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The Virginia company will have a retooled ownership, a new director and more capital after a private placement and rights offering. While Hampton Roads' private equity investors will own 90% of the company following those moves, early indications are that those companies are content with management's progress purging bad loans and cutting costs.
May 22
Hampton Roads Bankshares's (HMPR) second-quarter loss narrowed from a year earlier as improveed credit quality aided the Norfolk, Va., company.
The $2.1 billion-asset company said Tuesday that it lost $5.7 million, down from an $18.8 million loss a year earlier. For the first six months of 2012, Hampton Roads lost $13.6 million, compared with a $50.5 million loss a year earlier.
The loan-loss provision fell more than 70% from a year earlier, to $4.3 million, because of the continued reduction in problem loans and lower levels of chargeoffs. Nonperforming assets fell more than 8%, from the first quarter, to $173.5 million, marking the seventh straight quarterly decline in problematic assets.
Hampton Roads benefited from lower operating expenses. Noninterest expenses fell more than 26% from a year earlier, to $18.8 million, reflecting branch closings and sales and improved efficiency. The company said in April that it would sell three branches in North Carolina after
The company's loans dropped 16% from a year earlier, to $1.4 billion, with declines in the commercial, construction and residential and commercial real estate portfolios. Real estate losses have pummeled Hampton Roads; the company has lost more than $420 million since early 2009. It raised $50 million in the second quarter and has plans to raise another $30 million to
