Hampton Roads Bankshares (HMPR) in Virginia Beach, Va., made big gains in the third quarter because of lower costs tied to foreclosed properties and repossessed assets.
The $2 billion-asset company earned $2.8 million in the third quarter, compared to a $5.9 million loss a year earlier.
Noninterest income spiked more than doubled from a year earlier, to $7.9 million. The company attributed the increase to major declines in losses on other real estate owned and repossessions.
Net interest income was relatively flat from a year earlier, to $15.8 million, as a slight dip in revenue from loans and investment securities offset lower interest expenses. The company's net interest margin widened by 7 basis points from a year earlier, to 3.42%.
Noninterest expense rose 2% from a year earlier, to $20.8 million, because of higher expenses tied to salary and employee benefits and property costs.
Steadily improving credit quality let Hampton Roads avoid recording a loan-loss provision in the third quarter, compared to a $2.5 million provision a year earlier. The company also recovered $1.9 million from loans that it had previously been charged off.