Eastern Virginia Bancshares redeems $10 million series A preferreds

By Tali Rackner

Norfolk, Va., Oct. 20 – Eastern Virginia Bankshares, Inc. announced the redemption of 10,000 shares, or $10 million, of its series A fixed-rate cumulative perpetual preferred stock issued under the Troubled Asset Relief Program, according to an 8-K filing with the Securities and Exchange Commission.

Following the redemption, 14,000 shares, or $14 million, remain outstanding.

The redemption price was the stated liquidation preference amount of $1,000 per share plus accrued dividends. The total redemption price was about $10.2 million.

The partial redemption will result in estimated annual savings of $900,000, 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.

The bank holding company is based in Tappahannock, Va.

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