Demand for loans and fewer credit losses narrowed losses at Hampton Roads Bankshares (HMPR) in Norfolk, Va. in the third quarter.
The $2.1 billion-asset company losses were reduced by 77% from a year earlier, to $5.9 million.
Net interest income fell 10% from a year earlier, to $15.8 million. The net interest margin expanded by 36 basis points from a year earlier, to 3.55%, because of lower funding costs and a smaller share of overnight funds as a percentage of interest-earning assets.
Noninterest income totaled $2.2 million in the third quarter, compared with a $200,000 loss a year earlier. Noninterest expense fell 15% from a year earlier, to $20.4 million, reflecting steps by the company to sell branches, operate more efficiently and improve credit quality.
The company's loan-loss provision fell 74% from a year earlier, to $14.1 million.
“Third quarter results reflect continued progress across a number of key areas, including increases in core deposits and mortgage originations, improvements in asset quality and capital ratios, and the eighth consecutive quarterly decline in nonperforming assets," Douglas Glenn, the company’s chief executive, said in a press release. “We continue to take actions to strengthen our franchise, improve the efficiency of our operations, and position the Company for growth and profitability.”
During the quarter, Hampton Roads completed a public offering that raised $45 million. The offering followed a $50 million infusion of capital from three private-equity partners.
Hampton Roads suffered steep losses from the housing crisis and its 2009 purchase of Gateway Bank in North Carolina. The company last turned a profit in the first quarter of 2009.