Eastern Virginia Bankshares Extends Rights Offering

Eastern Virginia Bankshares (EVBS) in Tappahannock has extended the deadline for a pending rights offering.

The $1 billion-asset company said Tuesday the offering will stay open until June 28. It allows existing shareholders to buy common shares at the same price ($4.55 apiece) as stock sold to the public through a $45 million private placement. The offering, which is expected to raise $5 million, was slated to expire Friday.

Shares of Eastern Virginia lost 1% in trading on Tuesday, to $4.96.

The company said in a news release it extended the offering "due to the high level of interest among shareholders and to ensure sufficient time for the completion and return of the documentation required" for shareholders to participate.

Eastern Virginia said in March that capital it expects to garner from the rights offering and private placement would strengthen its balance sheet while enabling the company to speed the disposition of problem assets.

The company also said it hopes the capital would position it to extricate itself from a written agreement it reached with the Federal Reserve Board in February 2011.