Eastern Virginia Bankshares Inc. has a market cap of $22.72 million; its shares were traded at around $3.8 with and P/S ratio of 0.51. The dividend yield of Eastern Virginia Bankshares Inc. stocks is 1.05%.
Highlight of Business Operations:The reported net income of $1.6 million and net loss of $3.0 million, respectively, for the three and nine months ended September 30, 2010 and the reported losses of $8.5 million and $9.6 million, respectively, for the three and nine months ended September 30, 2009 equate to the following performance metrics:
On a per share basis, the diluted and basic earnings (loss) per common share (EPS) are $0.20 and ($0.70), respectively, for the three and nine months ended September 30, 2010. This compares to an EPS of ($1.50) and ($1.80), respectively, for the three and nine months ended September 30, 2009.
At September 30, 2010, our total outstanding borrowings, short-term and long-term, with the FHLB were $142.5 million, compared to $123.2 million at December 31, 2009. In anticipation of receiving the proceeds from the aforementioned loan sale, we borrowed $25.0 million in short-term advances from the FHLB which allowed us to acquire certain investment securities to lock in investment yields. Subsequent to quarter end, this borrowing was repaid. The growth in our lower cost deposits combined with the lower loan demand allowed us to also retire a $5.7 million long-term FHLB advance upon maturity earlier this year.
Net interest income is the Companys primary source of income. It represents the difference between what the Company pays for deposits and borrowings and the income that can be generated by the investments in loans and marketable securities. Net interest income, on a fully taxable equivalent basis, for the third quarter of 2010, was $9.3 million, an increase of $1.0 million or 12.4% from the same period of last year. For the nine months ended September 30, 2010, net interest income, on a fully tax equivalent basis, was $27.6 million, an increase of $3.2 million, or 13.1% over the same period in 2009. Sequentially, net interest income, on a fully taxable equivalent basis, increased by $182 thousand or 2.0% between the second quarter of 2010 and the third quarter of 2010.
For the third quarter the average securities balance declined by $2.7 million between 2009 and 2010. For the nine month period the decline in average securities balances from 2009 to 2010 was $9.2 million. The decrease on the quarterly basis has slowed compared to earlier in the year as we significantly increased the portfolio balance during the third quarter. In addition, we have also changed the composition of the securities balance. For the third quarter of 2010 as compared to the third quarter of 2009, taxable securities increased by $10.0 million, while tax exempt securities decreased by $13.2 million.
Lower yielding assets caused by the lagging effects of asset re-pricing following cuts in interest rates during 2008 and 2009 were a significant factor in lower total interest income. On a fully tax equivalent basis for the quarter ended September 30, 2010, total interest income declined from $14.3 million to $13.7 million, a decrease of 3.7% from the quarter ended September 30, 2009. For the nine month period, total interest income declined from $43.3 million to $41.2 million, a decrease of 4.8%. For the third quarter, the yield on total earning assets declined from 5.46% to 5.30% between 2009 and 2010. For the nine month period, the yield declined from 5.64% to 5.36% between 2009 and 2010. Included in these calculations are loans that are not accruing interest which have increased from $13.7 million at September 30, 2009 to $19.0 million at September 30, 2010. These loans depress the yield on our earning assets and have also contributed to the overall decline in total interest income. On a quarter over quarter and nine months over nine months basis, average loan balances have increased which has positively affected total interest income. However, the impact of declining loan balances due to weak demand, charge offs and the sale of 1-4 residential mortgage loans during the third quarter of 2010 will become more evident in subsequent periods.
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