Hampton Roads Bankshares Inc. in Norfolk, Va., announced that it raised $255 million through a fully subscribed private placement of its common stock.

The $3 billion-asset company said in May that Carlyle Group and Anchorage Advisors LLC had agreed to buy $73 million of common stock as the lead investors in the capital-raising effort.

The additional capital came from institutional investors.

Hampton Roads is expected to bring in another $20 million through a rights offering to existing shareholders. The company plans to use the proceeds to make capital contributions to its subsidiary banks.

As of March 31, the company had a consolidated total risk-based capital ratio of 6.55%.

"This is another significant step forward in the process of substantially strengthening our balance sheet and providing a solid foundation for the future," the company's chief executive, John A.B. Davies Jr., said in a press release Thursday.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.