Eastern Virginia Bankshares Inc. (EVBS, Financial) filed Quarterly Report for the period ended 2011-03-31.
Eastern Virginia Bankshares Inc. has a market cap of $20.56 million; its shares were traded at around $3.43 with and P/S ratio of 0.23.
Total interest income, on a fully tax equivalent basis, decreased $989 thousand from $13.9 million for the three months ended March 31, 2010 to $12.9 million for the same period of 2011. This was driven by a decline in the yield on interest earning assets from 5.47% for the three months ended March 31, 2010 to 5.12% for the same period of 2011, and the decrease in average earning assets during the same periods. These decreases were primarily the result of reduced yields on the investment securities portfolio and a significant decrease in the average loan balances.
Average total loan balances decreased $84.2 million from $855.9 million for the three months ended March 31, 2010 to $771.7 million for the same period of 2011. The yield on loans declined to 5.71% for the first three months of 2011 compared to 5.78% for the same period of 2010. This resulted in a $1.3 million, or 7 basis points, drop in interest income generated by our largest earning asset category from the prior years income level to $10.9 million for quarter ended March 31, 2011 compared to $12.2 million for the same period in 2010. Interest income generated by the loan portfolio decreased due to weak loan demand, adjustments to our variable rate loans in the low interest rate environment, increased charge-offs, payment curtailments on outstanding loans and an increase in nonperforming loans.
Average investment security balances increased $85.1 million from $151.3 million for the three months ended March 31, 2010 to $236.4 million for the same period in 2011. While the average investment securities balance increased, the yield on securities declined 89 basis points from 4.33% for the first quarter of 2010 to 3.44% for the first quarter of 2011. The lower yield resulted from investing in lower risk, shorter duration investments which had a corresponding
Our excess funds are invested in short term investments. Average interest bearing deposits in other banks decreased $7.9 million from $19.1 million for the first three months of 2010 to $11.2 million for the same period 2011, while federal funds sold decreased $338 thousand to $435 thousand during the first quarter of 2011 compared to $773 thousand for the same period in 2010. This reflected a change in our overall investment strategy as we began to strategically deploy excess liquidity in short duration, lower risk securities as investment opportunities were available. In total, our excess funds decreased $8.3 million from the first quarter of 2010 to the first quarter of 2011.
Average interest bearing deposits increased $8.1 million from $756.9 million for the first quarter of 2010 to $765.0 million for the first quarter of 2011. Changes within the mix of these balances and the corresponding decrease in the rates on deposits were significant drivers for the reduction in interest expense related to interest-bearing deposits and helped to minimize the corresponding decrease in our net interest income. Our overall cost of funds decreased $760 thousand, as the total rate for average interest bearing deposits fell from 1.74% for the three months ended March 31, 2010 to 1.39% for the same period in 2011, a drop of 35 basis points. Deposits continued to shift from higher priced certificates of deposit to lower priced checking accounts (or NOW accounts), money market and savings accounts. The largest increase from the first quarter of 2010 to the same period in 2011 was in the money market deposits with an increase of $27.2 million in average balance and a corresponding rate decrease of 13 basis points from 1.34% to 1.21% from the first quarter of 2010 to the first quarter of 2011. The aggressively priced NOW balance had an increase of $11.1 million in average balance and a corresponding rate decrease of 34 basis points from 1.29% to 0.95% for the same periods. Average large dollar certificates decreased $14.7 million from $168.9 million during the first quarter of 2010 to $154.2 million during the first quarter of 2011 and the rate dropped 29 basis points from 2.27% in the first three months of 2010 to 1.98% for the same period in 2011. Other certificates average balance declined $17.0 million from $192.3 million during the first quarter of 2010 to $175.3 million for the same period in 2011, with a simultaneous 52 basis point drop in rate. Other interest-bearing liabilities added to the decrease in the cost of funds, primarily because long-term FHLB borrowings cost declined $132 thousand from $1.3 million for the three months ended March 31, 2010 to $1.2 million for the same period in 2011.
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Eastern Virginia Bankshares Inc. has a market cap of $20.56 million; its shares were traded at around $3.43 with and P/S ratio of 0.23.
Highlight of Business Operations:
Net interest income, on a fully tax equivalent basis, decreased $229 thousand or 2.5% to $9.0 million for the three months ended March 31, 2011, down from $9.2 million for the three months ended March 31, 2010. Total average earning assets decreased $7.4 million or 0.7% from $1.03 billion for the three months ended March 31, 2010 to $1.02 billion for the same period of 2011. Total average interest-bearing liabilities increased $2.9 million or 0.3% from $897.5 million for the three months ended March 31, 2010 to $900.4 million for the same period of 2011. The decrease in net interest income was driven by the change in the mix and pricing of the balance sheet components. These shifts resulted in a decrease of 6 basis points in our net interest margin from 3.63% for the three months ended March 31, 2010 to 3.57% for the same period of 2011. The percentage of average earning assets to total average assets remained flat at 93.0% for the three months ended March 31, 2011 and 2010, respectively.Total interest income, on a fully tax equivalent basis, decreased $989 thousand from $13.9 million for the three months ended March 31, 2010 to $12.9 million for the same period of 2011. This was driven by a decline in the yield on interest earning assets from 5.47% for the three months ended March 31, 2010 to 5.12% for the same period of 2011, and the decrease in average earning assets during the same periods. These decreases were primarily the result of reduced yields on the investment securities portfolio and a significant decrease in the average loan balances.
Average total loan balances decreased $84.2 million from $855.9 million for the three months ended March 31, 2010 to $771.7 million for the same period of 2011. The yield on loans declined to 5.71% for the first three months of 2011 compared to 5.78% for the same period of 2010. This resulted in a $1.3 million, or 7 basis points, drop in interest income generated by our largest earning asset category from the prior years income level to $10.9 million for quarter ended March 31, 2011 compared to $12.2 million for the same period in 2010. Interest income generated by the loan portfolio decreased due to weak loan demand, adjustments to our variable rate loans in the low interest rate environment, increased charge-offs, payment curtailments on outstanding loans and an increase in nonperforming loans.
Average investment security balances increased $85.1 million from $151.3 million for the three months ended March 31, 2010 to $236.4 million for the same period in 2011. While the average investment securities balance increased, the yield on securities declined 89 basis points from 4.33% for the first quarter of 2010 to 3.44% for the first quarter of 2011. The lower yield resulted from investing in lower risk, shorter duration investments which had a corresponding
Our excess funds are invested in short term investments. Average interest bearing deposits in other banks decreased $7.9 million from $19.1 million for the first three months of 2010 to $11.2 million for the same period 2011, while federal funds sold decreased $338 thousand to $435 thousand during the first quarter of 2011 compared to $773 thousand for the same period in 2010. This reflected a change in our overall investment strategy as we began to strategically deploy excess liquidity in short duration, lower risk securities as investment opportunities were available. In total, our excess funds decreased $8.3 million from the first quarter of 2010 to the first quarter of 2011.
Average interest bearing deposits increased $8.1 million from $756.9 million for the first quarter of 2010 to $765.0 million for the first quarter of 2011. Changes within the mix of these balances and the corresponding decrease in the rates on deposits were significant drivers for the reduction in interest expense related to interest-bearing deposits and helped to minimize the corresponding decrease in our net interest income. Our overall cost of funds decreased $760 thousand, as the total rate for average interest bearing deposits fell from 1.74% for the three months ended March 31, 2010 to 1.39% for the same period in 2011, a drop of 35 basis points. Deposits continued to shift from higher priced certificates of deposit to lower priced checking accounts (or NOW accounts), money market and savings accounts. The largest increase from the first quarter of 2010 to the same period in 2011 was in the money market deposits with an increase of $27.2 million in average balance and a corresponding rate decrease of 13 basis points from 1.34% to 1.21% from the first quarter of 2010 to the first quarter of 2011. The aggressively priced NOW balance had an increase of $11.1 million in average balance and a corresponding rate decrease of 34 basis points from 1.29% to 0.95% for the same periods. Average large dollar certificates decreased $14.7 million from $168.9 million during the first quarter of 2010 to $154.2 million during the first quarter of 2011 and the rate dropped 29 basis points from 2.27% in the first three months of 2010 to 1.98% for the same period in 2011. Other certificates average balance declined $17.0 million from $192.3 million during the first quarter of 2010 to $175.3 million for the same period in 2011, with a simultaneous 52 basis point drop in rate. Other interest-bearing liabilities added to the decrease in the cost of funds, primarily because long-term FHLB borrowings cost declined $132 thousand from $1.3 million for the three months ended March 31, 2010 to $1.2 million for the same period in 2011.
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