implementing the Company's strategic plan."

Shearin further commented, "We continue to evaluate and implement strategies to strengthen our financial condition and increase profitability going forward, including the eventual repayment of our remaining Series A Preferred Stock, while identifying strategic opportunities to grow our balance sheet. We are very pleased with the progress we have made over the past 18 months and look forward to continuing to build and strengthen our banking franchise."

The Company currently anticipates completing the partial TARP repayment late during the second quarter of 2014.

Keywords for this news article include: Banking and Finance, Investment and Finance, Eastern Virginia Bankshares Inc..

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Source: Investment Weekly News

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