XBKS Xenith Bankshares, Inc.

• Net loss in the fourth quarter of $34.7 million
• Completion of remainder of $295 million recapitalization
• $50 million decline in nonperforming assets during the fourth quarter

Hampton Roads Bankshares, Inc. (the "Company") (Nasdaq:HMPR), the holding company of Bank of Hampton Roads and Shore Bank, today announced financial results for the fourth quarter and full year of 2010. The Company reported a net loss of $34.7 million for the quarter, compared to a net loss (as restated) of $152.2 million for the fourth quarter of 2009. For the full year the Company reported a net loss of $211.3 million, with a net loss to common shareholders of $99.2 million. The full year loss included provisions for loan losses of $211.8 million.

During the fourth quarter, the Company completed the remainder of its $295 million capital raise, resulting in an additional $60 million of equity capital during the quarter. "As one of the few financial institutions successfully recapitalized in 2010, we are pleased to have our capital raise completed," said John A. B. "Andy" Davies, Jr., President and Chief Executive Officer. "This is the beginning of a new era for the Company, its shareholders, loyal customers and our team members."

As of December 31, 2010, the Company exceeded the regulatory capital minimums and Bank of Hampton Roads and Shore Bank were both considered "well-capitalized" under the risk-based capital standards.

In addition, the Company reported a decline of $50.1 million in nonperforming assets during the fourth quarter, from $365.5 million at September 30, 2010 to $315.4 million on December 31, 2010. Said Davies, "The decline in nonperforming assets is very gratifying to see and is a real testament to the hard work and effort of our team. Continuing to clean up our balance sheet remains job one. We have and will continue to focus resources specifically on managing our nonperforming assets." Nonperforming assets represented 11% of total assets at December 31, 2010.

As of December 31, 2010, total assets were $2.9 billion, down from $3.1 billion at September 30, 2010, as loans outstanding declined from $2.1 billion at September 30, 2010 to $1.96 billion at December 31, 2010 due primarily to reductions in nonperforming loans during the quarter. Total deposits declined during the fourth quarter from $2.59 billion to $2.42 billion as the Company continued to reduce its excess cash position and reduce its reliance on wholesale funding. During 2010, the Company reduced its brokered deposits by nearly $250 million, from $386.4 million at December 31, 2009 to $136.8 million at December 31, 2010.

Net interest income for the fourth quarter of 2010 was $18.4 million compared to $17.9 million for the third quarter of 2010, as success in lowering deposit costs and reducing cash balances offset reduced interest income from continued reductions in the size of the loan portfolio. The provision for loan losses was $27.9 million for the fourth quarter of 2010, compared to $83.7 million in the third quarter. 

Noninterest income declined from $6 million in the third quarter to $1.8 million in the fourth quarter as lower origination volumes led to lower mortgage revenue quarter over quarter and impairment charges on foreclosed and repossessed assets increased during the quarter. Noninterest expense increased from $24.8 million in the third quarter to $26.5 million in the fourth quarter due primarily to increased costs related to managing the nonperforming assets.

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 Company's 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-nine banking offices in the Hampton Roads region of southeastern Virginia and twenty-one 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, and investment products. Shares of the Company's 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.

Use of Non-GAAP Financial Measures

This earnings press release contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding our results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the Form 8-K filed related to this release. The Form 8-K can be found on the EDGAR website of the Securities and Exchange Commission (the "SEC") at www.sec.gov or our website at www.hamptonroadsbanksharesinc.com. 

Caution About Forward-Looking Statements

Certain statements made in this earnings press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include projections, predictions, expectations, or beliefs about events or results or otherwise are not statements of historical facts, such as statements about cleaning up the Company's balance sheet and managing nonperforming assets in the future. Although the Company believes that its expectations with respect to such forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance or achievements of the Company will not differ materially from any future results, performance or achievements expressed or implied by such 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 "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K for the year ended December 31, 2009, as amended, and the Company's 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 SEC.

CONTACT: Stephen P. Theobald
         Executive Vice President
         Chief Financial Officer
         (757) 217-1000

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