Eastern Virginia Bankshares Announces Increased Loan Loss Reserves, Declares Dividend
Eastern Virginia Bankshares (NASDAQ:EVBS) today reported its results of operations for the three and six months ended June 30, 2010 and announced a dividend declaration.
After a process of evaluating our credit portfolio in this difficult economic environment, and in light of recent evidence that suggests that economic growth may remain weak for an extended period, EVBS announces that it has significantly increased its provision for loan losses. While this action has an immediate recognition of a loss for the quarter and the results of operations year to date, it is necessary as we aggressively identify and resolve our problem loans.
For the three months ended June 30, 2010, EVBS reported a net operating loss of ($6.0) million, an increase of $4.2 million over the net operating loss of ($1.8) million reported for the same period of 2009. The net loss to common shareholders increased to ($6.3) million, or ($1.06) per common share, assuming dilution, compared to a net loss of ($2.1) million or ($0.36) per common share in 2009. For the first six months of 2010, the net operating loss was ($4.6) million, an increase of $3.6 million over the net operating loss of ($1.0) million reported for the same period of 2009. The net loss to common shareholders increased to ($5.4) million, or ($0.90) per common share, assuming dilution, compared to a net loss of ($1.8) million in 2009 or ($0.30) per common share. Continued economic weaknesses necessitated a significant increase in our provision for loan losses and was the primary driver of our financial results for the quarter. For the three and six months ended June 30, 2010 the provision for loan losses was $12.6 million and $14.5 million, respectively, as compared to $750 thousand and $1.7 million for the same periods of 2009. The difference between net operating loss and net loss to common shareholders is the deduction for the effective dividend to the U.S. Treasury on preferred stock.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV