The Federal Reserve Bank of Richmond and the Virginia Bureau of Financial Institutions have terminated their regulatory agreement with Hampton Roads Bankshares (HMPR) in Virginia Beach and its subsidiary the Bank of Hampton Roads.
The written agreement was issued in June 2010 over concerns about credit risk management, capital, liquidity and earnings. However, the agreement was lifted because of the "continued strong progress" at Hampton Roads, the agencies said Tuesday.
The holding company had $2 billion in total assets as of Sept. 30. Nonperforming assets had declined to 4.4% of total assets from 7.7% a year earlier.
The bank unit reported a profit of $2.8 million in the third quarter, compared with a $5.9 million loss a year earlier.
"We are proud of the significant improvements in our financial condition and operations," says Douglas Glenn, the president and chief executive officer of Hampton Roads Bankshares. "We believe we are well-positioned to move forward and grow in the future."