Eastern Virginia Bankshares, Inc. (EVBS) said Tuesday that it has entered into securities purchase agreements with affiliates of Castle Creek Capital Partners and GCP Capital Partners and certain other institutional investors pursuant to which it expects to raise aggregate gross proceeds of $45.0 million through private placements of about 4.6 million shares of common stock and 5.2 million shares of a new series of non-voting mandatorily convertible non-cumulative preferred stock, each at $4.55 per share.
The company also said it plans to conduct a $5.0 million rights offering to allow existing shareholders to purchase common stock at the same purchase price per share as the investors in the private placements.
The closing of the rights offering will be conditioned on the closing of the private placements.
The company said it plans to use the gross proceeds from the private placements and the rights offering for general corporate purposes, including strengthening its balance sheet, the accelerated resolution and disposition of assets adversely classified by the company and the optimization of its balance sheet through the restructuring of FHLB advances, with ultimate goals of repurchasing its preferred stock and warrants issued to the U.S. Treasury through the Troubled Asset Relief Program and exiting from the previously disclosed Written Agreement with the Federal Reserve Bank of Richmond and the Virginia Bureau of Financial Institutions.
Sepaately, Eastern Virginia Bankshares reported net income available to common shareholders for the fourth quarter of $554,000 or $0.09 per share, compared to $217,000 or $0.04 per share for the year-ago quarter.
For comments and feedback: editorial@rttnews.com