Eastern Virginia Bancshares Finishes $5M Offering

Eastern Virginia Bancshares (EVBS) in Tappahannock has closed a $5 million rights offering.

The rights offering followed a $45 million private placement announced in March, in which the $1.1 billion-asset company sold a 30% stake to institutional investors. The rights offering, which closed on June 28, was oversubscribed and will bring the total value of stock the company will issue to $50 million, it said.

The offering allowed Eastern Virginia's stockholders to buy stock at $4.55 a share, the same price offered in the private placement. Its per-share price was $5.15 in early trading Tuesday.

When Eastern Virginia Bancshares announced the capital raise in March, it said it would use the money to dispose of problem assets and restructure $117.5 million in Federal Home Loan bank advances, with the goal of shedding a 2011 written agreement with the Federal Reserve Board.