Hampton Roads Bankshares Inc (HMPR, Financial) filed Quarterly Report for the period ended 2010-09-30.
Hampton Roads Bankshares Inc has a market cap of $15.9 million; its shares were traded at around $0.72 with and P/S ratio of 0.1. HMPR is in the portfolios of Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC.
Net Interest Income. Net interest income, a major component of our earnings, is the difference between the income generated by interest-earning assets reduced by the cost of interest-bearing liabilities. Net interest income for the three months ended September 30, 2010 was $17.9 million, a decrease of $8.5 million from the three months ended September 30, 2009. Net interest income for the nine months ended September 30, 2010 was $57.6 million, a decrease of $20.9 million from the nine months ended September 30, 2009. The decrease in net interest income was primarily the result of a decrease in interest income from loans of $21.7 million for the nine months ended September 30, 2010 compared to the nine months ended September 30, 2009. The net interest margin, which is calculated by expressing annualized net interest income as a percentage of average interest-earning assets, is an indicator of effectiveness in generating income from earning assets. Our net interest margin decreased to 3.10% for the first nine months ended September 30, 2010 from 3.75% during the first nine months of 2009. The net interest margin was 2.90% for the three months ended September 30, 2010 compared to 3.80% for the three months ended September 30, 2009. The decline in net interest margin from prior periods is due primarily to increased levels of nonaccrual loans and the effect of purchase accounting adjustments which inflated net interest income and subsequently net interest margin in 2009.
Our interest-earning assets consist of loans, investment securities, overnight funds sold and due from FRB, and interest-bearing deposits in other banks. Interest income on loans, including fees, decreased $8.2 million and $21.7 million to $27.7 million and $88.1 million for the three and nine months, respectively, ended September 30, 2010, as compared to the same time periods during 2009. These decreases were a result of decreases in average loan balances and an increase in nonaccrual loans. Interest income on investment securities increased $111 thousand and $192 thousand for the three and nine months, respectively, ended September 30, 2010 compared to the same time period during 2009. Interest income on interest-bearing deposits in other banks decreased $9 thousand and $20 thousand for the three and nine month periods, respectively, ended September 30, 2010 compared to the same time period during 2009. Interest income on overnight funds sold and due from FRB increased $208 thousand and $462 thousand for the three and nine months, respectively, ended September 30, 2010 compared to the same time period during 2009. During 2010, as loan balances decreased and deposit balances increased, the Company elected to maximize liquidity by increasing its deposit balance at the FRB.
Our interest-bearing liabilities consist of deposit accounts and borrowings. Interest expense on deposits increased $901 thousand and $1.8 million to $9.4 million and $29.7 million for the three and nine months, respectively, ended September 30, 2010 compared to the same time periods during 2009. This increase resulted from a $284.8 million increase in average interest-bearing deposits, offset by a 12-basis point decrease in the average interest rate on deposits for the nine months ended September 30, 2010 compared to the nine months ended September 30, 2009. This decrease in our average deposit rates resulted in large part from declining rates on certificates of deposits and savings deposits. A reduction of our average rate on time deposits to 1.91% for the first nine months of 2010 from 2.31% for the first nine months of 2009 contributed significantly toward the decrease in overall deposit rates. Interest expense on borrowings, which consisted of FHLB borrowings, other borrowings, and overnight funds purchased decreased $259 thousand and $2.0 million for the three and nine months, respectively, ended September 30, 2010 compared to the same time periods during 2009. The $155.4 million decrease in the nine month average borrowings and partially offset by the 51-basis point increase in the average interest rate on borrowings produced this result.
Note: Interest income from loans included fees of $204 at September 30, 2010 and $1,324 at September 30, 2009. Average nonaccrual loans of $357 are excluded from average loans at September 30, 2010. Average nonaccrual loans for September 30, 2009 were not material and are included in average loans above.
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Hampton Roads Bankshares Inc has a market cap of $15.9 million; its shares were traded at around $0.72 with and P/S ratio of 0.1. HMPR is in the portfolios of Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
shareholders of $64.5 million, compared to the net loss available to common shareholders of $56.6 million for the first nine months of 2009. The loss available to common shareholders for the nine months ended September 30, 2010 was driven by provision for loan losses expense of $183.9 million necessary to maintain the allowance for loan losses at a level necessary to cover expected losses inherent in the loan portfolio partially offset by the benefit to common shareholders from the conversion of preferred stock to Common Stock which added $111.7 million of income available to common shareholders. Diluted income per common share for the three months was $1.02 and diluted loss per common share for the nine months ended September 30, 2010 was $2.63, an increased gain of $1.70 over the diluted loss per common share of $0.68 for the three months ended September 30, 2009 and an increased loss of $0.03 over the diluted loss per common share of $2.60 for the three months ended September 30, 2009.Net Interest Income. Net interest income, a major component of our earnings, is the difference between the income generated by interest-earning assets reduced by the cost of interest-bearing liabilities. Net interest income for the three months ended September 30, 2010 was $17.9 million, a decrease of $8.5 million from the three months ended September 30, 2009. Net interest income for the nine months ended September 30, 2010 was $57.6 million, a decrease of $20.9 million from the nine months ended September 30, 2009. The decrease in net interest income was primarily the result of a decrease in interest income from loans of $21.7 million for the nine months ended September 30, 2010 compared to the nine months ended September 30, 2009. The net interest margin, which is calculated by expressing annualized net interest income as a percentage of average interest-earning assets, is an indicator of effectiveness in generating income from earning assets. Our net interest margin decreased to 3.10% for the first nine months ended September 30, 2010 from 3.75% during the first nine months of 2009. The net interest margin was 2.90% for the three months ended September 30, 2010 compared to 3.80% for the three months ended September 30, 2009. The decline in net interest margin from prior periods is due primarily to increased levels of nonaccrual loans and the effect of purchase accounting adjustments which inflated net interest income and subsequently net interest margin in 2009.
Our interest-earning assets consist of loans, investment securities, overnight funds sold and due from FRB, and interest-bearing deposits in other banks. Interest income on loans, including fees, decreased $8.2 million and $21.7 million to $27.7 million and $88.1 million for the three and nine months, respectively, ended September 30, 2010, as compared to the same time periods during 2009. These decreases were a result of decreases in average loan balances and an increase in nonaccrual loans. Interest income on investment securities increased $111 thousand and $192 thousand for the three and nine months, respectively, ended September 30, 2010 compared to the same time period during 2009. Interest income on interest-bearing deposits in other banks decreased $9 thousand and $20 thousand for the three and nine month periods, respectively, ended September 30, 2010 compared to the same time period during 2009. Interest income on overnight funds sold and due from FRB increased $208 thousand and $462 thousand for the three and nine months, respectively, ended September 30, 2010 compared to the same time period during 2009. During 2010, as loan balances decreased and deposit balances increased, the Company elected to maximize liquidity by increasing its deposit balance at the FRB.
Our interest-bearing liabilities consist of deposit accounts and borrowings. Interest expense on deposits increased $901 thousand and $1.8 million to $9.4 million and $29.7 million for the three and nine months, respectively, ended September 30, 2010 compared to the same time periods during 2009. This increase resulted from a $284.8 million increase in average interest-bearing deposits, offset by a 12-basis point decrease in the average interest rate on deposits for the nine months ended September 30, 2010 compared to the nine months ended September 30, 2009. This decrease in our average deposit rates resulted in large part from declining rates on certificates of deposits and savings deposits. A reduction of our average rate on time deposits to 1.91% for the first nine months of 2010 from 2.31% for the first nine months of 2009 contributed significantly toward the decrease in overall deposit rates. Interest expense on borrowings, which consisted of FHLB borrowings, other borrowings, and overnight funds purchased decreased $259 thousand and $2.0 million for the three and nine months, respectively, ended September 30, 2010 compared to the same time periods during 2009. The $155.4 million decrease in the nine month average borrowings and partially offset by the 51-basis point increase in the average interest rate on borrowings produced this result.
Note: Interest income from loans included fees of $204 at September 30, 2010 and $1,324 at September 30, 2009. Average nonaccrual loans of $357 are excluded from average loans at September 30, 2010. Average nonaccrual loans for September 30, 2009 were not material and are included in average loans above.
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