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8-K - FORM 8-K - Xenith Bankshares, Inc. | w80998e8vk.htm |
Exhibit 99.1
FOR RELEASE: | December 29, 2010 |
Contact:
|
Douglas J. Glenn Executive Vice President, General Counsel and Chief Operating Officer (757) 217-3634 |
HAMPTON ROADS BANKSHARES ANNOUNCES COMPLETION OF
RIGHTS OFFERING AND SECOND CLOSING OF PRIVATE
PLACEMENT
RIGHTS OFFERING AND SECOND CLOSING OF PRIVATE
PLACEMENT
Private Placement and Rights Offering Raise $295 Million in Capital
Company and Subsidiary Banks Well-Capitalized Under Applicable
Regulatory Requirements
Regulatory Requirements
Norfolk, Virginia, December 29, 2010: Hampton Roads Bankshares, Inc. (NASDAQ: HMPR)
(the Company), the holding company for Bank of Hampton Roads and Shore Bank, today announced the
completion of a $40 million common stock rights offering (the Rights Offering), which
expired at 5:00 p.m., Eastern Time, on December 10, 2010. The Company also announced the second
and final closing of a private placement of its common stock with institutional investors (the
Private Placement), in which the Company raised an additional $20 million on December 28, 2010.
On September 30, 2010, in the first closing of the Private Placement, the Company sold $235 million
worth of its common stock to institutional investors.
In the Rights Offering, the Company offered 100 million shares of common stock at a price of
$0.40 per share to existing holders of its common shares as of the
close of business on September
29, 2010, including holders of the Companys Series A and B preferred shares who tendered such
shares in exchange offers required to be conducted by the agreements governing the Private
Placement (the Investment Agreements). Eligible shareholders who elected to participate in the
Rights Offering purchased 24.4 million shares. Pursuant to the Investment Agreements,
institutional investors participating in the Private Placement honored their backstop
commitments to purchase at the same price per share the remaining 75.6 million shares not purchased
by shareholders eligible to participate in the Rights Offering.
The Private Placement and Rights Offering raised a total of $295 million in new capital before
offering expenses through the sale of 737.5 million shares of common stock at $0.40 per share.
As of September 30, 2010, the Company, Bank of Hampton Roads and Shore Bank were
well-capitalized under applicable banking regulations and the Company expects all entities to
remain well-capitalized at December 31, 2010.
Caution about Forward-Looking Statements
Certain information contained in this discussion may include forward-looking statements.
These forward-looking statements relate to the expected capitalization of the Company and its
subsidiaries at December 31, 2010. There can be no assurances that the Company, Bank of Hampton
Roads and Shore Bank will remain well-capitalized at year end, or that other actual results,
performance or achievements of the Company and its subsidiaries will not differ materially from
those expressed or implied by the forward-looking statements. Factors that could cause actual
events or results to differ significantly from those described in the forward-looking statements
include, but are not limited to, those described in the cautionary language included under the
headings Risk Factors and Managements Discussion and Analysis of Financial Condition and
Results of Operations in the Companys Annual Report on Form 10-K for the year ended December 31,
2009, as amended, and the Companys Quarterly Reports on Forms 10-Q for the quarters ended March
31, 2010, as amended, June 30, 2010, and September 30, 2010, and other filings made with the
Securities and Exchange Commission. This press release does not constitute an offer to sell or a
solicitation of an offer to buy any securities, nor shall there be any sale of securities in any
state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such jurisdiction.
About Hampton Roads Bankshares
Hampton Roads Bankshares, Inc. is a bank holding company that was formed in 2001 and is
headquartered in Norfolk, Virginia. The Companys primary subsidiaries are Bank of Hampton Roads,
which opened for business in 1987, and Shore Bank, which opened in 1961 (the Banks). The Banks
engage in general community and commercial banking business, targeting the needs of individuals and
small to medium-sized businesses. Currently, Bank of Hampton Roads operates twenty-seven banking
offices in the Hampton Roads region of southeastern Virginia and twenty-three offices in Virginia
and North Carolina doing business as Gateway Bank & Trust Co. Shore Bank serves the Eastern Shore
of Maryland and Virginia through eight banking offices and fifteen ATMs. Through various
affiliates, the Banks also offer mortgage banking services, insurance, title insurance, and
investment products. Shares of the Companys common stock are traded on the NASDAQ Global Select
Market under the symbol HMPR. Additional information about the Company and its subsidiaries can
be found at www.hamptonroadsbanksharesinc.com.
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