UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly period ended March 31, 1998
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___ to ___
Commission File No. 333-37225
EASTERN VIRGINIA BANKSHARES, INC.
(Exact name of registrant as specified in its charter)
VIRGINIA 54-1866052
(State of Incorporation) (I.R.S. Employer Identification No.)
307 Church Lane, Tappahannock, Virginia 22560
(Address of principal executive offices)
Registrant's telephone number (804) 443-4333
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes x No
--- ---
The number of shares of the registrant's Common Stock outstanding as of April
21, 1998 was 5,188,576.
EASTERN VIRGINIA BANKSHARES, INC.
FORM 10-Q
For the Quarter Ended March 31, 1998
<TABLE>
<CAPTION>
Part I
<S> <C>
Item 1. Financial Statements 2
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations 8
Item 3. Quantitative and Qualitative Disclosures About Market Risk 11
Part II
Item 1. Legal Proceedings 11
Item 2. Changes in Securities 11
Item 3. Defaults Upon Senior Securities 11
Item 4. Submission of Matters to a Vote of Security Holders 11
Item 5. Other Information 11
Item 6. Exhibits and Reports on Form 8-K 11
</TABLE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Eastern Virginia Bankshares, Inc. and Subsidiaries
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)
<TABLE>
<CAPTION>
March 31 December 31
1998 1997
---- ----
<S> <C>
Assets:
Cash and due from banks $ 9,609 $ 9,319
Interest-bearing deposits in other banks 100 100
Federal funds sold 12,404 2,642
Securities available for sale at fair value 35,169 38,912
Securities held to maturity at amortized cost
fair value of $39,332 and $38,389 37,446 38,362
Loans, net 227,380 224,113
Deferred income taxes 1,248 1,243
Bank premises and equipment 4,374 4,200
Accrued interest receivable 2,411 2,479
Other real estate 43 86
Federal Home Loan Bank and Federal
Reserve stock, at cost 956 824
Other assets 654 1,150
-------- --------
Total assets $331,794 $323,430
-------- --------
Liabilities and Shareholders' Equity
Liabilities
Noninterest-bearing demand accounts $ 30,298 $ 29,095
Savings accounts and interest bearing deposits 122,330 118,111
Time deposits 136,287 133,676
-------- --------
Total deposits 288,915 280,882
Accrued interest payable 794 795
Other liabilities 1,828 2,489
-------- --------
Total liabilities 291,538 284,165
Shareholders' Equity
Common stock of $2 par value per share, authorized
50,000,000 shares, issued and outstanding
5,188,576 and 5,188,576 respectively 10,377 10,377
Surplus 221 221
Retained earnings 29,537 28,535
Accumulated other comprehensive income 121 132
-------- --------
Total shareholders' equity 40,256 39,265
Total liabilities and shareholders' equity $331,794 $323,430
-------- --------
</TABLE>
See Notes to Consolidated Financial Statements
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Eastern Virginia Bankshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands except share amounts)
<TABLE>
<CAPTION>
Three Months Ended
March 31
1998 1997
---- ----
<S> <C>
Interest Income:
Loans $5,256 $4,705
Interest on investment securities:
Taxable 73 17
Tax exempt 447 506
Interest on securities available for sale:
Taxable 569 665
Tax exempt -- --
------ ------
Dividends 13 2
Interest on federal funds sold 103 84
Interest on deposits in other banks 2 --
------ ------
Total interest income 6,463 5,979
Interest Expense
Deposits 2,870 2,683
Short-term borrowings -- 5
------ ------
Total interest expense 2,870 2,688
------ ------
Net interest income 3,593 3,291
Provision for loan losses 123 84
------ ------
Net interest income after provision for loan
losses $3,470 $3,207
Other income
Service charges on deposit accounts 332 269
Gain (loss) on sale of available for sale securities 8 --
Other operating income 188 153
------ ------
528 422
------ ------
Other Expenses
Salaries and benefits 918 792
Net occupancy expense of premises 214 198
Other operating expenses 791 608
------ ------
1,923 1,598
----- ------
Income before income taxes 2,075 2,031
Income Tax Expense 502 502
------ ------
Net income $1,573 $1,529
------ ------
Earnings Per Share, basic and assuming dilution $ 0.30 $ 0.29
Dividends per share $ 0.11 $ 0.00
</TABLE>
See Notes to Financial Statements
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Eastern Virginia Bankshares, Inc. and Subsidiaries
Consolidated Statement of Cash Flows (Unaudited)
(Dollars in thousands)
<TABLE>
<CAPTION>
Three Months Ended
March 31 March 31
1998 1997
---- ----
<S> <C>
Cash Flows from Operating Activities
Net income $ 1,573 $ 1,529
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 135 135
Provision for loan losses 123 84
Losses (gains) realized on available for sale securities (8) --
(Increase) decrease in other assets 275 (98)
Increase (decrease) in other liabilities 291 (255)
------- ----------
Net cash provided by operating activities 2,389 1,395
Cash Flows from Investing Activities
Proceeds from maturities, calls, paydowns and sales
of available for sale securities 4,858 5,050
Purchase of securities available for sale (1,109) (2,600)
Proceeds from maturities of investment securities 1,360 1,165
Purchase of investment securities (453) (635)
(Purchase) sale of FHLB and Federal Reserve Bank stock (47) (91)
Net (increase) decrease in loans (3,267) (6,257)
Purchases of bank premises and equipment (309) (180)
Proceeds from sale of OREO -- --
-------- --------
Net cash (used in) investing activities 1,033 (3,548)
Cash Flows from Financing Activities
Net increase in noninterest bearing and interest bearing
demand deposits and savings accounts 4,747 3,189
Net increase in certificates of deposit 2,610 254
Proceeds from sale of common stock -- --
Acquisition of common stock -- (10)
Dividends declared (571) --
Decrease in other short-term borrowings (56) --
-------- --------
Net cash provided by financing activities 6,730 3,433
-------- --------
Increase (decrease in cash and cash equivalents 10,152 1,280
Cash and cash equivalents
Beginning of period 11,961 14,621
-------- --------
End of period $ 22,113 $ 15,901
-------- --------
Supplemental Disclosures of Cash Flow Information
Cash paid for:
Interest on deposits and other borrowings $ 2,870 $ 2,688
Income taxes $ 502 $ 502
</TABLE>
See Accompanying Notes to Consolidated Financial Statements
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Eastern Virginia Bankshares, Inc. and Subsidiaries
Consolidated Statement of Changes in Shareholders' Equity (Unaudited)
For the Three Months Ended March 31, 1998 and 1997
(Dollars in thousands)
<TABLE>
<CAPTION>
Accumulated
Other
Comprehensive Retained Comprehensive Common Capital
Total Income Earnings Income Stock Surplus
----- ------ -------- ------ ----- -------
<S> <C>
Balances - January 1, 1997 $ 35,456 $ 24,977 $ (101) $ 10,374 $ 206
Comprehensive income:
Net income 1,529 1,529 1,529
Other comprehensive income, net of tax
Unrealized gain/(loss) on securities
available for sale:
Unrealized holding gain/(loss) arising
during the period (28) (28)
Less: reclassification adjustment
-- --
--------- -------
Other comprehensive income, net of tax (28) (28) (28)
--------- -------
Total comprehensive income 1,501 1,501
Shares purchased and retired
(10) (2) (8)
Dividends declared -- -- --
--------- ---------
Balances-March 31, 1997 $ 36,947 $ 26,506 $ (129) $ 10,372 $ 198
---------- --------- ------- -------- ------
Balances - January 1, 1998 $ 39,265 $ 28,535 $132 $ 10,377 $ 221
Comprehensive income:
Net income
1,573 1,573 1,573
Other comprehensive income, net of
tax Unrealized gain/(loss) on securities
available for sale
Unrealized holding gain/(loss) arising
during the period (19) (19)
Less: reclassification adjustment
(8) (8)
---- -----
Other comprehensive income, net of tax
(11) (11)
---- -----
Total comprehensive income $ 1,562
Dividends declared -----
(571) (571) -- -- --
------- --------- ------- --------- ------
Balances-March 31, 1998 $ 40,256 $ 29,537 $ 132 $ 10,377 $ 221
------- --------- ------- --------- -------
</TABLE>
<PAGE>
PART 1 - FINANCIAL INFORMATION
ITEM 1. Financial Statements
EASTERN VIRGINIA BANKSHARES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1998 (UNAUDITED) AND DECEMBER 31, 1997
1. The information contained in the financial statements is unaudited and does
not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. However,
in the opinion of management, the accompanying unaudited consolidated
financial statements contain all adjustments (consisting of normal
recurring accruals) considered necessary to present fairly the financial
position as of March 31, 1998, and December 31, 1997, and the results of
operations and changes in cash flows for the three months ended March 31,
1998 and 1997. The statements should be read in conjunction with the Notes
to Consolidated Financial Statements included in Eastern Virginia
Bankshares' Annual Report for the year ended December 31, 1997.
2. Eastern Virginia Bankshares (the "Company or EVB") was organized and
chartered under the laws of the Commonwealth of Virginia on September 5,
1997 and commenced operations effective December 29,1997 when Southside
Bank (SSB) and Bank of Northumberland, Inc. (BNI) became wholly owned
subsidiaries of EVB. The transaction was accounted for using the pooling
-of-interest method of accounting. Accordingly, the financial statements of
EVB have been restated for all periods presented to reflect the
consolidation of SSB and BNI into EVB.
3. The results of operations for the three month periods ended March 31, 1998
and 1997, are not necessarily indicative of the results to be expected for
the full year.
4. Earnings per share have been computed by dividing net income by the
weighted average number of shares outstanding for the period. Weighted
average shares used for the computation were 5,188576 and 5,186,500 for the
three months ended March 31, 1998 and 1997.
5. EVB's amortized cost and estimated fair values of securities at March 31,
1998 are as follows: (in thousands)
<TABLE>
<CAPTION>
March 31, 1998
--------------------------------------------------
Gross Gross Estimated
Amortized Unrealized Unrealized Fair
Cost Gains (Losses) Value
---------- ----------- ----------- ----------
<S> <C>
Available for Sale:
U.S. Government obligations $ 12,146 $ 75 $ (4) $ 12,217
Obligations of U.S. Government agencies 21,170 167 (75) 21,262
Obligations of state/political subdivisions 1,405 20 - 1,425
Other securities
264 - - 264
------ ------ --------- --------
34,985 262 (79) 35,168
Held to Maturity:
Obligations of state/political subdivisions 36,947 1,009 (77) 37,879
Corporate bonds 499 11 - 510
----------- ------------- ---------- ----------
37,446 1,020 (77) 38,389
----------- ------------- ---------- ----------
Total $ 72,431 $ 1,282 $ (156) $ 73,557
----------- ------------ ---------- ---------
</TABLE>
Note 6. EVB's loan portfolio is composed of the following:
(in thousands)
March 31 December 31
1998 1997
---- ----
Real estate - construction $ 7,452 $ 6,430
Real estate - mortgage 118,979 118,639
Commercial real estate 28,279 27,324
Commercial, industrial and
agricultural loans 29,795 32,901
Installment loans to individuals 49,364 45,723
All other loans 536 294
----------- -----------
Total loans 234,405 231,311
Less unearned income (3,124) (3,330)
Less allowance for loan losses (3,901) (3,868)
------------ -----------
Total net loans $ 227,380 $ 224,113
----------- ----------
EVB has $2.57 million in non-performing loans at March 31, 1998
Note 7. Allowance for Loan Losses
March 31 December 31
1998 1997
---- ----
Balance January 1 $ 3,869 $ 3,643
Provision charged against income 123 412
Recoveries of loans charged off 29 459
Loans charged off (121) (645)
---------- ----------
Balance at end of period $ 3,900 $ 3,869
PART 1 - FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Management's discussion and analysis of financial information is presented to
aid the reader in understanding and evaluating the financial condition and
results of operations of Eastern Virginia Bankshares, Inc. ("EVB" or "the
Company"). This discussion provides information about the major components of
the results of operations, financial condition, liquidity and capital resources
of the Company. This discussion should be read in conjunction with the
Consolidated Financial Statements and Notes to Consolidated Financial Statements
presented elsewhere in this report. Operating results include Southside Bank and
Bank of Northumberland, Inc. combined for all periods presented.
OVERVIEW AND FINANCIAL CONDITION
On December 29, 1997, EVB brought together into one holding company two
independent community banks, Southside Bank and Bank of Northumberland, Inc.
Total assets on March 31, 1998 were $331.8 million, up $ 19.0 million or 6.1%
from $ 312.8 million at March 31, 1997. Total assets at December 31, 1997 were
$323.4 million. For the first three months of 1998, total assets averaged $
$327.0 million, 6.0% above the first three months of 1997 average of $308.5
million.
Total loans, net of unearned income, amounted to $231.3 million at March 31,
1998, an increase of $ 18.5 million or 8.9% from $ 208.9 million at March 31,
1997. At December 31, 1997, total loans net of unearned income and allowance for
loan losses was $224.1 million. Net loans as a percent of total assets were
68.5% at March 31, 1998, as compared to 66.8% at March 31, 1997, and 68.5% at
December 31, 1997. Net loan volume for the first three months of 1998 was $ 3.3
million as compared to $ 6.2 million for the first three months of 1997. Slower
loan growth in 1998 versus 1997 is related to a consumer trend toward secondary
market, long-term, fixed-rate mortgages and away from the Company's variable
rate mortgages.
On March 31, 1998, the securities portfolio totaled $ 72.6 million, which was
$6.5 million or 8.2% lower than the year before and $ 4.7 million or 6.1% lower
than at December 31, 1997. In the first three months of 1998, as funds became
available they were utilized for lending activities in lieu of investing in
securities as a result of increased lending demand over the past year. Funds
that are invested in the securities portfolio are part of the effort to balance
the interest rate risk . Federal funds sold were $12.4 million on March 31,
1998, $ 9.8 million or 270% higher than the $2.6 million outstanding at December
31, 1997. This significant increase in Federal Funds sold is primarily the
result of management's intent to increase liquidity above December 31, 1997
levels and, to a lesser degree, a result of soft loan demand.
Financial Accounting Standards Board Pronouncement # 115 requires the Company to
show the effect of market changes in the value of securities available for sale
(AFS). The market value of securities available for sale at March 31, 1998, was
$34.2 million as compared to $38.9 million at year end 1997. The effect of the
market value of AFS securities less the book value of AFS securities, net of
income taxes, is reflected as a line titled Accumulated other comprehensive
income in Stockholders' Equity which was $ 121 thousand at March 31, 1998, a
decline from 1997 year end of $ 11 thousand and an increase from March 31, 1997
of ($ 250 thousand). Stable interest rates during the first quarter of 1998 have
resulted in stable securities values with only a very minimal decrease in value
as compared to 1997 year end.. This $11 thousand decrease in the unrealized gain
on AFS securities is also reflected under the Other Comprehensive Income
category on the Consolidated Statement of Changes in Shareholders' Equity
statement.
Total deposits increased $ 15.6 million or 5.7% to $288.9 million at March 31,
1998, compared to the same date a year earlier. At December 31, 1997, total
deposits were $ 280.9 million. EVB offers attractive, yet competitive rates,
that continue to contribute to increased deposits.
RESULTS OF OPERATIONS
Net income for the first three months of 1998 amounted to $ 1.57 million,
increasing $ 44 thousand or 2.9% from $1.53 million for the first three months
of 1997. Net income was negatively impacted by merger expenses of $93 thousand
and differences in the timing of expense recognition compared to 1997 by $31
thousand. The yield on earning assets was 8.58% for the first three months of
1998, as compared to 8.42% for first quarter 1997, and the cost of interest
bearing liabilities was 4.51% for the first quarter 1998, as compared to 4.39%
for the first quarter 1997.
Return on average assets was 1.93% for the first three months of 1998, compared
with 1.99% for the same period in 1997, and 1.68% for the year 1997. EVB's
return on average equity was 15.82% for the first three months of 1998, compared
to 16.87% for the same period in 1997. Return on average equity was 13.97% for
the year 1997.
Net Interest Income
Net interest income totaled $ 3.47 million for the first three months of 1998, a
$ 263 thousand increase over the Company's performance for the first three
months of 1997. The net interest margin for the first three months of 1998 was
4.89%, up 11 basis points from 4.78% for the same period in 1997. The
improvement in net interest margin is attributed to significant reductions in
the volume of non accrual loans.
Noninterest Income
Total noninterest income increased $ 106 thousand or 25.1% from $ 422 thousand
for the first three months of 1997, to $528 thousand for the first quarter of
1998. Gains on securities sales for the first quarter of 1998 were $8 thousand
while there were no gains or losses recognized in the first three months of
1997. Service charges on deposit accounts and other income increased $98
thousand for the first three months of 1998.
Noninterest Expense
Total noninterest expense increased $325 thousand or 20.3% from $1.60 million
for the first three months of 1997 to $1.92 million for the first three months
of 1998. Salary expense increased $126 thousand or 15.9% from $792 thousand for
the first quarter of 1997 to $918 thousand for the first quarter of 1998 as the
result of increases in salaries and benefits and increased staffing for a new
branch opened in Deltaville by Southside Bank in the fourth quarter of 1997.
Merger expenses of $93 thousand were incurred in the first quarter of 1998 which
are expected to be nonrecurring. Advertising/ Marketing / Donations /Public
Relations expense increased $53 thousand in the first three months of 1998 to
$87 thousand from $34 thousand in the first quarter of 1997. The increase over
1997 was related to additional expenses associated with the planned opening of a
new branch in Gloucester County, together with the early funding of budgeted
expenses. The cost of net occupancy expense increased $16 thousand or 8.1% from
$198 thousand in the first quarter of 1997 to $214 thousand for the first
quarter of 1998, again primarily impacted by the opening of the new Deltaville
office, by depreciation expense related to investments in technology and by
remodeling expenses at one Southside Bank branch office. All other noninterest
expenses increased $37 thousand or 6.4% to $611 thousand for the first three
months of 1998 from $574 thousand for the same period in 1997, primarily related
to timing differences in expense accruals.
ASSET QUALITY
Asset quality continues to be good based on management review. Loan quality is
the result of management employing conservative loan underwriting standards
while meeting the needs of customers. Total nonperforming assets, which consist
of nonaccrual loans and foreclosed properties were $2.6 million at March 31,
1998, and $ 3.1 million at year end 1997, reflecting a 16% decrease from 1997
year end to 1998 first quarter end and a 43% decrease from March 31, 1997.
Nonperforming assets are composed largely of commercial real estate mortgage
loans secured by real estate in the Company's market area. Based on estimated
fair values of the related real estate, management considers these amounts
recoverable, with any individual deficiency well covered by the allowance for
loan losses.
Nonperforming Assets
<TABLE>
<CAPTION>
March 31 December 31 March 31
1998 1997 1997
---- ---- ----
<S> <C>
Nonaccrual loans $ 2,572 $ 3,022 $ 4,362
Restructured loans - - -
Other real estate owned $ 43 $ 86 $ 196
------- --------- --------
Total nonperforming assets 2,615 3,108 4,558
------- ---------- --------
Loans past due 90 days and
accruing interest $ 731 $ 927 $ 597
Nonperforming assets to total loans
and other real estate 1.13% 1.36% 2.11%
Allowance for loan losses to
nonaccrual loans 151.67% 127.99% 85.30%
Allowance for loan losses to
period end loans 1.69% 1.70% 1.75%
</TABLE>
Total loan charge-offs, less recoveries, amounted to $ 92 thousand for the first
three months of 1998, representing an annualized ratio of net charge-offs to
total average loans, net of unearned income, of 0.16%. This compares to 1997
full year charge-offs of $187 thousand or 0.09% of average loans.
Nonperforming loans at March 31, 1998 were $ 2.57 million, or 1.11% of total
loans, compared to $3.00 million or 1.31% at 1997 year end Also included in
nonperforming loans are loans considered impaired on which management is
concerned about the ability of the customer to repay the loan and related
interest at the original contractual terms. At March 31, 1998, impaired loans
totaled $1.24 million upon which an allowance is included in the total loan
portfolio allowance for loan losses. Interest income recognized on impaired
loans as of March 31, 1998, was $9.9 thousand. The average balance of impaired
loans for the first three months of 1998 was $1.564 million Loans past due 90
days or more and still accruing interest because they were well secured and in
the process of collection were $731 thousand at March 31, 1998, and $927
thousand at December 31, 1997.
The allowance for loan losses has increased to $ 3.90 million at March 31, 1998,
as compared to $3.87 million at December 31, 1997. The allowance increased $ 33
thousand in the first three months of 1998 as compared to $ 79 thousand for the
first three months of 1997. The increase in the allowance for loan losses during
both periods was the result of increased lending activity in the loan portfolio.
The ratio of allowance for loan losses to total loans was 1.69% at March 31,
1998, and 1.70% at year end 1997.
EVB closely monitors those loans that are deemed to be potential problem loans.
Loans are viewed as potential problem loans according to the ability of such
borrowers to comply with current repayment terms. These loans are subject to
constant management attention, and their status is reviewed on a regular basis.
The potential problem loans identified at March 31, 1998 are generally secured
by residential and commercial real estate with appraised values that exceed the
principal balance. At March 31, 1998, potential problem loans were approximately
1.35 million including 5 lending relationships with principal balances in excess
of $100,000 which had an aggregate principal balance outstanding of $1.08
million.
LIQUIDITY
Liquidity represents the Company's ability to meet present and future deposit
withdrawals, to fund loans, to maintain reserve requirements and to operate the
organization. To meet its liquidity needs, EVB maintains cash reserves,
primarily as federal funds sold and has an adequate flow of funds from maturing
loans, securities and short-term investments. In addition, EVB's subsidiary
banks maintain borrowing arrangements with major regional banks and with the
Federal Home Loan Bank. Management considers its sources of liquidity to be
ample to meet its estimated liquidity needs.
CAPITAL RESOURCES
EVB's strong capital position provides the resources and flexibility to support
asset growth, absorb potential losses and to expand the Company's franchise when
appropriate. The Company's risk-based capital position at March 31, 1998 was
$40.125 million, or 19.29% of risk-weighted assets, for Tier 1 capital and
$42.735 million, or 20.67% for total risk based capital.
Tier 1 capital consists primarily of common shareholders' equity, while total
risk based capital adds the allowance for loan losses to Tier 1. Risk weighted
assets are determined by assigning various levels of risk to different
categories of assets and off-balance sheet activities. Under current risk based
capital standards, all banks are required to have Tier 1 Capital of at least 4%
and total capital of 8%.
PART I - FINANCIAL INFORMATION
Item 3. Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in market risk since 1997 year end.
FORM 10-Q PART II - OTHER INFORMATION
Item 1. Legal Proceedings
There are no material legal proceedings to which the registrant or any of its
subsidiaries, directors or officers is a party or by which they, or any of them,
are threatened. The only litigation in which EVB and its subsidiaries are
involved are collection suits involving delinquent loan accounts in the normal
course of business.
Item 2. Changes in Securities (not applicable)
Item 3. Defaults Upon Senior Securities (not applicable)
Item 4. Submission of Matters to a Vote of Security Holders (not applicable)
Item 5. Other Information (not applicable)
Item 6. Exhibits and Reports on Form 8-K
<TABLE>
<CAPTION>
Exhibit No. Exhibit Name
<S> <C>
a. 2 Plan of acquisition, reorganization, arrangement, liquidation, succession (not applicable)
4 Instruments defining the rights of security holders, including indentures (not applicable)
10 Material Contracts - Incorporated herein by reference to
Registrant's Form 10-K Annual Report for the year ended
December 31, 1997 under Exhibit 10 and under the caption
"Employment Contracts" on page 4 of the Company's Proxy
Statement for the 1998 annual meeting of shareholders.
11 Statement re: Computation of Per Share Earnings - Included under Part I, Item I, Note 4
of this of this Form 10-Q.
15 Letter re: Unaudited Interim Financial Information - (not applicable)
18 Letter re: Changes in Accounting Principles - (not applicable)
19 Reports Furnished to Shareholders - (not applicable)
22 Published Report regarding matters submitted to vote of security holders (not applicable)
23 Consent of Experts and Counsel - (not applicable)
24 Power of Attorney (not applicable)
27 Financial Data Schedule - Included herein as Exhibit 27 on page 13
</TABLE>
(b) No reports on Form 8-K were filed during the first quarter of 1998.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Eastern Virginia Bankshares, Inc.
/s/ Thomas M. Boyd, Jr. President and Chief Executive Officer
/s/ Thomas E. Stephenson Vice President, Chief Financial Officer
Date: April 30, 1998
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
CONSOLIDATED BALANCE SHEET AND CONSOLIDATED INCOME STATEMENT AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1998
<CASH> 9,609
<INT-BEARING-DEPOSITS> 100
<FED-FUNDS-SOLD> 12,404
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 35,169
<INVESTMENTS-CARRYING> 37,446
<INVESTMENTS-MARKET> 38,389
<LOANS> 231,281
<ALLOWANCE> 3,900
<TOTAL-ASSETS> 331,794
<DEPOSITS> 288,915
<SHORT-TERM> 0
<LIABILITIES-OTHER> 2,623
<LONG-TERM> 0
0
0
<COMMON> 10,377
<OTHER-SE> 29,879
<TOTAL-LIABILITIES-AND-EQUITY> 331,794
<INTEREST-LOAN> 5,256
<INTEREST-INVEST> 1,102
<INTEREST-OTHER> 105
<INTEREST-TOTAL> 6,463
<INTEREST-DEPOSIT> 2,870
<INTEREST-EXPENSE> 2,870
<INTEREST-INCOME-NET> 3,593
<LOAN-LOSSES> 123
<SECURITIES-GAINS> 8
<EXPENSE-OTHER> 1,923
<INCOME-PRETAX> 2,075
<INCOME-PRE-EXTRAORDINARY> 1,573
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,573
<EPS-PRIMARY> 0.30
<EPS-DILUTED> 0.30
<YIELD-ACTUAL> 4.45
<LOANS-NON> 2,572
<LOANS-PAST> 731
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 1,243
<ALLOWANCE-OPEN> 3,869
<CHARGE-OFFS> 121
<RECOVERIES> 29
<ALLOWANCE-CLOSE> 3,900
<ALLOWANCE-DOMESTIC> 3,900
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
