Profile: Hampton Roads Bankshares, Inc. (HMPR.O)

Hampton Roads Bankshares, Inc., incorporated on February 28, 2001, primarily serves as a holding company for the Bank of Hampton Roads (the Bank). The Bank engages in a general community and commercial banking business, emphasizing the needs of individuals, as well as small and medium-sized businesses in its primary service area which include South Hampton Roads, Virginia, the Northeastern, Southeastern and Research Triangle regions of North Carolina, the Eastern Shore of Virginia and Maryland, and Richmond, Virginia. The Bank operates 18 banking offices in the Hampton Roads region of southeastern Virginia, including nine offices in the city of Chesapeake, four offices in each of the cities of Norfolk and Virginia Beach, and one office in the city of Suffolk. 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. These deposits are in varied forms of both demand and time accounts, including checking accounts, interest checking, money market accounts, savings accounts, certificates of deposit and individual retirement account (IRA) accounts. On June 1, 2008, the Company acquired Shore Financial Corporation (SFC). On December 31, 2008, Hampton Roads Bankshares Inc. acquired all of the outstanding shares of Gateway Financial Holdings (GFH).

The Company offers a range of commercial, real estate and consumer lending products and services. Its loan portfolio is include commercial, construction, real estate-commercial mortgage, real estate-residential mortgage, and installment loans to individuals. Commercial loans are made to to businesses which are not collateralized by real estate. The purpose of commercial loans is for the financing of accounts receivable, inventory, or equipment and machinery. Commercial loans accounted for 17.33% of its loan portfolio at December 31, 2008. Construction and development loans are made to individuals and businesses for the purpose of construction of single family residential properties, multi-family properties, and commercial projects as well as the development of residential neighborhoods and commercial office parks. Construction loans accounted for 34.45% of its loan portfolio at December 31, 2008.

The Bank offers range of residential mortgage loans through both its affiliate, Tidewater Home Funding, LLC (THF) and its subsidiary, Gateway Bank Mortgage, Inc. First mortgage loans are made for the purchase of permanent residences, second homes, or residential investment property. Second mortgages and home equity loans are for personal, family and household purposes such as home improvements, major purchases, education, and other personal needs. Real estate-residential mortgage loans accounted for 20.30% of its loan portfolio at December 31, 2008. Installment loans to individuals are made on a regular basis for personal, family, and general household purposes. The Bank makes automobile loans, home improvement loans, loans for vacations, and debt consolidation loans. Installment loans to individuals accounted for 1.92% of its loan portfolio at December 31, 2008.

The Company offers a range of interest-bearing and non-interest-bearing deposit accounts, including commercial and retail checking accounts, money market accounts, individual retirement accounts, regular interest-bearing savings accounts and certificates of deposit with a range of maturity date options. The primary sources of deposits are small and medium-sized businesses and individuals within its target market.

The Company offers other banking-related specialized products and services to its customers, such as travelers’ checks, coin counters, wire services, and safe deposit box services. It issues letters of credit and standby letters of credit for some of its commercial customers, most of which are related to real estate construction loans.

Company also offers other services that complement the core financial services offered by the Banks. Three of its wholly owned subsidiaries, HR Investments, Shore Investments Inc., and Gateway Investment Services, Inc., provide securities, brokerage and investment advisory services and are capable of handling many aspects of wealth management including stocks, bonds, annuities, mutual funds, and financial consultation. Through its subsidiary, Gateway Title Agency, and via its investment in Bankers Title, LLC, the Company offers title insurance to its real estate loan customers. In addition, the Company provides insurance products to businesses and individuals through its subsidiary insurance agency, Gateway Insurance Services, Inc.