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Commonwealth Bankshares Inc. and Hampton Roads Bankshares Inc., both in Norfolk, are potentially in hot water with federal officials. For some observers, the troubles began when each tried to keep pace with the biggest community bank in their market.
July 7
Hampton Roads Bankshares Inc. in Norfolk, Va., announced Monday that it plans to pursue a stock offering next quarter in which it hopes to raise between $54 million and $86 million.
Separately, the $2.4 billion-asset company also said that its board has appointed Douglas J. Glenn as its president and chief executive. Glenn, who had been the company's general counsel, has served as interim president and CEO since John A.B. "Andy" Davies
In a news release, Chairman Henry P. Custis credited Glenn for playing a key role in helping the company secure $275 million of capital from private-equity investors in 2010. Under Davies and then Glenn, the company has also been selling off business units and branches in an effort to streamline operations and focus on core markets.
The company did not disclose why it wants to raise additional capital, but it appears it wants to shore up capital ratios after suffering losses of nearly $200 million in 2010 and 2011. At Dec. 31, its ratio of tangible common equity to tangible assets was 5.08%, down from 6.23% a year earlier. Hampton Roads did not say how many shares it intends to sell or at what price.
The shares closed Monday at $3.04.
