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TheStreet Open House

Hampton Roads Bankshares Announces First Quarter Financial Results

Stock quotes in this article: HMPR

  • Net income available to shareholders of $0.6 million, which includes a $2.8 million branch consolidation charge
  • Successful money market campaign raises more than $60 million of deposits in quarter
  • Loan originations increase by 72% year-over-year to $83 million
  • Nonperforming assets decline for tenth consecutive quarter

VIRGINIA BEACH, Va., April 17, 2013 (GLOBE NEWSWIRE) -- Hampton Roads Bankshares, Inc. (the "Company") (Nasdaq:HMPR), the holding company of the Bank of Hampton Roads and Shore Bank, today announced financial results for the first quarter of 2013. The Company reported a net profit available to shareholders of $0.6 million, which includes a $2.8 million charge related to a previously-announced branch consolidation, compared to a net loss available to shareholders of $7.9 million for the first quarter of 2012 and a net loss available to shareholders of $5.6 million for the fourth quarter of 2012.

"The Company's return to profitability in the first quarter, and a year-over-year increase of greater than $8.5 million in earnings, which includes this quarter's $2.8 million branch consolidation charge, reflect strong progress on many fronts," said Doug Glenn, President and Chief Executive Officer. "We have positioned the Company for continuing improvement in performance through a sharp focus on our core community banking franchise, greater operating efficiency, and an improved balance sheet. Going forward, we will continue to implement and refine our One Bank strategy, which is designed to consistently deliver choice, convenience and outstanding service to our customers through a strong team of bankers and the right mix of branches and electronic banking services."

Net interest income for the first quarter of 2013 was $15.9 million compared to $16.7 million in the first quarter of 2012 and $16.3 million in the fourth quarter of 2012. The year over year decline in net interest income is the result of declines in average interest earning assets, partly offset by an increase in net interest margin. Net interest margin was 3.45% in the first quarter compared to 3.39% 1 in the first quarter of last year and 3.42% 2 in the fourth quarter of 2012. Net interest margin improvement on a year over year and linked quarter basis is attributable to a reduction in funding costs and a decline in nonperforming loans.

Due to continued improvement in overall loan quality, the Company did not record a provision for loan loss expense in the first quarter of 2013. The Company recorded a $7.3 million provision for loan loss expense in the first quarter of 2012 and a $0.9 million provision for loan loss expense in the fourth quarter of 2012. The decision not to record a provision for loan loss expense in the quarter reflected management's consideration of the qualitative and quantitative aspects of the allowance for loan losses. Ultimately, management concluded that the current level of the allowance for loan losses was appropriate given the Company's current expectations for known and inherent credit losses in the loan portfolio. 

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