Hampton Roads Bankshares in Norfolk, Va., swung to a loss for the second quarter, suspended its common share dividend and said it plans to offer stock.
The $3.05 billion-asset company said Monday that it had lost $46.2 million, or $2.13 per share, after paying preferred stock dividends. The year earlier, it earned $1.7 million. The loss was largely attributable to a $33.7 million provision for loan losses — up from $274,000 a year earlier — and a $28 million goodwill impairment charge.
The company's board voted July 30 to stop paying quarterly dividends on common shares to preserve capital. It said it expects the suspension to save $8 million a year.
On June 30, it remained well capitalized by regulatory standards, the company said, but it did not state its ratios.
The company said it plans to sell up to 32.5 million shares but did not specify a target price. At midafternoon Hampton Roads stock was off $1.15, at $4 a share.
