Eastern Virginia Bankshares Inc
Eastern Virginia Bankshares — Shareholder Meeting (April 2010)
20 slides from Eastern Virginia Bankshares's shareholder meeting presentation, Apr 16, 2010
Slide 1: EVB Celebrates 100 Years of Serving its Communities
EVB Celebrates 100 Years of Serving its Communities Mappy 100th Anniversa uy p.century of Community Banking
Slide 2: Eastern Virginia Bankshares, April 15, 2010
EASTERN VIRGINIA BANKSHARES April 15, 2010
Slide 3: The Year — Recap Highlights
The Year — Recap Highlights Depression * Started in 2008 and continued through 2009 * Nation faced with enormous hurdles: * Fallout resulting from subprime loan market * Government’s takeover of FHLMC and FNMA * Financial collapse of 140 banks * Unemployment reaching double digits * Stock and home v
Slide 4: Events Impacting EVB's Earnings and Stockholders
Events Impacting EVB’s Earnings and Stockholders Portfolio * Decision to Withdraw First Capital Merger Application * FDIC Premiums * Economy - Slow Affecting Loan Portfolio 13)
Slide 5: Trust Preferred Securities
Trust Preferred Securities * Securities comprising banks Very safe and sound strategy when purchased At acquisition, historical performance reflected no defaults --highly rated * Purchase strategy: Mitigate risk — Carried floating rate As economy experienced bank failures, securities impacted, resul
Slide 6: Merger Application Withdrawal
Merger Application Withdrawal * Mutual agreement to terminate definitive merger agreement * Major obstacle * Current regulatory environment * Continued delay would potentially weaken both companies: * Postponed strategic planning * Brand awareness diminishing & 6
Slide 7: FDIC Premiums
FDIC Premiums * 2008 $ 500,000 * 2009 $1.71 million * 2010 projected $1.90 million * Prepayment next 3 years $5.43 million ie)
Slide 8: There are still many uncertainties in our economy
* There are still many uncertainties in our economy. Have we hit the bottom? * Unemployment figures continue to impact the workforce, which impacts customers’ ability to borrow and service current loans. * Business spending is sluggish. 1é)
Slide 9: Major Challenges Facing Community Banks
Major Challenges Facing Community Banks * Credit Quality * Compression of Net Interest Margin * Maintaining Customer Confidence * Regulatory Burdens * Recovery Expected to be Slow
Slide 10: Financial Overview
Financial Overview ® Returned to quarterly profitability 4" quarter despite: * Prepaying premiums over next 3 years * Reserving for anticipated bank failures * Reserving for loan loss reserve * Cautiously optimistic Hopeful that this is an indication that we are seeing a trend in returning to restor
Slide 11: Financial Overview
Financial Overview Interest income Interest expense Net interest stceme Nonintcrest income Noninterest expense Income before provision and ‘gains/(losses) Provision for loan les Gains/(lowses) Pretax income Income taxi(bencfity Net Income(loss) Eficctive preferred dividend Net income available to co
Slide 12: Moving Forward
Moving Forward * Provide our Customers with a TOTAL CUSTOMER SOLUTION * What is this? * Build comprehensive suite of financial services * WOW Service * Relationship Building * Share of Wallet re)
Slide 13: Moving forward continued...
Moving forward continued... * Dedicated Resources to Creation of Division * Recognized Opportunity * Larger Banks Not Proactively Seeking Small Business
Slide 14: Focus for 2010
Foeus for 2010 * Liquidity * Loan growth
Slide 15: Celebrate 100 years of Serving Community
* Celebrate 100 years of Serving Community * Few Companies Enjoy this Status — Particularly in this Environment * Persevered through: * Great Depression ° 1970s Recession ° S&L Crisis of the 80s * Bank Merger and Acquisition Frenzy of 1990s & 15
Slide 16: Celebrate Centennial
Celebrate Centennial * Join Us in Celebrating this Milestone * May 7 designated as “EVB Day” in Branches * Be on the Lookout for Many Other Exciting Activities Leading Up to Anniversary and Throughout Year * Special Video Projected at Conclusion of Meeting * Many of your family, friends, and neighbo
Slide 17: Robert L. Covington Remembered
Robert L. Covington Remembered * Robert L. Covington * Faithfully served our company for 40 years * Gentleman of highest integrity, keen intellect, wisdom * Led by example * Respected by all * Staunch supporter of his bank * Served his community tirelessly ° Model husband and father @
Slide 18: Your Company
Your Company Virg ikshares co ' as hee tor 100 years" ° Safe * Solid * Sound 18 * Conservative and prudent in business a.
Slide 19: Thank you for your loyalty, support, and investment
* Thank you for your loyalty, support, and investment in Eastern Virginia Bankshares. re)
Slide 20: Eastern Virginia Bankshares
EASTERN VIRGINIA BANKSHARES
Eastern Virginia Bankshares — Shareholder Meeting (April 2010) on 6ix