Hampton Roads Bankshares Inc.'s shares plunged Monday after the company posted a third-quarter loss of $26.7 million, compared with a loss of $18.8 million in the second quarter.
The $2.4 billion-asset company, which reported its earnings after the markets closed on Friday, said that third-quarter results were affected by an increased provision for loan losses and declines net interest and noninterest income.
Though its nonperforming assets declined about 4% from the second quarter, to $237 million, its provision for loans losses rose 20%, to $17.7 million. When compared with last year's third quarter, however, the loss provision declined 79%.
"Reducing our portfolio of problem assets remains our number one focus and we continue to make slow but steady progress towards that goal," said Douglas Glenn, interim president and chief executive, in a news release.
The company's net interest income was $17.6 million, down almost 4% from the prior quarter as earnings assets declined primarily in the loan portfolio. The interest margin remained steady at 3.19% as lower funding costs offset declines in asset yields during the quarter.
Noninterest income declined 94% from the second quarter, to $200,000, due to increased losses and impairments on foreclosed real estate. This was offset by gains on the sale of investment securities and from the completed sale of the company's insurance agency.
At midday Monday, Hampton Roads were down more than 17% from Friday's close, to $4.95.
