Hampton Roads Bankshares Inc (HMPR, Financial) filed Quarterly Report for the period ended 2009-03-31.
HAMPTON ROAD BANKSHARES INC. is a financial holding company headquartered in Norfolk Virginia. The Company's primary subsidiary is Bank of Hampton Roads. The Bank engages in general community and commercial banking business targeting the needs of individuals and small to medium-sized businesses. Currently the Bank operates eighteen banking offices in the Hampton Roads region of southeastern Virginia. The Company's principal business is to attract deposits and to loan or invest those deposits. It offers all traditional loan and deposit banking services as well as telephone banking Internet banking and debit cards. The Company accepts both commercial and consumer deposits. Hampton Roads Bankshares Inc has a market cap of $178.2 million; its shares were traded at around $8.175 with a P/E ratio of 12.4 and P/S ratio of 3.4. The dividend yield of Hampton Roads Bankshares Inc stocks is 5.4%.
Noninterest Expense. Noninterest expense represents our overhead expenses. Total noninterest expense increased $15.7 million or 382% for the first three months of 2009 compared to the first three months of 2008. This increase was attributable primarily to salaries and employee benefits, which increased 337% to $11.2 million in the first three months of 2009 over comparative 2008. The increase is a direct result of the mergers with SFC and GFH. Our number of full-time employees increased from 138 on March 31, 2008 to 697 on March 31, 2009. The Company saw a 334% increase in occupancy expense related to the increased number of properties obtained as a result of the acquisitions. Data processing expense, another category of noninterest expense, posted an increase of 609% for the first three months of 2009 compared to the first three months of 2008, resulting from the cost of Gateway Bank and Shore Banks outsourced data processing functions. Other noninterest expenses posted an increase of 486% to $5.5 million for the first three months of 2009 compared to the same time period during 2008. The ratio of annualized noninterest expense to average total assets was 2.6% for the first three months of 2009 compared to 2.9% for the first three months of 2008.
Income Tax Provision. Income tax expense for the first three months of 2009 and 2008 was $4.1 million and $760 thousand, respectively. Our effective tax rate was 35.8% and 34.2% in the first quarters of 2009 and 2008, respectively.
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HAMPTON ROAD BANKSHARES INC. is a financial holding company headquartered in Norfolk Virginia. The Company's primary subsidiary is Bank of Hampton Roads. The Bank engages in general community and commercial banking business targeting the needs of individuals and small to medium-sized businesses. Currently the Bank operates eighteen banking offices in the Hampton Roads region of southeastern Virginia. The Company's principal business is to attract deposits and to loan or invest those deposits. It offers all traditional loan and deposit banking services as well as telephone banking Internet banking and debit cards. The Company accepts both commercial and consumer deposits. Hampton Roads Bankshares Inc has a market cap of $178.2 million; its shares were traded at around $8.175 with a P/E ratio of 12.4 and P/S ratio of 3.4. The dividend yield of Hampton Roads Bankshares Inc stocks is 5.4%.
Highlight of Business Operations:
Noninterest Income. We reported an increase in total noninterest income of $5.2 million or 427% for the first three months of 2009 compared to the same period in 2008. Service charges on deposit accounts, our largest source of noninterest income, increased $1.6 million or 358% to $2.1 million for the first three months of 2009 compared to the same period in 2008. As part of the Gateway merger, we acquired mortgage, insurance, and brokerage subsidiaries. Revenue from these operations was $1.6 million, $1.3 million, and $46 thousand, respectively, during the first quarter of 2009. Noninterest income comprised 19.8% of total revenue in the first three months of 2009 compared to 18.5% in the first three months of 2008.Noninterest Expense. Noninterest expense represents our overhead expenses. Total noninterest expense increased $15.7 million or 382% for the first three months of 2009 compared to the first three months of 2008. This increase was attributable primarily to salaries and employee benefits, which increased 337% to $11.2 million in the first three months of 2009 over comparative 2008. The increase is a direct result of the mergers with SFC and GFH. Our number of full-time employees increased from 138 on March 31, 2008 to 697 on March 31, 2009. The Company saw a 334% increase in occupancy expense related to the increased number of properties obtained as a result of the acquisitions. Data processing expense, another category of noninterest expense, posted an increase of 609% for the first three months of 2009 compared to the first three months of 2008, resulting from the cost of Gateway Bank and Shore Banks outsourced data processing functions. Other noninterest expenses posted an increase of 486% to $5.5 million for the first three months of 2009 compared to the same time period during 2008. The ratio of annualized noninterest expense to average total assets was 2.6% for the first three months of 2009 compared to 2.9% for the first three months of 2008.
Income Tax Provision. Income tax expense for the first three months of 2009 and 2008 was $4.1 million and $760 thousand, respectively. Our effective tax rate was 35.8% and 34.2% in the first quarters of 2009 and 2008, respectively.
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