Hampton Roads Bankshares (HMPR) in Virginia Beach, Va., reported higher net income that largely reflected lower expenses and a spike in income from bank-owned life insurance.
The $2 billion-asset company's first-quarter earnings totaled $3.9 million, compared to $632,000 a year earlier. Noninterest expenses fell 5%, to $18.5 million, as the company reported lower occupancy costs and reduced expenses tied to Federal Deposit Insurance Corp. insurance.
Noninterest income jumped 35%, to $7.3 million, though $3.2 million of that amount came from bank-owned life insurance. Hampton Roads' income from bank-owned life insurance totaled just $373,000 a year earlier. The company said in a press release that the spike in insurance income was tied to the deaths of a current employee and a former employee during the quarter.
The company recorded a $100,000 loan-loss provision. Nonperforming assets as a percentage of total assets fell to 5.16% compared to 7.51% a year earlier. Net chargeoffs fell 17%, to $3.9 million.